Shopping Center Business

MAY 2018

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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Page 178 of 270

STARWOOD RETAIL 174 • SHOPPING CENTER BUSINESS • May 2018 want?' We are letting the community own the event. We want our events to be or- ganic. How we merchandise our centers and program our events are important for community involvement." At The Shops at Willow Bend in Plano, the Children's Theater of Plano became a tenant at the center. The facility has 12 rehearsal rooms and a theater. Beyond performances most weekends, the theater brings children and their families to the center during the week to rehearse. In all of Starwood's 30 centers, it only received a single department store box back from the owner. Zeigler expects that this will change over time, and the com- pany is actively working with some stores and ownership entities to relinquish those properties over time. In fact, most of Star- wood Retail Partners' anchors perform in the top 25 percent of their respective chains, says Glimcher. "As much as we would love to redevel- op some of our anchor real estate, we are usually on the end of the list for store closings because of their performance," he says. "We are anxious to get some of them back so we can figure out higher and better uses for those areas of the centers." "While retail is fairly contrarian right now, we think there is a lot of opportunity around its unloved status," adds Zeigler. "Leaning into that opportunity is going to pay off for us." Even though no anchors have been handed to the company, that hasn't stopped Starwood from being proactive with some real estate. The company feels it is in a good position to offer some department stores an out and monetize their assets to help their bottom lines in exchange for their stores. "At no time in the retail sector have we been in a better place to do these chang- es with the department stores that are in place in the properties," says Zeigler. "We are in a better position to execute a mixed- use piece with the department stores." The focus on the community harkens to the mall's original purpose: when many were developed in the 1960s, '70s and '80s, the intention was they would be the epicenter of retail activity for a city or giv- en trade area. Now, as many areas around malls have been further developed, that focus has tightened as once suburban malls are now valuable infill properties that can attract uses besides retail. The retail becomes a strong amenity to attract other uses, says Glimcher. "In a given week, we want to be a lot of different things to our customer," says Glimcher. "From going to the gym to go- ing to a hair or dentist appointment to going to dinner and a movie, we want the community there several times per week. We want to be at the intersection of our customer's daily life." Zeigler, who comes from a background of developing mixed-use properties with companies like Steiner + Associates and OliverMcMillan, sees the mall incorporat- ed as part of a larger urban fabric. "When you go to an urban area, you like walking the streets; it's natural that a hotel is down the street from a restaurant, which is down the street from the store, which is down the street from an office building," says Zeigler. "The mall needs to be like those great urban cities." SCB Capital Provider to Corporate America Acquisitions, sale-leasebacks, forward take-outs and build-to-suits for single-tenant retail and corporate facilities. Visit to learn more. A full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. VEREIT® is not affiliated or associated with, is not endorsed by, does not endorse, and is not sponsored by or a sponsor of the tenants or of their products or services pictured or mentioned. The names, logos and all related product and service names, design marks and slogans are the trademarks or service marks of their respective companies.

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