Observations & Conversations
New York - Here we come!
It’s been a busy past few months. Ted was at the Atlanta show and Rich
Timlen, The Dealmakers’ editor, joined him in Chicago for the ICSC Midwest
convention. Then Ted and I went to San Antonio for the Texas Dealmaking followed
by a weekend in Dallas hanging out with our son and looking at shopping centers.
And in the in-between-time, we’ve been prepping for the NY show issue.
Considering how many of the same people one of the three us bumped into at these
last four shows, I know a lot of you folks have been spending your time at the
office and on the road the same way we do. Ted and Rich said the shows were
really good and I can vouch for the Texas show as being a winner too. My only
complaint with the Texas show was the setup of the retail runway. I know Ted
already voiced this complaint, but it’s such an essential part of any of the
shows that it warrants some extra space. All in all the shows are always
effective for us. Sometimes we don’t see the direct benefits for months, but I’m
learning in my middle-age that patience really is a virtue.
Our Texas trip was interesting. We started out with dinner at a local dive in
San Antonio. The table was decked out with two west coast developers, a national
leasing pro and two national retailers, along with Ted and myself. A little
business was discussed, but mainly we shared ideas and our personal take on
life. During the course of the evening we all talked how we got started in the
business, (mind you this is over bottles and bottles of Corona and I probably
drank more than my fill of margaritas) and none of us got here by design. It was
all just dumb luck or a turn of fate and none of us had any formal training in
real estate, beyond the requirements for a license. But there was probably about
80 years of combined experience in generating profits from retail space sitting
at the table. What I came away from the table thinking was most of us spend our
days dickering over money with each other and the better we negotiate the more
we’re worth, but at the end of the day most of us really define our value by the
company we keep when we’re not working. Fortunately the folks at this dinner
were the kind of people you want to spend time with when you’re off the
proverbial clock, so the trip to San Antonio was not only productive but
enjoyable too.
The convention floor was active. I met a few new retailers at the Texas show
that we’ll be reporting on in some upcoming issues. But on my tour of shopping
centers is Dallas, I came across an interesting concept. Well, thanks to my
son’s girlfriend’s suggestion we took a look at Sam Moon. As we’re driving down
the interstate, she gets this glint in her eye as we’re driving past huge
signage screaming www.SAMMOON.COM and then explains “they have the best knockoffs,
people stand in line to get in the store and it’s always crowded.” I’ve seen
this girl shop in New York City and she definitely has the skill set to know
what’s hot this season. So with that kind of recommendation, Joe Dyton, our
other editor did some research to find out who they are and we featured them in
this issue. The chain is growing and they also develop and acquire shopping
centers, so it’s not your run of the mill discounter. If you’ve got sites in
Texas, definitely check out the article, and if you’re the curious type and want
to see what’s happening outside of your market, it’s worth a read.
I came across a few more interesting retailers since last month. One is Dinner
By Design, a concept that allows customers to prepare 12 meals in two hours or
less to take home and put in their freezer with pricing of about $200 for 12
family dinners.T he chain uses around 1,600 sq.ft. in strip centers. It has about
30 units operating and plans to have a 100 franchises sold by early next year
with plans to grow in NY, NJ, IN, GA and AZ. You can check out their web site at
www.dinnerbydesignkitchen.com. Also worth mentioning is that Marianne/Marianne
Plus stores, an apparel chain specializing in clothing for Latino women in the
18 to 45 age group, is entering the CA, NV and TX markets. The chain is a
division of Urban Brands and sister to Ashley Stewart, a chain catering to
African-American women. Marianne currently operates in Puerto Rico, Miami, FL,
St. Thomas and St. Croix. So after their recent opening in Montebello, CA and
commitment to Brownsville, TX and Las Vegas, NV expect to see a lot more of them
in markets drawing a Latino customer. Another interesting concept for the NY
market is the Organic Umbrella. The concept offers a cafe specializing in an
organic menu with a retail section selling organic lifestyle and beauty
products. The company recently opened three locations, with two sites in
Manhattan and one location in Darien, CT. You can get more details at
www.organicumbrella.com. Another company jumping into the health conscience
market is Basha’s. It’s opening a new concept, Ike’s Farmer’s Market, a high-end
organic and natural food store during August 2006 in Phoenix, AZ in a space
formerly used as a traditional Basha’s supermarket that has been vacant for two
years since the company relocated one mile away.
Now it’s time for the Eastern States Dealmaking in New York City. The second
biggest shopping center event of the year! This show always has a bustling crowd
with high energy and boisterous voices. It’s exhilarating and exhausting, but I
wouldn’t want to be anywhere else. Shopping center pros from every coast and all
parts in between will be there, so if you haven’t planned to go I’d be checking
out last minute air fares, but you might have to reserve a room in Brooklyn at
this late of a date. Also, if you come in to the city on Sunday, definitely go
to the Barry Davis Benefit Dinner. It’s the best networking event at the show
and it’s in honor of a really great person. I’ve heard a few people say the
reason they didn’t go was because “they didn’t know Barry.” Well, I did know
Barry and he was an extremely jovial person, never had an unkind word, and was a
trust-worthy gentleman in every way. I did a little work for him, but we had
more conversations discussing his daughter and my son than on business over the
course of close to twenty years. He was one person I could always call and ask
“stupid questions” about retail real estate or vetted out industry rumors
without being worried that I’d be met with a condescending tone or that I would
be misinformed. That’s why I thought it was a great move that the proceeds from
this event go towards scholarships in education in retail real estate. So log
onto www.icsc.org and click current meetings then scroll down for the details or
call 646-728-3800.
Since this is my last column for 2005, I wanted to take a few lines to thank all
of our readers, advertisers, staff and friends. Have a wonderful New Year!
Until next month,
Ann O’Neal, Publisher