FUTURE DEVELOPMENT CHALLENGES TO THE ANCHOR TENANT
ORTHODOXY IN RETAIL CENTERS.
by
Kim Wong
Juris Doctorate
Boston College Law School
1986
Masters in Business Administration
Boston College Graduate School of Management
1986
SUBMITTED TO THE
DEPARTMENT OF URBAN STUDIES AND PLANNING
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE
MASTER OF SCIENCE IN REAL ESTATE DEVELOPMENT AT THE
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
1990
SEPTEMBER,
69Kim Wong 1990
The Author hereby grants to M.I.T.
permission to reproduce and distribute publicly copies
of this thesis document in whole or in part.
Signature of the author
j
Department of Urban
Kim Wong
tudies and Planning
September 1990
Certified by
4e/
Michael H. Buckley
Lecturer in Urban Studies and Planning
Thesis Supervisor
-,
Accepted by
Gloria Schuck
Chairperson
Interdepartmental Degree Program
in Real Estate Development
MASSA4CHUSETTS INSTITUTE
OF TEC (n!nnY
FP 19 190
LIB
1
DEDICATION
This thesis is dedicated to my family. Without
the unyielding support that I have recieved from them
none of this would have been possible. I promise, no
more school after this.
To my wonderful Mother, thank you for your
unyielding faith and confidence. I only begin to
express the immense pride I have in being your son.
To my brother Bill, everyone should be so lucky
to have a brother like you. I only can hope that some
day I can return so much of the support and trust you
have given to me.
To my sister Ruth Anne, thank you for being
the remarkably supportive and caring person that you
are. Please know that I very much appreciate the
concern that you have for me.
Page 2
ACKNOWLEDGEMENTS
To my thesis adviser Michael Buckley, I can
only say how much I appreciate the time, effort and
interest taken out of your extremely busy schedule to
help me with this work. Needless to say, my admiration
is immense for the diligence and energy you use in
attempting to search out the answer to what appear to
be seemingly impossible questions. In the writing of
this thesis, I feel I have truly learned under both a
fine educator and a consummate real estate professional.
To Maria Viera, Gloria Schuck and the CRED
staff, thank you for your help and patience.
To Professors Donald Fishman and Dale Herbeck
and John Katsulas and Mary Saunders at Boston College,
thank you for your support, interest and learned ears.
I very much appreciate our friendships.
To the Mayor and Mark Conlin, my friends and
colleages at the ICSC Convention in Las Vegas where the
idea for this thesis materialized. May there be many
more such trips to the Golden Nugget where such
interesting ideas, events, and strategies are developed.
To V.J. Conlin and Greg Ramsdale, thank you
for your patience and fortitude. Now that the thesis
is completed, let's start building courses.
To my friend and peer Ed McPherson, it was
quite a summer. Without you the entire thesis process
would have been another typical academic exercise,
with you it was an truly excellent adventure. I look
forward to many more to come. You can have him back now
Doreen.
To my dear friend Lauri Webster, thank you for
your support and friendship. Your time, care and
interest are largely the reason for the completion of
this work. I value our friendship immensely.
Page 3
FUTURE DEVELOPMENT CHALLENGES TO THE ANCHOR TENANT
ORTHODOXY IN RETAIL CENTERS.
by
Kim Wong
Submitted to the Center for Real Estate Development
on September 1, 1990 in partial fulfillment of the
requirements for the degree of
Master of Science
in
Real Estate Development
ABSTRACT
This thesis sets forth a series of definitions
applicable to the retail and shopping center industries.
These definitions are necessary in understanding and
analyzing the scope of both industries.
The thesis further analyzes the current state of the
retailing industry and the significant trends which will
likely take place within the industry over the next
In addition, this thesis tracks the
several decades.
history of the development of anchorless retail centers
which includes a description of several of the most
noted of these type of centers.
A number of factors including the financial problems
currently facing the department store industry and the
increasing difficulty with the approvals process for
future site locations has made it increasingly difficult
to develop a full-size, anchored regional shopping mall.
In response to these problems, a definitive trend by
developers has been towards the development of retail
centers based on an anchorless design.
The primary question being explored in this thesis
is whether an anchorless retail center can be developed
in such a way that the locational and customer draw
characteristic of retail centers with strong anchor
The thesis sets forth a
tenants can be replicated.
series of decision-making formulas in attempting to
create a core attraction and tenant-mix which will
guarantee a consumer following for anchorless retail
centers.
Thesis Supervisor: Michael H. Buckley
Title: Lecturer in Urban Studies and Planning
Page 4
TABLE OF CONTENTS
DETCATTn
..
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.
.
..
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.
.
2
ACKNOWLEDGEMENTS...........
..
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.
.
..
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.
.
3
ABSTRACT...................
..
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.
..
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. 4
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.
.
. 10
...
A- The Market Place-....
.
.
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.
. 10
...
B- Retailing............
.
.
.
.
.
. 11
...
C- Shopping Center......
.
.
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.
. 11
...
.
.
.
.
.
. 17
...
E- Tenants ..............
.
.
.
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. 18
...
1- Key Tenants.......
.
.
.
.
.
. 18
...
2- Tenant-Mix........
.
.
.
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.
. 18
...
F- Slot Stores..........
.
.
.
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.
. 19
...
I- CHAPTER ONE-DEFINITIONS.
D- Anchor Stores........
....
0
G- Retail Goods.........
*..................20
1- Convenience Goods.
*..................20
2- Shopping Goods....
*..................20
3- Specialty Goods...
4- Impulse Goods-...
H- Thesis Definitions...
.
..
.
.
.
.
..
.
.
.21
.
.
.21
..................21
1- Anchor Tenant Orth )dox.
..
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.21
2- Retail Center.....
..
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.
..
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.
.22
3- Size of Retail Cent.er..
..
.
.
..
.
.
.22
4- Anchorless Retail Cente
..
.
.
..
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.
.23
II- CHAPTER TWO- THE RETAILING EXPERIENCE ..
.
..
.
.24
A- The Current State of Retailing..... ..
.
..
.
.24
B- The Future Direction in Retail Shopping.. ...
Page 5
o.
27
...
1- Changing Factors in Retail Shopping
Experience..................................27
a- Demographics..............................27
b- Changing Shopping Habits of Consumers
in Retail Complexes......................28
1- Declining Amount of Disposable
Income Spent on Retail Goods..........28
2- The Polarization of Incomes in
Households.............................29
3- The Trend of Job Availability
Growing at a Rate Faster Than the
Labor Force............................30
C- The Changing Factors in the Retail Industry.... 30
1- The Disarray of the Department Store
Industry.....................................30
a- The Growing Number of Consolidations
and Acquisitions..........................30
b- The Problems Facing the Department
Store Industry............................31
c- Other Problems With the Department
Store Industry............................33
1- Site Approval Difficulties............33
2- The Limitations of Key Tenants........33
3- An Overabundance of Retail Space......34
4- The Growing Means of Spending
Disposable Income.....................35
D- The Rediscovery of the Village Center..........35
1- The Definition of a Trade Area..............36
2- The Principals Behind Locational Draw.......37
3- The Nature of the Village Center............38
E- The Chain Specialty Merchants..................40
1- The Growth of Chain Specialty Merchants.....40
Page 6
III- CHAPTER 3- THE ANCHORLESS RETAIL SHOPPING
CENTER.........................................43
A- The Anchor Store Orthodoxy.....................43
B- History of Anchorless Retail Centers............45
1- Traditional Anchorless Retail Center
Prototypes..................................45
a- Market Square- Lake Forest................47
b- Country Club Plaza- Kansas City...........47
c- Highland Park Shopping VillageDallas................................48
d- River Oaks Shopping CenterHouston...............................49
2- Post World War II Prototypes.................49
a- Northgate- Seattle.......................49
b- Southdale- Minneapolis...................51
c- Festival Centers- Various Locations......52
C- The Design and Locational Theories Behind
the Anchorless Retail Center...................53
D- The Current Status of Anchorless Retail
Centers........................................57
1- Notable Anchorless Retail Centers............57
a- Borgota- Scottsdale, AZ..................57
b- The Atrium- Chestnut Hill, MA............57
c- The Scottsdale Galleria- Scottsdale,
AZ............... ........................ 58
d- Forrestal Village- Princeton, N.J........60
IV- CHAPTER 4- THE FUTURE OF ANCHORLESS RETAIL
SHOPPING CENTERS...............................61
A- The Growth Patterns in Anchorless Retail
Centers.............. .......................... 61
Page 7
B- Current Alternative Forms of Retail Center
Design Which Attempt to Recreate the Draw
of a Anchor Tenant.............................63
C- A Framework for Developing Clusters of
Uses Which Create an Equivalent Locational
Draw of an Anchor Tenant.......................67
1- The "Best-Fit" and "Triad Testing"
Approach....................................67
a- Site and Use Concept.....................69
b- Core Attractors and Retail Stores........70
1- Core Attractors.......................70
2- Retail Stores.........................74
c- Financial Feasibility of the Project.....76
CONCLUSION...........................................79
ENDNOTES ....... ...................................... 90
BIBLIOGRAPHY.........................................97
Page 8
CHAPTER ONE- DEFINITIONS
A
complete
anchorless
understanding
retail
centers
of the
development
requires that
certain
development and retailing terms be defined.
understand what
a anchorless
must comprehend
what an anchorless retailing
not.
Historically,
retailing have
defined many
through the actual practice
half
of
estate
this chapter
set
center is
and
industry terms
of their trades.
will
is, one
development
of the key
key
In order to
retailing center
real
of
forth the
The first
historical
definitions of key terms and the second half will define
key
terms necessary
to
understand the
concept of
an
anchorless retail center.
A number of terms and phrases which are used within
both industries appear to
from the field practice
have been established as much
of development and retailing as
from specific
definitions being
organization
within
definition
centers
in
of terms
this
each
used to
paper
can
set by
field.
a professional
Therefore,
define anchorless
be
retail
-considered generally
accepted key terms within both industries.
Page 9
the
The Market Place
The elements
factors
which
practice
where
of the "market place"
influence
of retailing.
the process
consumer
It
behavior
is within
of exchange
are the actual
in
the
a market
place
and distribution
takes
place, a basic foundation of the practice of retailing:
Market
places are
sites with
social,
economic cultural and other referents where
there are a number of buyers and sellers, and
where price offered and paid by each is affected
by the decisions of the others.
In
many respects
cultural
elements of
it is
the
the social,
market place
economic and
which are
key
factors in establishing a significant consumer draw to a
retailing
and
center.
greeting
These
of the
elements include
various
consumers
the meeting
drawn to
the
center, the convienent access to the center, the variety
and choice of products available and the different price
ranges
represented.
created
an
A
feel many
to
various components
consumer present
of the same
'traditional
place.
successful developer
ambience similar
melding the
center.
A
Thus,
the
will have
market place
of the
retail shopping
in a retail
center should
comforts and attractions
bazaar' atmosphere
a developer who
Page 10
by
created by
is able to
of the
the market
maximize the
consumer attraction a retailing
able to
blend the elements in
the feeling of what constitutes
project has likely been
such a way that
much of
a market place has been
created.
Retailing
The term "retailing" invokes images of the everyday
activity
of economic
retailer
provides
distribution
a
middleman's
and exchange.
The
role
the
between
producers and the consumers of goods as Robert Potter of
The University of London describes:
If the Concise Oxford Dictionary is
consulted, it is found that the noun 'retail' is
defined as
the 'sale
of goods
in small
quantities'.
This definition certainly points
to the principal function of the retailer, that
is to act as the middleman or intermediary
between the consumer on one hand, and the
producer and/or wholesaler on the other, in the
process of the physical distribution of goods.
Shopping Center
While the
many
practice of retailing can
different forms
of
marketplaces
take place in
ranging from
a
street corner to an elaborate shop, the market place for
the purposes of this paper
term
"shopping center"
created is very much the
is a "shopping center".
implies that
the market
The
place
result of a significant amount
Page 11
of
forethought
definitions of
and
planning.
the concept
one
of
of a "shopping
the
early
center" was
established by the Urban Land Institute in 1944:
A
group
of
architecturally
unified
commercial establishments built on a site that
is planned, developed, owned and managed as an
operating unit related in its location, size,
and types of shops to the trade area that it
serves.
The unit provides on-site parking in
definite relationship to the types and total
sizes of the stores.
Conceptually and in practice
retail
industries
have
historically
centers into three major
the trade
While
a
area and
blurred.
into
the tenant
practice the
mix of
was
used
the division of
groups
shopping
various centers.
in defining
actual lines of
Nonetheless,
the three
divided
categories based upon the size,
specific criteria
group, in
the development and
,
is useful
each
demarcation are
shopping centers
in understanding
the
unique characteristics associated with each type.
Neighborhood
which
sell
Centers are
convenience
Gross leasable square
square
feet
principal
with
a
goods
retail shopping
and
personal
footage is in the
supermarket
anchor tenant. 4
In
as
centers
services.
range of 50,000
serving
a national
as
the
study of
388
centers conducted by the Urban Land Institute in 1984, it
was found that
the median size of
a Neighborhood Center
was 62,525 square feet.5 The trade area of a Neighborhood
Page 12
Center is considered to be a
mile drive
radius within a five to ten
which serves a population
ranging from 3,000
to 40,000.6
In
contrast, Community
defined as
Centers are
traditionally
retail shopping centers anchored
by a junior
department store, a variety store and a supermarket.
Community Centers now
tend to be anchored
or off-price stores or
or home
by a discount
specialty stores such as hardware
improvements stores.7
hardware/home
improvements
The newest form
anchor
store
is
Quarters Warehouse chain of retail stores.
Warehouses
are
New
'superstores'
in
that
of these
the
Home
Home Quarters
they
carry
a
comprehensive line of hardware and home improvement items
in an
The
area approximately
typical
gross
150,000 square
in size.8
100,000 square feet
leasable
feet serving
square
footage
a trade area
averages
population of
40,000 to 150,000 with a ten to twenty minute drive.9
Regional
the largest
Regional
and Super
Regional Shopping
of the retail
Shopping
Center
Centers are
shopping centers in
is
typically
size.
400,000
A
GLA
(ranging from 300,000 up to 1 million) and is anchored by
a at
least one
full-line department
store.
The
usual
size of a site for a Regional Shopping Center ranges from
ten to sixty acres with a trade area population served of
150,000 or more.10 In contrast, a Super Regional Shopping
Center typically is 800,000 in
Page 13
GLA, anchored by three or
more
full-line department
area which
ranges from
acres, and serves
more. 11
The
stores, contained
fifteen to
one hundred
a trade area population
product
shopping centers are
lines
in a
offered by
site
or more
of 300,000 or
both
types
of
similar which includes "...shopping
goods, general merchandise,
apparel, furniture, and home
furnishings. ,12
There
are a
three primary
number
of modern
variations of
categories of Neighborhood,
Regional Shopping Centers.
the
Community and
An additional categorization
or subgrouping of each of these categories can be done by
focusing
on the
approach
of
considered.
within this
particular product
the
By
individual
defining
paper can be
developers to design retail
fashion.
These
goal to maintain
shopping
center
being
more
focus
these subgroups,
placed upon the
marketing
intentions of
centers in a non-traditional
intentions are primarily based
high customer draw to
innovative design
and product
mix.
intentions encouraged developers
without traditional
used in
focus or
a center through
Many of
these same
to build retail centers
anchor store tenants.
developing the anchorless retail
appear to be a combination
upon the
The theories
center concept
of many of the distinguishing
features of these particular subgroups.
While the first subgroup,
generally
accepted
term
Speciality Centers, is a
within
Page 14
the
shopping
center
industry, no specific definition has ever been completely
agreed upon.
The
primary distinguishing characteristics
of the Specialty Centers are the lack of an anchor tenant
and
an
emphasis
retailing.13 The
upon
specialty,
developers of
gift,
and
these types
fashion
of projects
attempt to replicate the same draw which an anchor tenant
would create through a
combination of stores essentially
offering the same product mix.
Festival/Speciality
Centers
shopping centers which also
anchor
tenant,
development
but,
rather
base
theme intended
'festival' feeling.
The prototype
Faneuil Hall
Rouse
Company.
Center
Marketplace
memorable
authenticity, unique
service
and
draw
to create
The
are
food
to
the
a special
festival marketplace
of
created by
architecture,
retailing
primary
the
Festival/Specialty
offerings, a blend of
specialty
entertainment. 1 4
the
in Boston
Characteristics
include:
comparison
generally lack a traditional
upon a
is
in
focus
ethnic
on-site food
and
public
of
the
Festival/Specialty Center is to encourage the purchase of
impulse items.
Fashion Centers
are retail centers comprised
collection of
high quality apparel shops,
custom shops.
The potential
of a
boutiques and
market for these centers is
definitely focused at higher income areas, thus, limiting
the
number of
potential markets. 15
Page 15
The product
mix is
composed of high quality and high priced merchandise.
general,
the
design
S...physically
of
Fashion
distinctive,
architecture using
square
foot
with
tend
to
are,
better-quality
and materials." 1 6
high-cost finishes
The sites of Fashion Centers
Centers
In
are smaller since sales per
be
higher
averages. 7 Amenities such as
then
the
industry
valet and reserved parking
are also common features of these centers.
Off-Price and
concept in
Outlet Centers are a
retail shopping
both of these types of
anchor
store
merchandise
regular
In general,
retail centers lack a traditional
Off-Price
fashion malls
prices
department
Centers are
on the
at
center design.
tenant.
characteristically
relatively new
which
substantially
stores. 1 8
In
are
offer high
discounted
comparison,
a collection of factory
same price discount
Centers
end
from
Outlet
outlet stores based
theory, but, the
tenant mix
and product lines are much broader beyond apparel. 1 9
Discount or 'Power' Centers are becoming one of the
most prevalent
forms of retail shopping
centers are generally the same
a typical
community
distinguishing feature
discount
department
rather than
a regular
centers.
size in square footage as
shopping
center.
of the Discount Center
store
or home
Page 16
The
main
is that a
improvement
department store
anchor tenant. 2 0
These
is used
center
as the
The
final
subcategory,
comprised of retail specialty
rehabilitated and
Village
Centers,
is
centers which are based in
renovated structures.
The
tenant mix
tends to be the types of stores which are appropriate for
the prevailing demographics of
the surrounding area.
In
many cases, Village Centers are based on an upscale theme
consistent
with
communities.
in
the
the
Many
surrounding
affluent
residential
of these Village Centers
are located
traditional town
squares
that
were often
the
primary business
and retail centers of
the community. 2 1
Many
town
recently
city
and
planners
have
interested in the neo-traditional
become
form of planning which
encourages this trend towards Village Center retailing.
Anchor Stores
Anchor Stores are commonly defined as the major and
largest
retail
store
within a
provides the primary consumer
shopping
center
which
draw to the development. 2 2
In neighborhood and community centers, a food supermarket
acts
as
currently
the
anchor
include
store.
variety
additional anchor stores.
On
Community
and
discount
Centers
stores
also
as
a larger scale, the common
practice in the design of regional malls is to include at
least one fashion and soft
goods department store as the
Page 17
anchor store.
Newer regional
several fashion
mall designs
and soft goods department
now include
stores as the
multiple anchor stores for the project.
Tenants
Key Tenants
In many
Store are
respects, the terms Key
completely interchangeable.
Tenant and Anchor
The
selection of
the key tenant is based on much of the same criteria that
the selection
of an
anchor store
Thus, in defining each
precedent,
also
the
Tenant
based upon.
specific term based on historical
in virtually
Key
would be
all cases
in
any
the Anchor
retail
utilizing such
a design.
Anchor Tenant,
the retail store which
shopping
However, absent
Store is
center
a traditional
provides the draw
to the shopping center is by definition the Key Tenant.
Tenant-Mix
The Tenant-Mix is considered
store
types
occupying space
in
retail shopping centers.23 The
classifications
used
in
include
Food,
Food
Retail
the collection of the
the
various types
of
different types of tenant
determining
Service,
Page 18
the
Tenant-Mix
Clothing,
Gifts,
Jewelry, Cosmetics, Drugs,
Financial,
Home Appliance,
Personal Services, Lifestyle,
Liquor, Records/Tapes/Video,
Professional Offices and Home Decor.
Slot Stores
For the purposes of the paper, a Slot Store will be
defined
as
definition
any
of
store
the Key
smaller in size with
which are
which is
not
Tenant.
Slot
within
Stores are
the
much
product mixes and merchandise lines
very narrow in
variety store.
fall
comparison to a
In virtually all cases,
are highly dependent on consumer
department or
the Slot Stores
draw created by the Key
Tenant.
Slot stores are divided by geographic scope
including national,
Typically,
through the
Slot
regional, and local
Stores
begin as
popularity of
and merchandise, eventually
in
scope.
stores
Slot
luxury
local
the growth of
retailers
and
their products
become regional and national
Stores divided
which offer
chain stores. 24
by product
items and
based upon a specialty concept. 2 5
Page 19
mix include
stores which
are
Retail Goods
Convenience Goods
Convenience
Goods
products which "...are
and
are
therefore
convenient for
Goods
are
are
retail
needed immediately and frequently
purchased
where
the shopper." 2 6 As a
generally
those
typically
sold at
it
is
the
most
result, Convenience
Neighborhood
Centers
or
smaller retail developments.
Shopping Goods
A definition
useful
of the term "shopping
in understanding
consumer
"shopping
beyond
pure
goods" tends
much
of the
convenience.
to invite
part of the more sophisticated
goods" is very
motivations of
The
purchase
participation on
those on
which the
shoppers spend
the most
effort, and for which they have the greatest
desire to do comparison shopping. The trade
area for shopping goods tends to be governed by
this
urge
among shoppers
for
comparison
shopping, and, therefore its size 2 uill affected
by the availability of such goods.
Page 20
of
the
side of a consumer as the
definition implies:
...
a
Specialty Goods
as retail
Are defined
goods which are
similar to
shopping goods in that consumers tend to spend more care
and effort
in the decision-making process
of selecting
the goods. 2 8
Impulse Goods
Impulse Goods
are retail products
are not actively seeking on
which consumers
a given shopping trip.
The
display location of these goods are based on the maximum
visibility
which can
decisions, these
be achieved.
types of stores are
In store
location
generally located
near high traffic areas. 2 9
Thesis Definitions
Anchor Tenant orthodoxy
The
custom
and
practice
on
the
part
of
the
participants (lenders, developers and retail tenants) in
the development
orient the
process of
retail shopping
design, leasing and tenant-mix
Page 21
centers to
to require a
and, preferably two fashion and
minimum of at least one
soft goods
an anchor tenant
department stores as
in a
shopping center.
Retail Center
For
paper, a
of this
the purposes
retail center
will be defined the same as a shopping center as defined
by the Urban Land Institute.
Size of Retail Center
The
paper are
anchorless
retail
centers examined
shopping centers which have
leasable area
retail component
in
this
an overall gross
of greater
than 50,000
gross leasable area. 3 0
The
universally
shopping
comparison.
term
GLA
or
accepted
center
"gross
definition
industry
The Urban
Land
leasable
on the
used
for
area"
part
is
of
statistical
Institute defines
"gross
leasable area" as:
...the
total
floor
area
designed
for
the
tenant's occupancy and exclusive use- including
basements,
mezzanines,
or
upper
floorsexpressed in square feet and measured from the
centerline of joint partitions and from the
Page 22
the
a
outside wall faces. It is the space for which
tenants pay rent iggluding sales areas and
integral stock areas.
Anchorless Retail Center
A regional
of
a retail
center without
department store serving as
of the
types of
anchorless center
stores in
the anchor.
goods
The tenant-mix
towards boutique
is oriented
merchandise and
anchorless center:
and soft
a fashion
following types of stores may
the
the definition
shopping center meeting
size.
One
of the
serve as the main draw to
National Chain
Store, Regional
Chain Store and Local Speciality Store.
A National Chain Store will
business which operates "...in
be defined as a retail
four or more metropolitan
areas in three or more states." 3 2 A Regional Chain Store
will be
defined as
than four but
than
a retail
business located
more than one metropolitan
three states.
A
Local Specialty
in less
areas in less
Store will
be
defined as a retail business located in one metropolitan
area.
Page 23
CHAPTER TWO- THE RETAILING EXPERIENCE
The Current State of Retailing
of the changing trends facing
A review of a number
be useful in comprehending the
the retail industry will
role
retail centers
that anchorless
future.
market .
weak, most analysts agree that
problems
fundamental
exists
vary from
While these opinions
very strong to generally
there
in the
on the overall strength of
Opinions are varied
the retailing
will play
must
which
be
The continued strength of retailing is fully
addressed.
problems are
how well these fundamental
dependent upon
solved.
The perceived value of the strength of retailing is
reflected in the consistently high financial real estate
returns which
over the
have been obtained from
In
last decade.
retail properties
other properties. 3 3
for all
consistency
of retailing
Company
outperformed
all
index
other
return from
the 1980's, the
percent was nearly
of 14
7.1 percent
Russell
these properties
is
documented
which
stated
sectors
double the
The long-term
by the
that
Frank
"...retail
consistently
for
24
quarters ending December 1988.34 Emerging Trends in Real
Page 24
overall assessment
with the
1990 agrees
Estate:
a strong area for
retailing is
investment, "..[R]etail
neck and neck with
development runs
that
industrial for top
rating is borne out in the
ratings in 1990."35 This top
premium prices which retail properties are still able to
Among
properties
are still
due
to
still
are
properties
considered excellent
returns.
high
their
retail
community,
investment
the
command.
prices
Top
investments
for
despite
being paid,
very
retail
high
asking prices.
In the
development,
specific retailing area of
significant
growth
continue.
patterns
in the
and 1989, growth
slowdown between 1985
After a
shopping center
development of new centers as
well as the renovation of
existing centers is likely to be strong into the 1990's.
The main growth areas will
be the development of "power
centers" due to the unprecedented expansion of "category
killers"
chain store
retailers and
the rehabilitation
and re-positioning of existing shopping centers. 3 6
Regional
because of
immune
mall
development
will
remain
their near-monopoly status which
from competition.
strong
makes them
Currently existing
regional
malls remain financially strong due to the extended time
period
currently
process.
being
The
required
in
existing regional
more service
ready
for
Page 25
the
zoning
malls also
their already
approvals
benefit by
existing
The financial returns from these malls has
client base.
justified
is
malls
The
this conclusion.
in
evident
strength of
their
regional
low
exceptionally
capitalization rates averaging 4.5% to 5.5% with some as
low
as 3%
possibilities
significant repositioning
if
exist.37
Nevertheless, despite
retailing will
performance of
the industry due to a
factors are related to
be as
the future
strong as
in the
over the short-term outlook of
past, their is confusion
the industry
the feeling that
Many of these
number of factors.
basic fundamental changes within
itself as Emerging Trends
in Real Estate:
1990 indicates:
...
Consolidations and shakeouts among retailers,
developers;
and center
stores,
department
vulnerability of older (say '60s vintage) malls
to new
competition; and
shiftigg consumer
spending patterns and demographics.
The
feeling that
many of
these problems
are directly
related to the very foundation of the retailing industry
is also held by others within the industry.
Nina Gruen,
a sociologist specializing in the areas of retailing and
marketing feels... "The
systematic and
retailing industry's
goes well
beyond... the recent
trouble is
spate of
famous, or should I say infamous, bankruptcies." 3 9
Page 26
The Future Direction in Retail Shopping
Changing Factors in Retail Shopping Experience
Demographics
on the average
customers are
larger portion of the
work force.
tend
changes
more women entering the work
more conservative,
be
will
preferences in
that style
to become
working
In addition,
less junior
apparel, which is a
apparel will
thus, annual
designers
by
influenced
less
retailers.
representing a
that a
getting older and
female population is entering the
The effect of
will be
force
retail
that
show
trends
demographic
General
women will
style
and
purchase
product line currently
large proportion of the
space currently
leased in retail centers. 4 0
As of this
point in time, retailers
recognize that the buyers
growing older and are
number of apparel
Bendel have
have failed to
of apparel, mainly woman, are
joining the workforce.
stores such as Anne
recognized the
A limited
Taylor and Henri
desire of working
women to
maintain a sense of style with the apparel they purchase
for work. 4 1
Page 27
Shopping
Changing
Habits
of
in
Consumers
Retail
Complexes
of Disposable
Declining Amount
Income Spent
on Retail
Goods
Opinions
the baby boom generation
conclusion that
and 1950's
currently support
experts
of retail
of the 1940's
fifty year
the forty to
currently reaching
the
old age group will spend less on disposable goods as the
group grows out of the traditionally high-spending years
of
Some
life.
generation
high
representative of
are looking
become
have
extraordinarly
feel
experts
levels
that
alienated
baby
the
towards
the
that
were
of consumption
the 1980's.
Consumers of
for better value as
".
boomer
the 1990's
..they are borrowing
less, shopping carefully and saving more." 42
There is a discernable trend in the portion of
disposable
goods.
income being
The percentage
spent on
non-essential retail
of disposable
non-essential retail goods has
on
dropped steadily from 20
percent in 1975 to 18.1% in 1989.43
Page 28
income spent
The Polarization of Incomes in Households
Growth of the specialty and discount stores has very
changes in consumer buying
accurately corresponded with
habits.
The changing
directly
reflective of
middle-class consumer
the
make-up
market.
As a
of consumers
are
shrinking
of the
result, successful
the ends
tailored product lines towards
retailers have
of the price
buying habits
spectrum ranging from competitively-priced
to luxury goods.44
Significant
towards
a
underclass.
demographic shifts
shrinking
In
households fell
middle-class
households
within the income levels
the
growing
the American
considered as
middle
class
were
percent below $25,000 and 7.6 percent above $75,000.
of
1990,
the distributions
have
trend
The distribution of
$75,000).
outside
a
and
48 percent of
1980, over
middle-class ($25,000 to
the
document the
changed
with a
44.2
As
2.7
percent drop in the middle-class, a 2.1 percent increase
in the lower income group,
and a .8 percent increase in
the higher income group. 4 5
Page 29
Job Availability Growing at
The Trend of
a Rate Faster
Than the Labor Force
The full
by the
be felt
As
result,
a
retailing community by
all
high-end
carrying
labor shortage will
effect of the current
retailers
goods)
training costs in order to
(and
will be
the mid-1990's.
especially
faced
those
higher
with
maintain a better quality of
service. 4 6 In addition, the shrinking labor pool insures
greater power on the part of the unions representing the
retail workers.4
The Changing Factors in the Retail Industry
The Disarray of the Department Store Industry
The Growing Number of Consolidations and Acquisitions
The department store industry has undergone a number
of significant
growing
past.
With the
consolidations and
acquisitions and
levels of leverage carried
by purchasers of
number of
the higher
the
changes over the recent
department
stores
an exceedingly
high
level
uncertainty within the industry has been created.
Page 30
of
within the
of
number
unprecedented
An
changes
structural
retailing industry have taken
place over in
Major consolidations and acquisitions
the recent past.
involving some of the nations' largest retailers has led
change in both the
to a significant
retailers
industry.
describes
and
Emerging
some of
methods
operational
the
in
Trends
the major
number of existing
Real
used
by
Estate:
changes which
the
1990
have taken
place:
.Ames's acquisition of Zayre; May Company's
realignment of a number of its stores; Mark &
Spencer's acquisition of Brooks Brothers from
Campeau; the leveraged buyout of Montgomery
Ward's from Mobil; Bergner's acquisition of
Carson Pirie Scott; and Dillgd's acquisition of
D.H. Holmes in New Orleans.
Since
then, Ames
problems faced
Federated
has
by the
department
for re-organization,
filed
Campeau Company have
stores
creditors, and Dillard's has
to seek
the
forced the
protection
from
acquired the Ivey's retail
chain.
The Problems Facing the Department Store Industry
One
facing
of the
most
the department
significant problems
store
Page 31
industry
currently
deals with
the
of
Perhaps the
acquisitions.
the
are
situations
Canadian developer,
the
and
Bloomingdales
financial
purchase of
store
chain
(including
L.J.
the
of
purchase
Marsh).
Bonwit
retail
Other
difficult
faced equally
have
include
parent company
the
facing
in his
Jordan
problems
these
Robert Campeau
stores which
department
known of
problems
financial
department
Federated
well
most
of
recent wave
the
from
which resulted
leverage
high levels
associated with the
financial difficulties
Teller
filing for Chapter
Hooker
Sakowitz
and
it's
with
Parisian
11 and
by
their
management. 4 9
Critics of the current trend towards the ownership
of
by
department stores
developers feel
number of potential problems
there are
which may be created.
a
The
critics foresee the new owner/developers using the newly
acquired
anchor
justification
tenant
to develop
which normally would not
addition, the
of
the
moot
store
store
chain by
the
anchor
by a competing
centers
a
the ownership
developer gives
a
tenant
for a
retail
developer.51 Nevertheless,
unfair lease
shake-out
a
the negotiations involving the
as the
issue regarding
as
retail shopping
as
be economically feasible. 50 In
inequitable advantage in
center owned
new
stores
industry critics feel that
a department
department
department
within
industry continues.
Page 32
negotiations may
the
department
be
store
Other Problems With the Department Store Industry
Site Approval Difficulties
Shopping center developers are currently facing
problems in
unprecedented
the
reluctance on
the growing
traffic
increased
the part of
infrastructure. 5 2
dependence
and
communitites to
result
which
the
upon
community reluctance
This
of
result of
developed as a
additional burdens
the
with
Many
projects.
their future
these problems have
these of
bear
of
development
sites for
locating adequate
from
existing
expresses
itself in the form of increasing difficulty in recieving
shopping areas.
accepting a
of
number
of retail
While many communities still appreciate
economic and tax
the added
the development
approvals for
the necessary
retail shopping center, both
communities
obtained in
benefits to be
and
site
the potential
locations
are
consistently shrinking.53
The Limitations of Key Tenants
In addition
retailing
industry
to the financial problems
which
may
availability department stores as
Page 33
potentially
within the
limit
the
anchor tenants in the
expandibility of
potential
successful key tenants who
can act as
leader in providing excellent
department store industry
service,
local markets. 5 4 Nordstrom
have outgrown the expansion
expanding into
"...
New
sales
per square
national
Nordstrom.
is at an
all-time high.
must be
two questions
much
how
First,
the
popularity of
averages, the
it's expansion
With
higher than
significantly
an anchor tenant
Nevertheless, in
by
foot
area." 5 5
D.C.
Washington,
department store
Nordstrom as
asked
Chicago, Minneapolis, Indianapolis,
the
Jersey, and
currently
is
Nordstrom
firm.
the
of a key
is also an example
tenant whose popularity may
of
on
a focus
and
lines
comprehensive product
possibilities
a
Nordstrom is
center.
retailing
for a
anchor
the
the
is
problem
The
face.
also
must
which developers
also growth limitations
future, there
expansion
is
actually feasible from a financial and operational point
of view?
And second,
presence
and
reputation
lose
position
will the firm
it's
vaulted
within
the
oversaturate it's
service
personal
local
and
national
retailing markets with continued aggressive expansion?
An Overabundance of Retail Space
The retail industry currently is facing an
overabundance
describes
of available
market
the disproportionate
Page 34
space.
amount of
Nina
Gruen
retail space
that is currently available:
Between 1974 and 1984, total retail square
footage in the U.S. increased 80 percent. At
the same time, personal income increased by
about 30 percent, if the impact of inflation is
discounted. While the rate of the increase in
new shopping center space slowed down somewhat
in the latter part of the decade, almost 700
million square feet of gross leasable area
shopping center space and over 6,000 shopping
centers were constructed in the U.S. over the
Despite this
4-year 1986-1990 time period.
center space
shopping
additional
in
slowdown
between the beginning of 1986 and the end of
1989, shopping center GLA still increased by 20
Disposable personal income increased
percent.
by only one-half tha 6 amount during the same
four-year time period.
The Growing Means of Spending Disposable Income
The growth in the alternative means of spending
disposable
income
on
continuing
threat
to
are
There
now
65,000
In addition,
houses.
retail
goods
provide
will
traditional
shopping
catalog and
mail
virtually
all cable
a
centers.
order
sales
television
57
systems offer at least one home shopping network.
The Rediscovery of the Village Center
Recent changes in the shopping patterns of consumers
attests to
typical
the rediscovery of the
is
Village Center
primary business district
usually
Village Center.
The
identified as
the
of any residential community.
Page 35
In many respects, the Village Center is a small suburban
retail shopping
will
Village Center
elements
are
which
currently drawing consumers back
If an
in
the
the
back to
anchorless
of the
atmosphere
to the Village Center,
a large
may also develop
retail center
the anchorless
sameness of
in recreating many
fundamental
higher
a standard
likely the trend
continue.
is successful
retail center
or the
center
mall, it is
typical regional
the
refined and
environment in contrast to
quality shopping
strip
of a
more
consumer seeking
older
trend towards the
Street U.S.A." With the
town's "Main
following and subsequent trade area for itself.
The Definition of a Trade Area
The industry definition of a "trade area" is useful
which a retail establishment
a purely traditional
as,
".
..that
purchase
area containing
a given
same principles
the "trade
In
"trade area"
is defined
people who are
likely to
of goods
class
ultimate market
will eventually serve.
sense, a
or
services from
a
of firms." 5 8 In many respects,
particular firm or group
the
of the
an understanding
in developing
underscoring the
area" are the
determination of
basis behind the draw
to the
Village Center.
The standard
trade area
Page 36
for most
Village Centers
a group of consumers with
has not necessarily contained
an
of the
orientation
Center is
per
high
unusually
within a
contained
shops
While
income.
capita
likely toward high quality
the
Village
and custom goods,
In contrast,
the retail price are not necessarily high.
anchorless retail centers have historically been located
in
geographic
incomes
are
areas
well
where per
above the
disposable income in these
in
contrast
to
capita
national
and
household
average.59
The
areas is also extremely high
communities
with
comparable
demographics. 6 0
The Principals Behind Locational Draw
An examination of the urban geography concept of
locational
draw
rediscovery of
is also
many of
'activity' which
is
useful in
understanding
the Village Center has
these same
taken place.
principals of
are attempted
why
the
It
'place' and
to be recreated
in the
design of the anchorless retail center.
Locational
urban
draw in
geography concept
retailing
of the
is
based upon
Central Place
the
Theory.
The Central Place Theory recognizes the premise that the
activity related
to a
location creates
area and thus, is a:
Page 37
a draw
to the
.theory of the location, size, nature, and
spacing of these clusters of activity, and is
therefore the theoretical base of much of urban
geography of retail and
geography and tg
service business.
Related to the Central Place Theory is the principle
of
illustrates
which
Centrality
convenient point
purchase goods.
the
the consumer to
of focus for
The centrality
of
concept
a
visit to
concept is rooted in the
principle that consumers will base their choice of retail
centers
they
where
locations
on
can
conduct
their
business with the least
amount of effort possible.62 The
overall concept assumes
that if the consumer
choice
of locations
choice
will always
least amount
willing to
needed
with
similar characteristics,
be the
location which
the
involves the
of effort. 6 3 Therefore, consumers
are only
for items
that are
short distance
travel a
on a
is given a
Infrequent purchases
basis.
regular
are
combined with a number of
usually delayed and ultimately
other activities such as socializing and entertainment. 6 4
The Nature of the Village Center
There are a number of factors that create an
attraction on
the part
Center environment.
of the
While a
related to the general
consumer to
the Village
number of these factors are
theories of urban geography, many
Page 38
design,
effective
an
customers,
retail
background of the
to the age and the
others are related
persceptive
merchandising and excellent service.
Characteristic of virtually every Village Center is
the unique architectural style-- the vernacular --that is
in which it is located.
typical of the geographic region
From the New England Cape Cod architecture of the Village
vast. 6 5
is
of Santa
rehabilitation
the
of
respected
has
Centers
Village
of
renovation
Most
Wellesley,
and range of local venacular
Fe, New Mexico, the variety
styles
Adobe style
the Southwestern
Massachusetts to
or
Connecticut
Greenwich,
of
Centers
and
the
architectural heritage of the existing structures. 6 6
The design
associated with
and locational factors
the Village Center have also contributed significantly to
visibility of
in
the
addition,
shops and the
the village
the destination as a
consumer
The "high street"
these centers.
the current success of
convienence of
shopping trip are important factors
to
back
draw
the configuration
of
centers. 67
In
Village Center
is
these
the
oriented towards comfortable circulation patterns for the
pedestrians.
As for
the Village
Center stores
traditional nature of the stores
draw for consumers.
themselves, the
has also proven to be a
Custom design and decor is common in
Page 39
many of the stores with emphasis on effective display and
The
presentation.
experienced
within a
emphasize personalized selling
proprietors who
The merchandise in Village
specialty store environment.
unique with in-depth stock and
Center stores tends to be
While the merchandise also
comprehensive product lines.
tends to
generally
are
tenants
be of high value
and quality it is
not always
necessarily expensive. 68
The Chain Specialty Merchants
The Growth of Chain Specialty Merchants
Another dramatic trend within retailing is the
growing number of national
base is focused upon a
product
national chain
store specialty
product line offered to
above average
single product line or consistent
merchandising
The
theme.
chain store whose merchandise
concept is to
company to maintain higher
line at a
much deeper range of choice
line. 7 0 In
will allow the
price points. 6 9 The specialty
theme utilized by these companies
product
limit the
manageable levels and to provide
service to customers which
specific product
the
behind
theory
allows them to carry a
higher quality level
with a
for the consumer within that
addition, much
greater oversite
in
inventory flow and control takes place as a result of the
more
focused
merchandise.
This control
Page 40
allows
these
firms
to
respond
to
more
demand
quickly
through
computerized inventory control and reduce inventory costs
through faster efficiency in inventory turnover.7 1
The
noted
most
of
merchants is
specialty
the
ownership of The Limited.
chain
national
the
store
stores under
group of
the
The Limited store itself is an
upscale womens' clothing store with an emphasis on sports
and casual wear. 7 2 The Limited
store was the first major
retailer to introduce point-of purchase computer tracking
of
the
currently
of
tracking
existing inventory
stock.
allows
company
inventory
the
Computer
the
and
individual stores to be immediately responsive to fastest
selling
products.73
The
Limited company
is
by
in Columbus,
Leslie Wexner, is based
retailing maverick
owned
Ohio and is composed of several different types of stores
Secret (lingerie),
including Victoria's
(juniors'
casual
professional
womens'
(mens' sportswear
(high end
apparel),
Lane Bryant
apparel),
and casual
while
Ambercrombie
fashion apparel).74 The
separate
&
sized
Fitch
Henri Bendel
merchandising concept
to create a product mix in
selection similar to a
maintaining
(larger
apparel) and
behind The Limited company is
scope and
Limited Express
small department store
store fronts. 7 5
The
large
amount of square footage represented by the collection of
The
their
Limited stores
part during
creates a
competitive advantage
lease negotiations.
As a
on
result, a
developer is faced with a competitive disadvantage as The
Page 41
square
of
amount
collection
of
on the total
negotiates the lease based
Limited company
by
represented
footage
store fronts
desired
rather
chain
store
the
entire
than on
a
store-by-store basis.
Other
merchants
noted
national
include the
upscale
specialty
cooking equipment
store
Williams Sonoma and The Pottery Barn, a store focusing on
less
expensive glassware
traditional Ralph
and
Lauren Polo
dining merchandise.
line of
The
high-end apparel
which has also started a series of boutique shops in more
affluent
communities and
Talbots, an
retail centers.
upscale womens' clothier has
comprehensive expansion strategy.
Page 42
In addition,
also started a
CHAPTER 3- THE ANCHORLESS RETAIL SHOPPING CENTER
The Anchor Store Orthodoxy
The
Anchor
development bias
Store
within the shopping
absolutely necessary
and shopper
consumer draw
the
center.
believe
Both
the
center community.
an
before the retail center
level of
to create the
to sustain
traffic required
developers and
that securing
store" tenants.
with
to succeed, a traditional anchor
In order for a project
tenant is
deals
Orthodoxy
anchor
leasing agents
tenant is
also
essential
is leasable to potential "slot
This feeling is not without merit since
the first question tenants commonly
ask is "who are the
anchors?"
Examples of this bias in favor of anchor tenants is
pervasive throughout
the
Urban Land
the shopping center
Institute
Shopping Center
Handbook common references are
securing
project.
an
The
anchor
ULI
industry.
In
Development
made to the necessity of
tenant before
proceeding
Handbook describes
the
with
a
industry's
general feelings regarding the far reaching implications
of the anchor tenant within an entire project:
Page 43
a rule, a shopping center will not be
secured
has
developer
the
until
built
commitments from key tenants. The choice of key
design,
determine site
will help
tenants
and financial
and layout,
building design
negotiation. And as already noted, it is the
key tenant or tenants, not the size of either
the site or the center, that determines the type
of center. The key tenants will also detlgmine
project.
the image that the center will
As
A classic example of
the anchor tenant orthodoxy is
found in the
development of Horton Plaza
Horton Plaza
is mixed-use
utilizes a
Hahn which
area of
revitalized
project by
developer Ernest
in a
festival marketplace theme
downtown San
Horton Plaza is 900,000
portion of
in San Diego.
retail
The
Diego.
square feet located
over five levels.
with
was faced
of
anchor
Horton Plaza,
a
barrier reflective
tremendous
tenant bias
of both
industries.
In
the
Ernest Hahn
In developing
eyes of
subsidies
absolutely
the shopping center
City
of San
were requested,
critical
and retailing
feasible in
make the project
order to
the
the
that
Diego
from whom
city officials
Ernest
Hahn
felt it
secure
large
was
major
department stores in order to create customer draw.78 On
the other
hand, the
major department stores
were very
reluctant to locate in Horton Plaza for several reasons.
These reasons
included that the department
Page 44
stores were
suburban San Diego
levels
high
maintaining
already
in
their
locations, the unconventional design
counter to many of
Plaza which was
of Horton
sales
of
the most
design for regional shopping
commonly accepted rules of
centers, the unknown nature
of the festival marketplace
concept and the previously undesirable atmosphere of the
downtown San Diego area. 7 9
After
search
a diligent
possible
department stores
Hahn had
to undertake an
secure commitments to
as
for the
anchor tenants,
unusual approach in
Horton Plaza.
of
general pool
Ernest
order to
Professors Bernard
Frieden and Lynne Sagalyn of the Massachusetts Institute
of
Technology explain
the
means which
were taken
by
Ernest Hahn in Downtown, Inc.:
...
Hahn still had to mount a special campaign to
suburban
the
attachment to
loosen
their
prototype. He managed to bypass the usual store
planners and made his pitch directly to the
heads of divisions and chairmen of 8 0 boards who
had "imagination of good merchants."
History of Anchorless Retail Centers
Traditional Anchorless Retail Center Prototypes
Many of the contemporary anchorless retail shopping
centers
center
owe their
designs of
antecedents
to innovative
the
Retail shopping
past.
Page 45
shopping
center
created many
1930's
in the
development
eventually establish the current
prototypes which would
of shopping center design
generally accepted principles
and
shops
of
collection
a
simply
early
of the
Many
configuration.
first
of the
geographic proximity of one
located
another.
centers
were
within
close
In many respects,
the early retail centers were the functional equivalents
behind the
the
Similar to the
Village Center.
of the
anchorless retail center, the
created through
atmosphere
the
the draw
to
the area.
shopping centers, there was
developers of
assumed
that
offered would
in these
Thus,
the
retail
combination of
the variety of merchandise
merchants and
create
shopping centers
retail
early
design concept
early
no single store which acted
as an anchor or key tenant to the area.81
New forms of shopping centers were created with the
development
of
shopping
regional
These
centers.
shopping centers were built by developers in response to
the
demand created
households
and
for retail
general
with the
housing growth
formations of
into
suburban
areas which followed the Second World War.82 Many of the
design
principles of
have also
centers.
these
regional shopping
been incorporated into the
A review of a
centers
anchorless retail
number of these prototypes will
be useful in understanding the anchorless center.
Page 46
Market Square- Lake Forest
the
by
is credited
Forest
Lake
of
suburb
the
in
is located
which
Square
Market
Chicago
National
Register of Historical Places as being the first planned
shopping district in the
United States.83 The timing of
the development of Market
Square in 1916 coincided with
American nation into a automobile
the transition of the
primary
the
as
automobile
increasing
the
With
society.
based
means
shopping center developers were
of
which design
shopper
and
the
transportation,
attempted both
developers
Pioneer
car.
the
faced with the question
accomodated
best
of
reliance on
chose
the
to
address this question by actually separating the shopper
Market
from their automobiles.
shopping center
Square was the earliest
which fully separated the
shopper from
the automobile by locating them in different areas. 8
Country Club Plaza- Kansas City
is located immediately adjacent
Country Club Plaza
to Kansas City in a high-quality residential suburb.
a traditional sense,
district
stores
containing
and
Country Club
free-standing
seperately
Plaza is
a shopping
independently-owned
designated
Page 47
In
store
fronts.
introduced the early design
Nichols, Country Club Plaza
unified
vocabularies,
architectural
of
concepts
J.C.
developer
by
1920's
early
the
in
Developed
management, signage control and landscaping amenities. 8 5
blending Old Spanish, Mexican
The stylized architecture
and
Southern
time. 8 6
Plaza
Club
Today, Country
service
and
retail
200
its
is considered
the
the Kansas City area with
largest tourist attraction in
nearly
for
unprecedented
was
Californian
shops. 7
Plaza
The
very successful retailing environment
continues to be a
which has experienced a
history of sustained high sales
volumes.
Highland Park ShopDing Village- Dallas
Considered to be the prototype of many contemporary
retail
shopping
centers,
Village in Dallas
the the
was built in 1931 thus,
operated
Highland Park
by developer
retail
development rather
shops.
The
development is
Shopping
being one of
as a single
first shopping centers constructed
planned unit.
and
Park
the Highland
Shopping Village was built
Hugh
than
Prather
just
as a
single
a collection
considered to be
of
the first
unified commercial district with inward facing stores to
be developed. 88 The
separation
design is on a single
by public
based upon a consistent
streets.
The
store fronts
and uniform image.
Page 48
site with no
are
The complex
such a way that it has
has been thoroughly renovated in
it's historical architectural style. 89
retained much of
The
architecture is
roofs,
cotta
...terra
original
Spanish which
includes,
and
intricate
walls
stucco
ironwork.
River Oaks Shopping Center- Houston
River
The
Hugh
developer
Oaks
Potter
as a
upscale residential
name.
center
The
buildings
which
(started in
years
of
is
took
a
detracting
architecture, the center has
which
are
the same
of
the
seven
seperate
to
complete
years
in 1949). 91
After several
original
style
of
been renovated back to the
the past.92 River Oaks is
original contemporary look of
noted for initiating
community by
series
from
by
directly
over twelve
1937, completed
built
complex
retail
adjacent to
was
Center
Shopping
many operational systems practices
industry
standards
for
today
including
percentage leases and merchants' associations. 9 3
Post World War II Prototypes
Northgate- Seattle
Though
Northgate
is
a
Page 49
fully
anchored
retail
shopping
center, an
examination of
prove to
be useful.
Northgate is
context
of the
design anchorless
the center
important within the
shopping centers
much for what it is as for what it is not.
renowned
as
being,
as
Northgate is
suburban
first
"...the
should
regional
shopping center built with a full-line branch department
store as
the leading tenant." 9 4 Northgate
first shopping
feature a
center to
also was the
central pedestrian
mall.95
Many
planning of
of the
design
Northgate are
anchorless center would
an architect
the
elements which
incorporate.
at the University of
distinctive nature
involving the
features
of
site
a successful
Meredith Clausen,
Washington describes
the site
planning used
in
Northgate:
Aimed at maximum customer convenience in
terms of both access and circulation, it was the
careful
synthesis
of
land-use
planning,
Its
traffic analysis.
and
merchandising,
concept- a long, straight, tightly compressed
pedestrian mall lined on both sides with a dense
array of stores and services- doubled the number
of stores while reducing the distances the
public had to walk, and at the same timg 6 it
enhanced the opportunity for impulse sales.
The merchandising program used at Northgate is also
instructive for anchorless centers.
one of the ways for
for an anchorless center to be successful is to create a
tenant mix which maximizes the
Page 50
use of the retail space.
The program
of
at Northgate emphasized the
in order
the center
to encourage
overall design
as
higher sales
Meredith Clausen continues:
The carefully conceived merchandising plan
controlled and coordinated the number, type, and
location of all stores and services in the
center in terms of greatest benefit to the
center as a whole; the plan, furthermore, called
for a variety of block sizes, flexibility of
interior spaces, and expandibility of the mall
complex. All these 9 actors contributed to the
success of the mall.
Nevertheless, Northgate is considered a "thoroughly
practical affair" with a
towards
center.
modernist
designs
the products
selling
The
strong central design oriented
architecture
with
few
are also
of
is
the
tenants of
considered
distinctive features.
very conventional
the
bare-bones
The
store
with simple
forms
focusing on display. 98
Southdale- Minneapolis
The
element
prototype is
of Southdale
the fact
that it
regional
shopping center.
1956 and
is located
which
was the
useful as
The
completed in
complex is
garden court all enclosed by a
single roof. 9 9
Page 51
a
first enclosed
Southdale was
near Minneapolis.
two levels with a center
is
Festival Centers- Various Locations
centers and marketplaces have
A number of festival
also
proven
to
be useful
because
a
main
of
result
centers
is
through high
the
to
the
and
"theatrical"
draw to
The locational
generally
achieved
the
without
This draw is mainly
store.
presence of a tenant anchor
created
anchorless
draws
customer
theme orientation.
historical
festival
the
is
developments
for
These marketplaces are excellent models
retail centers.
mainly
prototypes
complexes located
density office
adjacent to the development as well as the tourist trade
attracted to the area.
The
developed
Faneuil
Hall
festival
by
marketplace
the Rouse
Hall Marketplace
was
successful
in
Company
concept
with
in Boston
was
first
the opening
in 1976.
converting what
of
Faneuil
was
once
a
deteriorating part of Boston into a viable retail center
directed
at
marketplace is
restaurants,
the
sizeable
tourist
a collection of small
and
entertainment
market. 1 0 0
The
specialty stores,
spots
without
a
traditional anchor tenant.
The Rouse
other
Company has
festival marketplaces
also developed a
thus, becoming
Page 52
number of
ubiquitous
throughout the country.
These marketplaces also relied
upon
the main
festival theme
draw
to
the
center.
as
Faneuil
successful
to develop
Though
Hall,
not
the
the customer
as
dramatically
Rouse
Company
was
successful in creating marketplaces in Baltimore (Harbor
Place),
New
York
(Bayside).
(South Street
James
Corporation
Rouse
which
Seaport),
later
formed
developed mini-festival
and
Miami
Enterprise
centers
in
Toledo, Ohio, Flint, Michigan, and Richmond and Norfolk,
Virginia. 101
The Design and Locational Theories Behind the Anchorless
Retail Center
The
draw
anchorless
First,
which
center
can
the customer
concept
such
restaurants.
result of
as
will
attract
customers
to
take several
different
forms.
draw
can be
entertainment
Second,
the
created
or
a
choice located at the
may be due to the
center.
theme
collection
customer draw
the combination of merchants
by a
may
be
the
of
the
and merchandise
Third, the customer draw
spillover resulting from a previously
established regional retail center.
In
behind the
develop a
general,
the
design and
anchorless retail
locational
center are
"draw" for customers similar
Page 53
theories
quite simple,
to that created
by a
large anchor tenant
and a loyal customer
center will follow. 1 0 2 The
support the
base to
same concept is
the premise behind the rediscovery of the Village Center
as
customers continue
street retail centers
to
be drawn
in which they had
difference between the two types
Village Center
and a
to the
main
grown up.
The
of centers is that the
previously had an
history of
back
established clientele
an identity as
the town's
center of
focus.103 In contrast, the anchorless center must create
its client base from the beginning.
The
locational
anchorless
retail
theory
the
centers demonstrates
demographics are critical if
survive.
for
placement
that
of
adequete
an anchorless center is to
This dependence reflects the previous industry
bias towards making anchorless retail centers upscale in
nature.
In
Executive,
the
the
demographics
to
May
1988
absolute
an
edition
importance
anchorless
of
Chain
of
retail
an
Store
areas
center
is
explained:
Location seems to be, as always in the
development field, the key to the success or
failure of
anchorless projects... In certain
selected markets, there's room for an unancggged
center--you need density and decent income.
The
limited
amount
demographics necessary to
center raises
of markets
which
have
the
sustain an upscale anchorless
the question whether the
Page 54
current form of
centers which
anchorless
upscale
help the
would
in form
a change
surfaces whether
additional question
an
Additionally,
available.
become
would
markets
that more
in such a way
can be redesigned
the centers
are
currently struggling.
to
or
orientation
the
occupying
Theme centers
center.
draw of
the
create
to
sought
combination
the
through
a
have
generally
anchor
In the May, 1988
edition of
Chain Store Executive, Joan
consultant
explains
draw
tenants
of
traditional
through restaurants or entertainment.
the
theme
a
either
through
draw
customer
create
are attempting
types of anchorless centers
The new
created
Primo, a retail
by
theme
the
orientation:
You start getting into something that's more
of a festival or theme orientation, and/or
having restaurant 'anchors.' So, although a
restaurant is not defined as an anchor, it may
be a suffigygntly unique draw so that it acts as
an anchor.
have attempted
tenant mix.
larger centers,
the
comparison, in
In
developers
draw through the
to create the customer
In many respects, the developer is creating
an anchor store merchandise mix and product line through
the
combination of
center.
different
The collection of
atmosphere
that
works off
tenants
located at
the
stores attempts to create an
of
Page 55
one
another as
Marvin
Neely, a developer of anchorless centers maintains:
create that environment
All the stores
because of the tenant mix... We put together the
best retailers in their categories together so
that any one of them would do well freestanding
on ant of these sites; when 1 gu put them
together, you create a synergism.
Many
centers
of
the
borrow
from
current
the
designs
Village
of
Center
creating a full vision of the shopping area.
of the
anchorless centers is conducive
scanning the
general shopping area and
to enter the shops directly.
anchorless
concept
The layout
to the consumer
then being able
Marvin Neely continues:
We're actually easier and more convenient
to shop than a department store. We're half the
size... It's laid out in a strip center fashion,
so it's not intermingling, wandering from this
department to that. You can drive to the front
of the cggger and see where you want to start
shopping.
Page 56
of
The Current Status of Anchorless Retail Centers
Notable Anchorless Retail Centers
Borgota- Scottsdale, AZ.
The Borgota is a collection of of specialty stores
located
Considered
one of
collection of
The
affluent area
in the
Borgota
the
of Scottsdale,
examples of
most successful
high-end specialty shops in
has
been consistently
Arizona.
a
the country,
praised
for
it's
ability in creating a very upscale shopping environment.
William Kowinski descibes the overall atmosphere created
at The Borgota in The Malling of America:
It was a malled village of expensive shops
a
to replicate
designed
the desert,
in
thirteenth-century walled village in Italy. The
illusion was carried out with such dedication
that the mall's bricks were brought from Rome
and the shops signs and menus were printed in
Italian.. .the Borgota's inaugural festivities
included the launching of a flock of white doves
from its imj tion Italian bell tower into the
Arizona sky.
The Atrium- Chestnut Hill, MA.
Developed and owned by
Atrium is 250,000
New England Development, the
square feet in size
Page 57
over four levels
and
is
located
in
the Chestnut
Hill
area
Boston.109
The Chestnut
areas with
the demographics appropriate for
retail center
Hill area
is one
as Stephen Karp, chairman
west
of the
of
few
an upscale
of New England
Development explains:
The demographics of Chestnut Hill place it
among
the
country's
most
affluent
communities.. .As
a consequence,
every major
retailer has been trying to locate there for a
long time. Jut there's simply been no room for
development.
The development is centered around a design which
includes no large anchor store.
retail and shopping
Chestnut
Hill
Stanley Marcus, a noted
center consultant claims,
Mall
is actually
".
.. [T]he
anchor."1 1 1
our
The
Chestnut Hill Mall has experienced sales per square foot
levels which
"...may be as
U.S.,
square
are unmatched
in the
retailing industry,
successful as any shopping
reportedly generating
foot." 1 1 2
The
within one mile of the
sales
center in the
averaging $500
Chestnut Hill
Mall
is
per
located
Atrium, thus, making it directly
adjacent for consumers.
The Scottsdale Galleria- Scottsdale, AZ.
Currently
under
Galleria is a part of a
construction,
the
Scottsdale
twenty year master plan for the
Page 58
Simon &
Melvin
between
Scottsdale,
for
the
placement of
community of
area is
Phoenix
the
economy
are
anchorless
billion
will
of the
exceed
general
with 100,000
strong
exceedingly
and eight million tourists a
($2.5
Scottsdale
rate in retail sales
fastest growth
year
retail center
an upscale
year moving into the
residents per
project
Scottsdale Galleria
the
In addition,
$60,000.
of
By the year 1993, the expected household
retail center.
income
ISCC Inc.
with the Atrium, the demographics
surrounding
for the
excellent
joint venture
square-foot completed
be the largest specialty
in the country.113 As
the area
and
Associates
the 400,000
will eventually
of
A
downtown Scottsdale.
redevelopment of
new
area,115 the second
in the country, 1 1 6
year spending $6 billion a
specifically
in
the
Scottsdale
area). 117
The Scottsdale Galleria will
design
features that
are consistently
previously developed upscale
The
design features
will
cascading fountains and
granite,
comprised
brass and
of of
international
Bally
associated with
anchorless retail centers.
include exotic
landscaping,
all-natural finishes of marble,
copper.
high-end
designers
of Switzerland
combine many of the
The
tenant-mix will
retailers with
including Adrienne
and, Vidal
Sassion.
a number
be
of
Vittadini,
9 The
most
dramatic design feature will be a skybridge built over a
planned
loop road
that will
Page 59
connect the
two separate
buildings included in the design.120
Forrestal Village- Princeton,
Princeton Forrestal
foot anchorless
N.J.
Village is a
retail center located in
and
Within
a
households,
are
273,493
and, and
average
of $42,808.122 The tenant-mix
is also
a population
upscale in nature
Rodier
disproportionately high.
radius,
fifteen-mile
household income
the density of the population
income are
the household
the community
project is aimed at an
of Princeton, New Jersey. 121 The
area of the country where
200,000 square
of 759,191
with stores such as
Paris, Cignal,
being reflective of
there
Aca Joe
and, Johnston
the types of stores
Village.123
Page 60
Esprit for Kids,
& Murphy
located in the
CHAPTER
4- THE
OF
FUTURE
SHOPPING
ANCHORLESS RETAIL
CENTERS
The Growth Patterns in Anchorless Retail Centers
exist which confirm the
Several industry factors
need for alternative designs away from the traditionally
anchored retail
legal
and
department
financial
the growing
First,
center.
facing
problems currently
store chains
limits
their
number of
major
ability in
short term to fully commit to new retail centers.
the
These
problems could also easily restrict the long term growth
potential
of
unresolved.
developers
the
department
Second,
are facing
stores
the
if
increasing
in finding
they
remain
difficulty
locational sites
of
adequate size and subsequently obtaining the appropriate
approvals will naturally
for
smaller sized
developed
lease
in the
locations for
future.
payment subsidies
stores in
order for
retail center
result in developers searching
retail centers
And
third, the
increasing
by major
department
required
the store
in many cases
to anchor
will result in
center losing economic feasibility.
Page 61
to be
a particular
the retail
use of an anchorless
development industry regarding the
The faction of the
design in retail center development.
design,
to
failures
of
in
located
centers
anchorless
retail
the
with
country
the
of
areas
certain
in
centers
of
rates
high vacancy
the
equate
developers
same
these
of
Many
Orthodoxy.
Tenant
Store
Anchor
the
incorporated within
feelings
the general
reflect
design
anchorless
the
dislike
who
developers
those
In contrast,
of anchors. ,124
or needs
the demands
not chained
them to be innovative,
believe
"...
anchorless
of the
favor
in
center industry
shopping
center
shopping
within the
exist
currently
opinions
divergent
a number
these factors,
light of
In
those
areas. 125
the divergent opinions
Regardless of
anchorless
retail
anchorless
popularity in
comprehensive
developers
center
retail
the use of
survey
reflects
national
the
built.
A
patterns in the use of
the design.
of
conducted by
be
continue to
centers
comparison of the current growth
the
clear, that
industry, one fact remains
shopping center
within the
The
a
growing
most recent
shopping
center
International Council
of
Shopping Centers reflects a 3% increase in the amount of
shopping
centers defining
The 1989
operating Cost
themselves as
"anchorless".
Analysis Report issued
Page 62
by the
the total sample of shopping
ICSC indicates that 18% of
center developers polled placed their developments under
"Are
of
category
survey
the
Anchored". 1 2 6
Not
In
of the same survey, 15%
comparison, in the 1987 edition
were considered "Are Not Anchored". 1 2 7
Current Alternative Forms of Retail Center Design Which
Attempt to Recreate the Draw of a Anchor Tenant
A
how
of
review
through means other than a
of an anchored retail center
department store
framework
economically
of
future
critical that
is
viable, it
a
anchorless
centers to be
order for the retail
In
retail centers.
in creating
be useful
will
development
the
for
currently
locational and consumer draw
attempting to recreate the
large
are
developers
a level
of
consumer traffic necessary to sustain the development be
developed.
Cinema Complexes
to
eight screen
which are centered
in the
development of
the desire on
Cinema
the growth
center designs.
The growth
development community to
use facility as a
traditional anchor
Complexes
include
Century City project
centers reflects
these types of
the part of the
create a specific
replace the
one of
theaters represent
areas in alternative retail
around four
locational draw to
store.
the Cineplex
in Los Angeles and
Page 63
The
most noted
Odeom
in
the
the Fox Cinema
prototype proposed for New Jersey. 128
also attempt to create
Mini-Theme Park Complexes
the
anchor
traditional
is
that is used
isolate one particular theme
difficult to
store
While it
design approach.
an alternative
through
a
of
draw
locational
by the different types of complexes, the one factor that
remains
constant
is
traffic
to
complex
the
the attempt
through
The more classic
"attractions".
to
create
a
consumer
collection
of
example of a retailing
draw developing from the use of "attractions" is Village
Square
area
in
Cincinnati.
Village
of carnival rides and
traditional types
as a
In
supplement to create draw
Square,
games are used
for potential customers
to an area historically known for retailing.
of Mini-Theme
Park Complexes
emphasis
the
of
complexes
include
Entertainment complex
Enterprises.
collection
interactive
Others
The
of
with
prototypical
being
types of
Skywalker
currently being pursued
special
effects/black
for the
proposed
types
of
Rockopolis
which
Page 64
box
Houston
complexes
MCA/Universal City complex featuring
facilities130,
retail
Examples of these
the
the main
by Lucas
Skywalker Entertainment complex
games
similar
focus more upon
"attractions"
a sidelight.
developed as
other types
to the older complexes,
In contrast
types
is a
of
area. 1 2 9
include
the
tours of the movie
is a
rock
and
roll
contained within
museum
structure currently
a pyramid
proposed for the Memphis area 1 3 1 and, the Disney and MGM
parks located
theme
and Florida.132
in California
It
should be noted that while these types of facilities may
prove
instructional
retail
discerning
in
industry
provide limited insight into
trends, the complexes only
the development of anchorless retail centers.
also represent a
General Entertainment Districts
type
design
retail
These types of areas
within the development community.
are
of
comprised
generally
and food services
turn
locate immediately
these individual clubs and
adjacent to
entertainment
individual
performance clubs and discos.
facilities including live
Typically, retail
discos which in
entertainment district.
creates the
popularity
in
growing
currently
Examples of
General Entertainment Districts include the Dallas Alley
area
located
Theatre district
in
Orlando,
Hollywood
Dallas, the
in
in Los Angeles, Church
Florida
and,
the
proposed
Center/Mann's
Street Station
Yerba
Buena
Gardens in San Francisco. 1 3 3
Food Theme Complexes are also starting to develop
as
an
alternative
developers
traffic
of Food
environment
locational
Complexes feel
Theme
can
combination
of
facilities.
The volume
draw
be
different
created
types
of traffic
Page 65
of
concept.
The
that a
high
through
the
food
service
created will
then
the
develop
customer
to
necessary
draw
sustain
a
significant amount of retail facilities.
can
Complexes
Theme
Food
two
take
Restaurant Centers and Gourmet Food Centers.
Centers usually
consists of
forms:
Restaurant
of restaurants
a grouping
Perhaps
representing various cuisines and price points.
the most famous of these types of centers is The Borgata
Also widely known as a
located in Scottsdale, Arizona.
the
how
reflects
center,
retail
anchorless
successful
insightful clustering
Borgota
The
of
different
types of restaurants can create the consumer draw needed
to sustain an entire retail complex. 1 3 4
Market Centers provide an
In comparison, Gourmet
of retail
offering
theme.
from upscale
Centers such
store complexes
country.
food courts
as Faneuil Hall to
located in
an upscale
Market Centers exist
wide variety of Gourmet
A
ranging
based on
food services
located in
Festival
entire upscale grocery
various regions
across the
In many ways, Gourmet Food Complexes represent
an upscale
surrogate "food hall" environment
offerings such as fresh
yogurt
shops, fresh
bars.
The Gourmet
such
strong interest
that
large
Development
with food
bakeries, gourmet ice cream and
pasta, regional
Market Complex
as an
companies
raw
concept has
gained
alternative retail
design
such
Corporation
cuisines and
have
Page 66
as
the
created
R.J.
and
Reynolds
studied
approximately 60,000 square feet
foods,
gourmet
of
will feature fresh and
and
bakery,
in-store
complete
a
marketplace
proposed
the
Place",
Fresh
"The
Known as
national development.
prototypes for possible
demonstration areas for the preparation of foods. 1 3 5
A Framework for Developing Clusters of Uses Which Create
an Equivalent Locational Draw of an Anchor Tenant
The "Best-Fit" and "Triad Testing" Approach
and
consumers
American
of an
developer
cluster of
uses which
Developing
an most
of
the
of the
the best interest
anchorless retail
amount of
significant
part
within
definitive trends
it is in
retailing industry,
the
on
habits
buying
changing
With
center to
devote a
into the
eventual
pre-planning
center's space.
will occupy the
for evaluating
effective framework
this eventual cluster of uses requires the consideration
of
factors
several
scenario.
theories
within
a
Retail
Project"
The "Best Retail Project" criteria draws upon
which
underscore
criteria utilizes three factors
"Best Retail
Corporate
the
emphasized in management
Planning Model
Project" is--
Attractors and Retail
of
"Best
the Project.
planning method
Strategic
schools.
This
in determining what the
Site and Use
Concept,
Core
Stores, and Financial Feasibility
(Exhibit
provides a
1) This
type of
developer of
Page 67
strategic
an anchorless
retail center
with an
objective approach
in searching
for the most competitive and "Best Retail Project" for a
future development. 1 3 6
In addition to the definition of "Best Retail
Project",
the
includes a
three level testing process
Corporate
Strategic
Planning
Model
known as "Triad
Testing" which introduces critical objective factors for
consideration when
formulating future
retail projects.
During
of the
developer should
each phase
spend the
time necessary to
insure that
use
run a quick Triad
the project is continuing
that are consistent with
The
project, a
of
Triad
Triad
Testing
control circle".
Testing
developer
Model and
needs
to
under conditions
the original assumptions made.
involves
evaluation and reevaluation of
"quality
Test to
consider
continuous
project factors within a
Exhibit
the
the
2 illustrates
various
in
factors that
evaluating
any
the
a
new
project.
Another important
be applied
at various
center
design process
model.
Under
model of testing
stages of the
is the
this model
which should
anchorless retail
Developer Design
set forth
in Exhibit
Review
3, the
developer establishes a concept evaluation process which
imposes
during
a level
of
review at
the development
process.
several critical
These
times
reviews insure
that the original design and use goals of the anchorless
Page 68
intent is
original design
that the
a way
such
modified in
are being
met or
are being
retail center
being
served.
Site and Use Concept
of
use possibilities a developer could
variety of site and
for an
consider
which
handful
there are a
While
used in the project.
use
site and
are the
retail center
an anchorless
concepts to be
a developer
area of consideration for
The first
anchorless
have
proven
are only
center, there
to
successful.
be
a
When
considering the site and use concept, the developer must
in mind
keep
the unusual
challenge represented
by an
anchorless center: that significant traffic flow must be
created without the benefit of the locational draw of an
anchor store tenant.
Obviously,
which exist
for future
with every
design
which is
probably
in the
limitations range from the
the
With
zoning regulations.
being considered
by the
anchorless retail
likely to be
the
reason an
first place.
even more
anchorless
Site and
use
restraints that exist due to
physical capabilities
limits imposed
limitations
and use
possible site
limitations are
was chosen
the sheer
site
retail development.
centers, these
imposing
there are
of the
development to
applicable state
An important
Page 69
and local
additional restraint
is the limitation imposed by the consumer demands of the
Regardless
market.
local
income of
an area is,
retailing that the area
are
centers
market since
of how
per capita
high the
amount of
there exists a finite
can sustain.
to
extra sensitive
Anchorless retail
of sales in
successful levels
local
of the
limits
all retail
stores is necessary to create the synergy of the center.
It is absolutely necessary
from the beginning of
the developer
retail center project that
an anchorless
determine how much physical space will be available.
determining this
amount, a
developer can
By
then proceed
with deciding upon which Core Attractor the project will
utilize and the complimentary
retail tenant mix.
these preliminary decisions are
then proceed
After
made, the developer can
to configure the center
and determine its
financial feasibilty.
Core Attractors and Retail Stores
Core Attractors
The decision regarding what the "Core Attractors"
will
be
earliest and
The
anchorless
within an
is one
most critical choices facing
development
essential in
center
of
successful
Core
creating the locational and
Page 70
of
the
a developer.
Attractors
is
consumer draw
is the
Festival Centers,
itself with
the center
is usually
Core Attractor
In
Key Tenant.
or the
Anchor Store
retail center.
the Core Attractor
retail centers,
In anchored
building
traffic
within a
strategically located
devices
the
as consumer
defined
are
Attractors
Core
unanchored retail center.
necessary to sustain an
it's historical background or unusual location.
anchorless retail centers can
Core Attractors in
Included in this list would
take many different forms.
be the
very obvious
retail
stores
locational
creating
Attractors
who
developers
for
draws
Core
types
the
of
the
addition,
In
together.
working
examples
successful
most effective
combination of the
have
already put them in use are Cinema Complexes, Mini-Theme
Parks
an
in
Entertainment
areas
Districts,
and
both
(including
expanded
established
list of
Core
Theme
Food
Retail and
Food
retail,
for
General
Complexes
Service).
Food
An
Attractors includes
activities
the general
population
amongst
growing
in popularity
such as
Cultural/Performing Arts and
Home Improvements
and Decoration.
While
there
disadvantages to
are
each of the possible
one thing is obvious:
and
Core Attractors,
under the right circumstances the
activities or combination of
consumer
advantages
significant
and locational
activities will create the
draw
Page 71
necessary
to sustain
a
The selection of
significant amount of retail activity.
upon a number of factors
a Core Attraction is dependent
ranging
from
draw
locational
maximum
the
to
efficiency
in
creating
of
feasibility
the economic
the
activity or combination of activities.
group can be further
Each general Core Attractor
broken
under
Core
Entertainment
the
example,
For
group.
the
contained within
activities
different
subcategories representing
down into
Attractor
group,
the
subcategories include restaurants, bars/live performance
games, exhibits
Similar
exhibits.
a list
breakdown of
each Core
effect
of
types
of the
use and,
be
Exhibit
a detailed
contained within
of uses
the range
such as
can
subcategories
ranking of the
Attractor, a
arcade
demonstration
Core Attractors,
the subcategory
of each
and
Core Attractor groups.
developed for the other
4 provides
artisans
and,
and
rides
scheduled events
and museums,
arts
performing
games,
interactive
clubs/discos,
locational draw
of minimum
square
footage necessary for each use.
A number
of the Core Attractor
subcategory uses
have several different elements represented within them.
For example, the subcategory of restaurant uses would in
most liklihood not be limited to a single restaurant.
developer
should attempt
to
create
restaurants which would enhance
Page 72
a combination
A
of
the locational draw for
In
types of consumers.
many different
the subcategory
of retailing, the various types and combinations of uses
detail the
5 describes in
Exhibit
significant.
is is
various uses contained within each of the subcategories.
Attractor itself can be a
In some cases the Core
from
activities
Attractor
Core
the
however,
cases
In most
a Cinema Complex.
single activity such as with
groups can
be combined to
produce a
synergy within the anchorless
retail center.
This kind
several different
of
can
synergy
right
the
with
produced
be
also
combination of Core Attractors and related retail shops.
This
synergy results
the
as
affect
the
to
undoubtedly
specific
combinations, it
some
better
natural "fits"
In
is obvious
than
synergy
the maximum
location.
others.
Within
The
resulting
support are created.
of
degree
result in
the
through
subsidizes other uses as
additional levels of economic
overall
Exhibit 6
types of uses.
another.
synergy affect contributes and
highest
the
has a unique dependency and
the entire center, each use
relationship
of
segment
created
synergy
interdependency of the different
cross-sales
one
from
are influenced by others.
the
economic
a cross-subsidizing
customers
anchorless center
documents
in
created
consumer draw
evaluating
that some
In many
of uses consistent with
areas demographics.
Page 73
The
will
to a
different
uses compliment
cases
there
are
the surrounding
Retail Stores
After the decision of what type of Core Attractor
most
creating
in
Centers
Retail
Anchorless
successful
The
efficiency.
maximum
at
draw
to
center
for the
store mix
correct retail
determine the
an
next step for a developer
Anchorless Retail Center, the
is to
to
draw
locational
create the
to
used
be
will
consumer traffic thus far have been based on the synergy
such as the Saddle Creek
Some anchorless retail centers
Germantown,
in
located
Center
and stores.
of top retailers
a combination
created by
have
Tennessee
flow from
creating the necessary traffic
successful in
been
their inception.137 other anchorless centers such as the
create
to
centers
for the
still waiting
Atrium are
New
traffic.
customer
in their
main draws
England
Development, the developers of the Atrium see the recent
the key
providing
expected
Henri Bendel
sales
during
as
the level
of
the center.
has resulted
the
store
Bendel
in developing
factor
to sustain
traffic necessary
opening of
Henri
high-fashion
the
of
opening
Atrium's
The delayed
in a
first
lower than
year
of
operation. 1 3 8
A developer
all
of
the retail
hoping to create a
stores
and
Page 74
tenant-mix where
other uses
within
an
together must carefully evaluate
anchorless design work
the
stores and
types of
must also be given to
the
the local
set
services
out
in
given the
tenant-mix
footage
and
square
stores
and
associated
7
Exhibit
is
essential
use limitations
size and
food
to
a
the appropriate
to create
is attempting
developer who
information regarding
uses
of
retail
of
requirements
The
market.
types
various
the feasibility of the tenant-mix
capabilities of the center and the
in light of both the
needs of
Consideration
uses desired.
of the
proposed anchorless center.
retail centers
anchorless
approach
Niche"
serving
affluent
examples
of the
market.
tenant-mix
and
areas
being
a "Market
merchandising.
retail centers
most
the
successful
thus far,
anchorless design
there is
following can be
believe that a similar
good reason to
created in
to
future is
in the
With the upscale anchorless
(Exhibit 8)
developers of
distinct possibility for
One very
an anchorless center targeted
at a specific
It is possible that an anchorless retail center
can be developed around a family oriented theme with the
Core
Attractors
anchorless retail
stores
specifically
family.
a sizeable range
drawback to the Market
Page 75
Approaching
Niche strategy
markets away from
well as creates
A
all
centers from a Market
number of
expands the
locations.
retail
various members of the
focused at
areas as
and
just affluent
of possible
Niche approach is
while affluence
critical factor, a
no longer remains a
densely populated Target Area is still required.
Financial Feasibility of the Project
in the
final factor
The
"Best Retail
Project"
model is the testing of the Financial Feasibility of the
It
Project.
is very
important that
a pre-development
a proposed
anchorless retail
feasibility of
financial
center be conducted since this type of study will inform
the
developer if
the anchorless
retail center
planned given the various
proceed as
influencing
The format
the project.
financial feasibility of an
should
financial factors
for testing
the
anchorless retail center is
similar to the format used to test the viability of most
retail projects.
With anchorless
retail centers a base
assumption must be made that the Core Attractors and the
of the
synergy
customer traffic
From that
the
development
the level
will create
flow necessary to sustain
point, the
anchorless retail
the center.
testing of
financial feasibility
much the
proceed in
center can
of
same way as a general retail center.
Financial
examining
retail
decision
Feasibility
the target
center's
must be
market support
proposed
made
center will focus on a
location.
whether
begins
analysis
of an
A
by
anchorless
fundamental
the anchorless
retail
specific Market Niche or whether
Page 76
If the
choice is made
center
at a
is consistent
conducting a financial
required
anchorless
center
Feasibility
approach
financial
the
analysis conducted
require
an
The developer
information will
feasibility
be determined.
can
prior to
prior to the analysis because
more specific
that
before
with that goal
feasibility test.
must make these decisions
is likely
developer must
Niche the
and develop an effective retail
select a Core Attractor
it
anchorless retail
to target the
specific Market
tenant-mix that
general public.
will be to the
of the project
the aim
under the
evaluation of
retail market conditions of
The
both
be
of
the
Financial
Market Niche
the
general
the proposed target area as
well as the individual consumer purchasing habits of the
market receiving
critical in
information are
Both types of
focus.
determining the financial feasibility
of a
retail center with such a precise focus.
In
contrast, if
center will
the proposed
attempt to appe al to
as its potential market
anchorless retail
entire general public
are a, the financial feasibility
analysis will undoubtedly be much broader in scope.
target market support of
The
th is type of anchorless retail
center will depend highly upon the overall acceptance of
the center by the community.
After the complete analysis
support
existing
within
the
Page 77
of the tarket market
surrounding
area,
a
financial
pre-development
study
feasibility
of
the
entire anchorless retail center should then be conducted
by
the
developer.
development costs
Attractor,
and
analysis
is the
three-step
include
will
effects and of
tenant-mix and
facilities.
features
analysis
and revenue
retail
the
Forma Format,
This
Typical
of
format of
and Return Measures set
9.
Page 78
the
this
the
the Core
supporting
type
Base Case,
of
Pro
forth in Exhibit
CONCLUSION
for
alternative
solid
constraints
the
facing
whole as
society as a
to changes within
surfacing due
are
reasonable
be a
centers can
developers
of
histories
with
centers
that these
profitability
should
mixed, there
been
has
retail centers
anchorless
enough
which
While the success record of
with their future projects.
anchorless
exist
anchorless design
of an
the option
carefully consider
center
developers
center
shopping
that
dictate
shopping
industries
retailing
and
development
within the
trends
Significant
well as communities in specific.
Research
careful
planning an
anchorless retail
type
a fully
of
anchored development.
locational
core
different
tenant-mix.
design must
A
draw
can
attractions
and
a
from
a
be invaluable in
number
an
anchorless
necessary in
design will
the ultimate success
project.
Page 79
of
Much of the pre-planning
anchorless
an
of this
well-formulated
time and resources
spend the
in considering
prove to
be
The source
developer contemplating
fully evaluating this option.
used
shopping center
have the same locational draw
can be created which will
of
that with
paper indicates
within this
later
of the
still
An anchorless
retail shopping center
be considered
too radical
Neverthelss,
if the
shopping center
current
design will
rather than
a choice.
of retail
ultimately
For the
developers.
in retailing
trends
development continue,
anchorless
developers
for many
design may
the role
become a
of the
necessity
innovative and creative
shopping centers,
the anchorless
design has already proven to be a viable option.
Page 80
and
EXHIBIT 1
Best Fit For
Anchorless Retail Centers
Page 81
EXHIBIT 2
Triad Testing
For Anchorless Retail Centers
Page 82
EXHIBIT 3
Construction
& Tenant Occupancy
Control Sessions
For Retail Development
Page 83
EXHIBIT 4
CORE ATTRACTORS
SUBCATEGORIES
DRAW
MINIMUM S.F.
Entertaiment
*
Restaurants
* Bars/Dance Clubs
* Interactive Games
* Carnival Rides/
High
High
Unknown
High/
Medium
High
Medium
Medium
20,000 S.F.
25,000 S.F.
3-5,000 S.F.
10-30,000 S.F.
5-50,000 S.F.
1-5,000 S.F.
1-5,000 S.F.
Four Screen
Eight Screen
Medium
Medium
15,000 S.F.
25,000 S.F.
High
High
12-15,000 S.F.
12-15,000 S.F.
High
Low
High/
Medium
7-10,000 S.F.
5,000 S.F.
3-5,000 S.F.
High
Low
Medium
High
High
Low
High
5-10,000 S.F.
1-3,000 S.F.
3-10,000 S.F.
2-10,000 S.F.
5-15,000 S.F.
2-5,000 S.F.
1-3,000 S.F.
Amusement Games
* Exhibits/Museums
* Planned Events
* Artisan Demonstration
Cinema Complex
*
*
Food Retail
*
Local Farmers Market
*
Market Hall
*
*
Family Oriented
Premium Sit-Down
*
Cafe/Bistros
Restaurants
Retail
* Fashion
*
*
*
*
*
*
Gift
Home Decor
Lifestyle
Leisure
Convenience
Food Retail
Page 84
EXHIBIT 5
CORE ATTRACTOR: SUBCATEGORY
DESCRIPTION OF USES
Entertainment: Exhibits/Museums
*
Children's
Discovery (1)
* Science (1)
* Aquarium (1)
Food Retail: Local Farmers Market
*
Local Green
Grocer (1)
* Special Energy and
Quality Level (1)
Food Retail: Market Hall (2)
(Stylized and subleased
using architectural shell
and signage to create the
illusion of a Market Hall)
*
*
*
*
*
*
*
Restaurants: Family Oriented (2)
Fresh Bakery
Produce
Deli
Meats and Poultry
Pasta
Wine
Gourmet Teas/Spices
* Theme
* Various
* Design
Price Points
Restaurants: Cafe Bistros (3)
* Grills
* Ethnic
* Bakery/Deli
Retail: Fashion
* Childrens (3)
* Shoe Stores
* Cosmetics/Perfumes
* Guild Jewelry (3)
* Handcrafted Jewelry
* Mens Ready To Where
* Ladies Ready To
Where (1)
* Sportwear
* Swimwear
Retail: Gift
(1)
* Artisan Crafts (1)
* Cards/Stationary
* Luggage
* Import
* Bed & Bath
* Prints & Frame Shop
* Flowers/Plants
* Furniture/Housewares
* Appliances
Retail: Home Decor
Page 85
Retail: Lifestyle
*
*
*
*
*
Retail: Leisure
* Hobby
* Toys (3)
* Sports Equipment
* Athletic Shoes
Records/Tapes (1)
Videos (1)
Art Materials
Bookstores (1)
Travel Services
Retail: Convenience
*
*
*
*
*
*
*
*
*
*
Retail: Food Retail
* Wine (3)
* Ice Cream
* Food Court
(3)
Hardware (1)
Drugstore
Shoe Repair
Laundry
Financial
Office Supply
Doctors Office
Dentists Office
Insurance
Optomologist
(1)
Notes:
(1) Single use has significant effect on locational customer draw for
entire facility.
(2) Whole subcategory has positive effect on locational customer draw
for entire facility.
(3) Single use has medium effect on locational customer draw for entire
facility.
Page 86
EXHIBIT 6
Core Attractor and
Retal Mix Synergy
Leisure Retail
+4
Craft & Gi
Retail +3t
Food +5I
Service
Men's &
Women's
Specialty
Fashion +3
Cinema/Theater +4
Entertainment
Attractions +5
4
Page 87
Core Attractor
t
EXHIBIT 7
RETAIL AND FOOD SERVICE USES
Square footages included are approximates and should only act as a
guide when merchandising plans.
FAST FOD
Juice
Yogurt
Raw Bar
Ice Cream
Italian Pizza/Grinders
German
400-600
500-800
800-1200
400-1000
400-600
Bagels/Pretzels
Greek/Mid East
Chinese Hungarian
Mexican
Fresh Pasta
Delicatessen
Hot Dogs/Hamburgers
Soups & Salads
Coffee & Pastry
Sandwiches
Soul
Baked Potato
Pasta/Charcuterie
Raw Bar
Sushi Bar
300-600
600+
RESTAURA-NT
Cafe
Theme Bar
Bookstore/Cafe
Cocktail Lounge
Greek
Amerian Regional
Northern Italian
Chinese
Healthy Food Restaurant
Mexican
French Bistro
Charcuterie
Candy/Nuts
Candies
Cookies
Dried Fruits & Nuts
Coffee/Tea/Spices
Chocolates
Cheeses
Gourmet Foods
Bakery
Greengrocer
Fresh Meats/Fish
Butcher
General Store
1500-5000
4000-6500
5000-7000
3500+
1500-2000
2000-5000
3500
1500-2000
1000-2000
1500+
1500+
800+
Tablecloth (full menu)
Ice Cream Parlor
French Restaurant
Japanese Restaurant
Seafood Restaurant
Traditional Steak House
Northern Italian
Indian
Grillage
Vietnamese
Greek Taverna
ADDITIONAL USES
400-600
Farmer's Market
300-600
Produce Market
Charcuterie
300-600
Wine Shop
300 +
Wines/Liquors
300-500
Delicatessen
300-600
Supermarket
800-2000
1500-3000
Fresh Pasta (Gourmet Foods)
1500-2000 Health Foods
1800+
1500
Breads
Bakery-Patisserie
1500
Gourmet Groceria
1500-2000
Wine Bar
300-400
400-600
5000-7000
1500-2500
4000-7000
2000-4500
1500-3500
1500-2000
1500+
1800+
1800+
1500-2000
1500+
1500-3000
3000+
6000-45000
600-2000
800-1500
500-600
12000-25000
FASHI2N
Women's Sportswear
European Men's & Women's
Preppy Fashions
European Women's Knitwear
English Prints & Fabrics
Maternity Shop
WRTW Contemp. Career Apparel
MRTW (Designer-Traditional)
Men's Shoes
100-5000
1500+
1500+
1000-1500
Designer Fashions
Sweaters & Knitwear
Westernwear
Irish Woolens
1200-2000
1000-1500
1200-2500
1200-6000
1500-2000
Dancewear/Hosiery
Maternity
Formalwear
Jeans
Sportswear/Men/Women
Page 88
1000-1500
500-1000
1500-2000
800-1500
600-800
1200-1500
1500+
1500-2000
1500+
Designer Fashion Shoes
Women's Shoes
Shirts/Ties
Casualwear/Men & Women
Activewear
Formalwear
Coordinates
Eurosport
1500-2000
1500-2000
1000-1500
2000-3000
Perfume/Cosmetics
Handbags
Accessories
Gloves, Belts & Scarves
Leather/Luggage
Fashion Eyewear
350-1000
600-800
600+
400-600
600-1500
European Jewelry
Guild Jewelry
(fine jewelry, crystal & china)
Estate Jewelry
Antique Jewelry
Fashion Jewelry
Vogue Jewelry
1000-2500
2000-3000+
900-1500
1500-2000
1000-1500
1200-1800
Rainy Day Clothing
Leather Fashions
Family Shoe Store
Athletic Shoes
Petite Fashions
Plus Sizes
Children's Apparel
Fun Fashions
1200-2000
1000-2000
1200-1800
ACCESSQRIS
Canvas Bags & Totes
Haberdasher
Hosiery
Cosmetics
Lingerie
500-1000
1500
300-500
500-1000
600-1000
JEWELRY
600-1000
"
Contemporary Jewelry
Handcrafted Jewelry
600-1000
Credit Jewelry
1000-1500
Fine Watches
500-750
(Honore) Type Jewelry
600
(antique, contemporary estate & antique)
Barber
Hair Stylist
Optician
Dry Cleaner/Laundry
Bank
Automatic Teller (24 hour)
Keys
Shoe Shine Stand
Travel Agent
Museum Store
Hardware/House Decor
Vitamins & Health Foods
Apothecary/Pharmacy
Drugs & Sundries
Health & Skin Care Salon
Sun Tanning
Video Rentals
Cards/Stationery
SERVICE
1000+
Photography Studio
1000
Office Supply
1000
Fine Custom Stationer
1000-1500
Pipes/Tobacco
4000+
News/Tobacco
350
Copy Center
100
Florist/Plants
50-75
Car Rental
500
Tailor
1500-2000
Phone Store
2000
Shoe Repair
750-1200
Film/Camera
3500+
Ticketron
1500
Sundries
1000-1500
Figure Salon
500-1800+
Air Ticket Office
1000-3000
Stationery for Business
1500
& Home
Hobby/Crafts
Artist Supplies
Artisan's Co-op
Pottery/Crockery
International Crafts & Gifts
1500+
1500-2000
2000-3000
1000-1500
1000-2000
Pro Shop
Racquet/Ski/Swim
Hunting & Fishing
Athletic Shoes
Sports Gift Shop i.e. Whalers
300-500
1500
1500-2000
1000
1500-3000
800-1000
1000-1500
500-1000
600
600-1000
400-500
1000
1500-2000
600
600
100-200
1000+
2000+
600
1000-2000
LIFESTYLE - ARTS
Art Gallery
Sculpture Gallery
Arts/Crafts
Bookstore
Art Prints & Framing
SPORTS & ACCESSORIES
1500+
Typical Sporting Goods
2500+
Major Sporting Goods
1000-2000
i.e. EMS, Herman's
1000+
Abercrombie & Fitch
1500-2000
Page 89
1500-3000
1500-3000
1500-2000
2000-4500
1500-2000
2500-7000
10000-25000
LIFESTYLE - GIFTS
Soaps & Scents
Toys/Games
Lighter Shop
Watch Shop
Apothecaria
Jam/Jellies/Soaps
Leather/Luggage
Sea Shell Shop
& Tropic Jewelry
Clocks & Other Time Pieces
600-1000
1500-2000
300
300
1500-2000
600-1000
600-1500
Tabletop
Fine Cutlery & Kitch. Gadgets
Cookware/Housewares
Glassware
Bath Shop
Fabric/Notions
Fabrics & Wallhangings
Furniture (Scandanavian
antique, contemporary)
Flowers/Plants
Small Furn. & Accessories
Knock-down Furniture
Wicker & Seasonal Furniture
& Accessories
Oriental Carpet Gallery
1200+
600-1000
1800-4500
750-1500
800-1500
1000-3000
1000+
5000+
300-500
1000+
Brookstone
Chandlery/Candles
Brass & Crystal Gifts
Brass & Pewter Gifts
Party Supplies
Cards & Gifts
Kites
Candle Shop
Music Boxes
3000
(2200 w/mezz.)
1200-1500
400-1000
400-1000
1000+
1500-3000
600
1000+
500+
LIFESTYLE - HOME
600+
1500-2000
1000-1500
1500-2000
1000+
LIFE STYLE
Tools & Hardware
China/Glassware
Bedding & Linens
Buttons
Sefving Machine
Yarn Shop/Needlepoint
Clock Shop
Paint/Wallpaper
Garden Shop
Music Boxes & Clocks
Antique Collectives
Silk & Dried Flowers
Lighting Store
Tabletop (Linens & Access.)
2500-3500
1500-2000
1500+
300
1506-2000
1000-1500
1000-2000
2000
2000+
500-800
2000-4000
600-1000
1500
1000-1500
- MUSICAL/ELECTRONIC
Records/Stereo & Electronics
Camera/Video
Camera/Film
2000-4000
800-1200
600-1000
Parfumerie
Leather Crafts
Handcrafted Jewelry
Handmade China & Glassware
Handmade Pillows
Doll House Furniture
Antique Dolls
Antique Nautical & Meteorology
Collectible Records
& Phonographs
Puppets & Clowns
CRAFTS & ANTIQUES
Handmade Woolens
300-400
500/CART Wooden Toys & Sculpture
500+
Handthrown Pottery
& Ceramics
500-1000
500+/CART Miniatures & Collectibles
500
Grandfather Clocks
500/CART
& Timepieces
500-1000
Rare Books & Signed
Letters & Prints
800
Puzzles & Magic Tricks
500/CART Train & Hobby Shop
Children's Apparel
Children's Toys
Stuffed Animals
CHILDREN
1500
Bicycle Shop
1500
Toys & Kites
1000-1500
Children's Books
Computer Store
Pianos/Musical Instruments
1500-2000
2500-3500
500-600
500/CART
500+/CART
500/CART
500-1000
500-1000
500/CART
500/CART
1500+
500-800
500-1000
ENTERTAINMENT & HEALTH
Health Club
10000-25000 Exercise Clubs
10000-15000
Cinema (movie theatre)
2500-5000ea (Racquet Ball Courts) 20ft. high - 800 sf
Dinner Theatre (24 seats-76 seats)
Auto Bank Teller
Bank
Stock Brokerage Firm
MISCELLANEOUS
100-200
Auto Repair Center
1500+
Gas Station
Page 90
10000
1500-3000
EXHIBIT 8
MARKET NICHE
TYPES OF USES
Family
*
*
*
*
*
*
*
*
Childrens Clothing
Young Professionals
*
*
*
*
*
*
*
*
Food Market Hall
Ready To Wear
Jewelry Stores
Artisan Crafts
Bookstores
Travel Services
Sportswear
Records/Tapes
Upscale
* Premium Restaurant
* Cafes/Bistros
* Food Market Hall
* Fashion Clothing
* Cards/Stationer
* Luggage
* Wine Store
* Bookstores
Mature Adolescent
*
*
*
*
*
*
*
*
Page 91
Toys
Ready To Wear
Sportswear
Cinemas
Hobby
Sports Equipment
Family Restaurant
Hair Salons
Swimwear
Sports Equipment
Records/Tapes
Video
Sportswear
Jewelry
Prints/Framing Shop
EXHIBIT 9
Anchorless Retail Center
Pre-Development Financial Feasibility
Base Case
Pro Forma Format
Page 92
Return Measures
ENDNOTES
1 Cyril S. Belshaw, Traditional Exchange and Modern
Markets (Englewood Cliffs: Prentice-Hall, 1965), 1.
2 Robert B. Potter, The Urban Retailing System
(Aldershot: Gower Publishing Company Limited, 1982), 3.
3 Urban Land Institute, Commercial and Retail
Development Council, Shopping Center Development Handbook,
2nd ed. (Washington, D.C.: Privately printed, 1985), 1.
4 Ibid, 3.
5 Urban Land Institute, Dollars & Sense of Shopping
Centers: 1984 (Washington, D.C.: Privately printed, 1984),
155.
6 Urban Land Institute, Commercial and Retail Development
Council, Shopping Center Development Handbook, 1st ed.
(Washington, D.C.: Privately printed, 1977), 4.
7 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 4.
8 "The Bigger, The Better," Home Quarters Warehouse
Advertisement, Boston Globe, 17 August 1990, 24.
9 Urban Land Institute, Shopping Center Development
Handbook, 1st ed., 4.
10 Urban Land Institute, Shopping Center Development
Handbook, 1st ed., 7.
11 Urban Land Institute, Shopping Center Development
Handbook, 1st ed., 7.
12 Urban Land Institute, Shopping Center Development
Handbook, 1st ed., 7.
13 Urban Land Institute, Shopping Center Development
Handbook, 1st ed., 10-11.
14 Bernard J. Frieden and Lynne B. Sagalyn,
Downtown, Inc. (Cambridge: The MIT Press, 1989), 172.
15 Urban Land Institute, Dollars & Sense of Fashion
(Washington, D.C.: Privately printed, 1988),
Malls: 1988
64.
Page 93
16 Ibid,
64.
17 Ibid,
64.
18 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 9.
19 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 9.
20 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 9.
21 Halcyon Ltd., "Retailing Industry Information
1990), photocopied,
Memoradum," (Hartford: Halcyon Ltd.,
1.
22 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 147.
23 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 154.
24 Halcyon Ltd., Retailing, 2.
25 Halcyon Ltd., Retailing, 2.
26 Urban Land Institute, Shopping
Handbook, 1st ed., 3.
27 Urban Land Institute, Shopping
Handbook, 2nd ed., 3.
28 Urban Land Institute, Shopping
Handbook, 1st ed., 3.
29 Urban Land Institute, Shopping
Handbook, 1st ed., 3.
Center Development
Center Development
Center Development
Center Development
30 "Opinions Differ on Anchorless Centers: Are They
Innovative?
Or Responsible
for High Retail Vacancy
Rates?" Chain Store Executive, Vol. 64, May 1988, 59.
31 Urban Land Institute, Shopping Center Development
Handbook, 1st ed., 3.
32 Urban Land Institute, Dollars & Sense of Fashion
Malls, 5.
33 Real Estate Research Corporation, Emerging Trends
in Real Estate: 1990 (Atlanta: Privately printed, 1990),
24.
34 Ibid, 24.
Page 94
35 Ibid,
23.
36 "Pile'em High and Go Bust," The Economist, 7 July
1990, 70.
37 Real Estate Research Corporation, 24.
38 Real Estate Research Corporation, 23.
39 Nina J. Gruen "1990 Retailing Fundamentals:
Problems and Solutions" (San Francisco: Gruen + Gruen
Associates, 1990), photocopied, 1.
40 Ibid, 5.
41 Julie Hatfield, "'Retail
is detail,' and there's
Boston Globe, 7 August 1990,
plenty at the new Bendel's,"
51.
42 "Hunkering Down,"
Time, July 23,
1990, 56.
43 Gruen, 2-3.
44 Gruen, 3.
45 Gruen, 4.
46 Gruen, 5.
47 Gruen, 5.
48 Real Estate Research Corporation, 25.
49 Landauer Real Estate Counselors, 1990 Real Estate
Market Forecast, (New York: Privately printed, 1989), 7.
50 Real Estate Research Corporation, 25.
51 Real Estate Research Corporation, 25.
52 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 39.
53 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed.,
54
Business
1984, 3.
308.
Harvard Business School,
"Nordstrom,"
Harvard
School Case Study, 9-579-218, Rev.
November
55 Real Estate Research Corporation, 26.
56 Gruen, 1-2.
Page 95
57 Gruen, 4.
58
Urban
Land Institute,
Development Handbook, 1st ed., 3.
Shopping
Center
59 Halcyon Ltd., Retailing, 2.
60 Halcyon Ltd., Retailing, 2.
61 B. Berry, Geography of Market Centers and Retail
Distribution, (Englewood Cliffs: Prentice-Hall 1967), 3.
62 G.E. Weisbrod, R.J. Parcells, and C. Kern,
"A Disaggerate Model for Predicting Shopping Area Market
Attraction," Journal of Retailing, Vol. 60, No. 1, 1984,
66.
63 Berry, 3.
64 Glen E. Weisbrod, and Karl Radov, "Retail
Success or Failure--Any Connection to Market Studies,"
(Cambridge, Massachusetts: Cambridge Systematics, October,
photocopied, 2.
1984),
65 Halcyon Ltd., Retailing, 2.
66 Halcyon Ltd., Retailing, 2.
67 Halcyon Ltd., Retailing, 3.
68 Halcyon Ltd., Retailing, 3.
69 Stephen Karp, President of New England
Development, Massachusetts Institute of Technology Center
Lunchbox Series,
Estate Development, Rose
for Real
February 1990.
70 Karp.
71 Karp.
72 "Leslie Wexner Pushes Limited's Fast Growth
Despite Retailing's Ills," Wall Street Journal, 15 August
1990, A5.
73 Karp.
74 Wall Street Journal, 1.
75 Karp.
76 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 39.
Page 96
Frieden and Sagalyn, 123-4.
78 Frieden and Sagalyn, 138.
79 Jacques Gordon, "Horton Plaza, San Diego: A Case
Massachusetts
Public-Private Development,"
of
Study
Estate
Development
Real
Center
for
of
Technology
Institute
Case Study, December 1985, 107-8.
80 Frieden and Sagalyn, 193.
81 Halcyon Ltd., Retailing, 2.
82 Urban Land Institute, Shopping Center Development
Handbook, 1st ed., 12.
83 William S. Kowinski, The Malling of America, (New
York: William Morrow and Company, Inc.), 1985, 104.
84 Ibid, 104
85 Halcyon Ltd., "Cameron Village; Raleigh, North
(Hartford:
Carolina Memoradum,"
1990), photocopied, 10.
Halcyon
Ltd.,
30
May
86 Halcyon Ltd., Cameron Village, 10.
87 Halcyon Ltd., Cameron Village, 10.
88 Halcyon Ltd., Cameron Village, 13.
89 Halcyon Ltd., Cameron Village, 13.
90 Halcyon Ltd., Cameron Village, 13.
91 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 13.
92 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 13.
93 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 13.
94 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 13.
95 Urban Land Institute, Shopping Center Development
Handbook, 2nd ed., 13.
96 Meredith L. Clausen, "Northgate Regional Shopping
Center-Paradigm
From
the
Provinces,"
Journal
of
Architectural Historians, Vol. XLIII, No. 2, May 1984,
160.
Page 97
97 Clausen, 160.
98 Clausen, 160.
99 Urban Land Institute, Shopping Center Development
Handbook, 1st ed., 16.
100 Frieden and Sagalyn, 1.
101 Frieden and Sagalyn, 312.
102 Halcyon Ltd., Retailing, 3.
103 Halcyon Ltd., Retailing, 3.
104 Chain Store Executive, 60.
105 Chain Store Executive, 60.
106 Chain Store Executive, 60.
107 Chain Store Executive, 60.
108 Kowinski, 233.
109
"The Atrium:
21st Century Shopping Center:
Chestnut Hill Project Brings New Look to Massachusetts
Market," Chain Store Executive, Vol. 64, May 1988, 145.
110 Chain Store Executive, May 1988, 145.
111 Chain Store Executive, May 1988, 145.
112 Chain Store Executive, May 1988, 145.
113 Melvin Simon & Associates, Inc., "Gateway to the
West,"
Simon
Developments,
(Indianapolis:
Privately
printed, 1990), 18.
114 Melvin Simon & Associates, Inc., Scottsdale
Galleria, (Scottsdale: Privately printed), 1990, 13.
115 Melvin Simon & Associates, Inc., Scottsdale
Galleria, 13.
116 Melvin Simon & Associates, Inc., Scottsdale
Galleria, 14.
117 Melvin Simon & Associates, Inc., Scottsdale
Galleria, 14.
118 Melvin Simon & Associates, Inc., Scottsdale
Galleria, 5.
119 Melvin Simon & Associates, Inc., Gateway,
18.
Page 98
120
Galleria,
121
Village,
122
Melvin Simon & Associates, Inc., Scottsdale
5.
Toombs Development Company, Princeton Forrestal
(Princeton: Privately printed), 1990, Al.
Toombs, A2.
123 Toombs, A4.
124 "Anchorless Centers," Chain Store Executive, 59.
125 "Anchorless Centers," Chain Store Executive, 59.
126 International Council of Shopping Centers,
Shopping Center Operating Cost Analysis Report 1987,
York: Privately printed, 1987), 1.
127 International Council of Shopping Centers,
Shopping Center Operating Cost Analysis Report 1989,
York: Privately printed, 1989) 1.
128 Halcyon Ltd., Retailing, 1.
129 Halcyon Ltd., Retailing, 1.
130 "MCA Faces The Future," Premiere,
ICSC
(New
ICSC
(New
August 1990,
84.
131 Halcyon Ltd., Retailing, 1.
132 Premiere, 84.
133 Halcyon Ltd., Retailing, 1.
134 Kowinski, 233.
135 Halcyon Ltd., "Strategic Planning: Fresh Place",
Hartford: Halcyon Ltd., 1990, 1.
136 Halcyon Ltd.,
"Strategic Planning for Asset
Appreciation", Hartford: Halcyon Ltd., 1990, 1.
137 "Anchorless Centers," Chain Store Executive, 59.
138 "Henri Bendel drops
31 July 1990, 8.
Page 99
anchor," The Brookline Tab,
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