callison renovation & repositioning
TRANSCRIPT
Renovation & Repositioning Strategic Responses for Retail Centers
Scottsdale Fashion Square
Before you start — Assess the Property
How can the site be maximized?
What are new revenue sources you can create by adding uses?
How can you refine the program and leasing strategy?
How can you create and reinforce a strong identity?
What can you do to refresh the appearance?
What will it take to differentiate your property from the competition?
Before After
Ala Moana CenterCreating Value
After
Ala Moana Center
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Before
Ala Moana Center
Before
After
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Ala Moana Center
After After
After – 2008After – 2008
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Ala Moana Center
ReSULtS — FiRSt RenovAtion AnD eXPAnSion in 1999
Sales per square foot averaged $1,000 — nearly $700 above industry standard
Remodeled 300,000 sf was fully leased despite significant fall-off in tourism
ReSULtS — SeConD RenovAtion AnD eXPAnSion in 2008
First U.S. mall to achieve greater than one billion dollars ($1B) in annual sales
Largest open-air mall in the world
More than 42 million visitors annually
Sales per square foot average $1,200 — $819 above industry standard
PrOjeCt DetAILS
CLIENT
general growth Properties
LoCaTIoN
Honolulu, Hawaii
SIzE
2.1 million sf
SErvICES
Master Planning
Architectural Design
interior Design
graphic Design
PrOjeCt DetAILS
CLIENT
general growth Properties
LoCaTIoN
Honolulu, Hawaii
SIzE
2.1 million sf
SErvICES
Master Planning
Architectural Design
interior Design
graphic Design
Manhattan village
Before After
Creating Value
AfterAfter
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Manhattan village
ReSULtS
Sales per square foot doubled in the first year following renovation
Captured coveted national brand tenants and increased occupancy rates to more than 95%
Five years after acquisition and renovation, property sold for $142 million, exceeding expectations by nearly 20%
After renovation, sales tax revenue from the center accounted for one-third of the city's overall sales tax revenue
iCSC Award of Merit — Renovation and expansion
PrOjeCt DetAILS
CLIENT
Madison Marquette
LoCaTIoN
Manhattan Beach, California
SIzE
550,000 sf
SErvICES
Site Planning
Architectural Design
interior Design
graphic Design
PrOjeCt DetAILS
CLIENT
Madison Marquette
LoCaTIoN
Manhattan Beach, California
SIzE
550,000 sf
SErvICES
Site Planning
Architectural Design
interior Design
graphic Design
West oaks
Before After
Creating Value
AfterBefore
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
West oaks
ReSULtS
occupancy increased from 70% to nearly 90%
Rent per square foot increased by nearly 30%
Sales per square foot increaed by more than 20%
After two years of ownership and oly a $10 million renovation investment, West oaks was sold in 2005 for an undisclosed, substantial profit to investment Properties of America
PrOjeCt DetAILS
CLIENT
Somera Capital Management
LoCaTIoN
Houston, texas
SIzE
1.07 million sf
SErvICES
Architectural Design
interior Design
Retail Design
PrOjeCt DetAILS
CLIENT
Somera Capital Management
LoCaTIoN
Houston, texas
SIzE
1.07 million sf
SErvICES
Architectural Design
interior Design
Retail Design
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Alderwood Mall
Before After
New Revenue Sources
Alderwood Mall
AfterAfter
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Alderwood Mall
ReSULtS
Median lease rates increased by 30%
Per square foot sales increased by 10% across the property
By adding nearly 200,000 square feet of space, revenue increased by nearly 50% between 2002-2004
Added 1,700 more jobs to the community
2005 Chain Store Age — First Place, open Air Shopping Center
2006 iCSC — Merit Award for Renovation or expansion of an existing Project
PrOjeCt DetAILS
CLIENT
general growth Properties inc.
LoCaTIoN
Lynnwood, Washington
SIzE
1.5 million sf
SErvICES
Master Planning
Architectural Design
interior Design
graphic Design
Scottsdale Fashion Square
Before After
New Revenue Sources
Scottsdale Fashion Square
AfterAfter
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Scottsdale Fashion Square
ReSULtS — 1998
opening sales exceeded expectations, while sales rose 10% for existing stores
A competing center's sales dropped 40%
nearly 100% lease rate
ReSULtS — 2008 & 2009
Sales per square foot still remain nearly double the industry standard
Largest mall in Arizona, averaging 10.3 million visitors annually
160,000 sf expansion anchored by Barney's new York, the first in Arizona, along with luxuary retailers such as Bottega venteta, grand Lux Cafe, Carolina Herrera, Armani exchange and Michael Kors
PrOjeCt DetAILS
CLIENT
Westcor
LoCaTIoN
Scottsdale, Arizona
SIzE
1998 – 1.8 million sf
2009 – 160,000 sf expansion
SErvICES
Master Planning
Architectural Design
interior Design
PrOjeCt DetAILS
CLIENT
Westcor
LoCaTIoN
Scottsdale, Arizona
SIzE
1998 – 1.8 million sf
2009 – 160,000 sf expansion
SErvICES
Master Planning
Architectural Design
interior Design
Royal Hawaiian Center
Before After
Community Engagement
Royal Hawaiian Center
AfterBefore
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Royal Hawaiian Center
ReSULtS
the center double the number of its tenants, now housing 110 shops and dining venues, as wellas a signature showroom
Located on one of the world's top five retail streets, Royal Hawaiian added the largest concentration of luxury flagship stores in Waikiki: Bvlgari, Cartier, FenDi, Hermès, Juicy Couture, kate spade, Savatore Ferragamo and tourneau, among others
2008 SADi Award — Renovation and expanded Power Center
2008 AiA Honolulu Merit Award — Renovation
2008 nAioP Hawaii Awards — Renovation excellence
PrOjeCt DetAILS
CLIENT
general growth Properties
LoCaTIoN
Honolulu, Hawaii
SIzE
2.1 million sf
SErvICES
Master Planning
Architectural Design
interior Design
graphic Design
PrOjeCt DetAILS
CLIENT
general growth Properties
LoCaTIoN
Honolulu, Hawaii
SIzE
2.1 million sf
SErvICES
Master Planning
Architectural Design
interior Design
graphic Design
Royal Hawaiian Center
SADi 2008 JUDging CoMMentS
"A perfect example of how to turn an outdated and inward focused mall into something much better."
"An impressive transformation from a brutalist box to a textured, animated retail experience"
Serramonte Center
Before After
Community Engagement
AfterBefore
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Serramonte Center
ReSULtS
transformed a "good" performer into one of the top performers in Capital & Countries' portfolio
Sales per square foot increased nearly 50%
Upon opening, lease rates increased from 90% to 98%
over 10 million consumers visit per year
generates more than $200 million sales annually
"Since the budget did not allow a wholesale makeover, there was careful consideration as to where money should be spent for the greatest return. As the leasing manager put it, the team "nailed it," by spending a major portion of the budge on the grand Court—which now defines the who center—while achieving a remarkable transformation of the concourses, using color, lighting and furnishing to create a clean, contemporary atmosphere."
Jones Lang LaSalle, Leasing Manager
PrOjeCt DetAILS
CLIENT
Capital & Counties USA inc.
LoCaTIoN
Daly City, California
SIzE
860,000 sf
SErvICES
Master Planning
Architectural Design
interior Design
Brand Development
environmental graphic Design
PrOjeCt DetAILS
CLIENT
Capital & Counties USA inc.
LoCaTIoN
Daly City, California
SIzE
860,000 sf
SErvICES
Master Planning
Architectural Design
interior Design
Brand Development
environmental graphic Design
R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N
Alderwood Mall Scottsdale Fashion Square
Royal Hawaiian Center Manhattan village
Conclusion
Design doesn't have to be monumental, gimmicky or expensive to be effective
it needs to respond to your customer's sense of identity, tastes and preferences
Pay less attention to national trends and more attention to your customers' needs to maximize your return on investment.
Chris Beza, AiA
Director
1420 Fifth Avenue #2400
Seattle, WA 98101
t 1 206 623 4646
M 1 206 972 9463
F 1 206 623-3625
www.callison.com