Bob Andelman Articles
Archive
Tampa Bay Retailers
and Malls Turn to Renovation
By Bob Andelman
(Originally published
in Shopping Centers Today, 1993)
Many factors can push mall managers and owners toward costly,
time-consuming renovations. But in Tampa these days, there's
only one reason: competition.
West Shore Plaza was first, putting contractors to work in 1992
on a $9-million interior facelift. As that job drew to a close
this spring, University Mall dropping its "Square"
middle name in the process started work on a $6-million renovation
and modernization to be followed by expansion in 1994. And Tampa
Bay Center plans to freshen up with new colors and lighting.
In a market notable for being fairly static, the simultaneous
rush to upgrade could be written off to naturally occurring factors,
except that the real gun to their head is a new mall on the horizon.
Brandon Town Center, a proposed 1.1-million-square-foot regional
mall, looms large in Tampa's future. After years of delay, it
may actually break ground this fall, further putting squeezing
market share.
Adding to the apprehension
of some: Petrie-Dierman-Kughn's intention to start construction
next summer on the Great Mall of Tampa Bay, 1.3-million square
feet located directly across Interstate 75 from the Brandon Town
Center site. Great Mall will be a gathering of 10 category killer
anchors and 195 in-line, value-oriented retailers. Its opening
especially if it occurs concurrently with Brandon Town Center
could pinch malls as far as St. Petersburg, Clearwater and Lakeland.
Outlet malls have a demonstrated drawing power in the market.
Bay Area Outlet Mall in Clearwater has operated at a high occupancy
since opening eight years ago and is aggressively selling out-parcels,
most recently to Homelife (Sears) and Ruby Tuesday's. And in
Ellenton, the year-old Gulf Coast Factory Shops added 35 new
shops in August.
One need not look far to calculate the intensity of competition.
Tampa's Eastlake Square is a mere shadow of its former self,
fighting a losing battle with University, pre-renovation, and
facing a bleak future as the closest mall to the proposed Brandon
and Great Mall locations.
"I think University is going to lose 25 percent of their
business to Brandon. They're going to get clobbered," says
Michael Barry, group manager/State of Florida for The Rouse Company.
"What's going to happen to Eastlake when Brandon Town Center
comes up?"
Across the bay in Pinellas County, the three largest malls Clearwater,
Countryside and Tyrone Square all completed major renovations
in the last three years, whipsawing hapless Pinellas Square into
submission and forcing the exit of marginal national and local
retailers. Like Eastlake, Pinellas Square's future is bleak.
For those who invest in upgrading facilities, the payoff appears
to be more customers, double-digit sales increases and better
tenants. Tampa Bay's demographics attract finer retailers but
they're put off by aging malls. Macy's flirts with the region
on occasion but to date has only placed a closeout outlet in
a former Ames location. And that's next to struggling
Pinellas Square Mall.
West Shore Plaza, a constant target of Macy's rumors, originally
proposed to double-deck itself but settled for improving what
the 26-year-old mall already had. New skylights, marble floor
surfaces, towering palm trees and tile fountains highlight a
Spanish/Mediterranean flavor. Mall entrances were upgraded and
a three-story bell tower was created to identify the mall from
miles away.
"It was time," says Debra Faulk, marketing director
for the Plaza. "The overall game plan was to re-merchandise
the center."
Improvements were completed in May. New tenants include The Icing,
Cache, Gymboree, Barnie's Espresso Cafe, Mother's Work, Natural
Wonders and Audrey Jones. The Bombay Company closed its original
location and reopened in double the space as a superstore. Burdines
and Dillard completed interior renovations simultaneous with
the mall.
"Traffic has been way up," says Tom Wilder, president
of Wilder Management. "Leasing interest is up. Sales are
up."
In January, West Shore Plaza will play another card. Original
mall tenant Woolworth found at center court will depart by mutual
agreement. Its space will be leased to up to nine specialty tenants.
And there's still loose, unsubstantiated talk of adding a fourth
anchor.
"The renovation was only the first phase," Wilder says.
"The new owners (Grosvenor International bought West Shore
Plaza in 1990) have a long-term commitment. They are considering
expansion; we're still in the planning stage. We're talking to
a number of high-end department stores. Going double-deck is
still an option. But we acquired some property adjacent to West
Shore which is easier and more economical than going double-deck.
Meanwhile, 18-year-old University Mall acquired by Heitman Retail
Properties from the DeBartolo Corp. in 1992 is enmeshed in an
ambitious effort to not just reshape the physical plant but to
refashion its marketing position as well.
Outside, the center is being spruced up with new landscaping,
signage and logos, but the most stunning changes can be found
at its entries. Each is now identified by a Flash Gordon-style,
50-foot light tower intended to steer customers, day or night.
"This mall had never been renovated," says Pat Severance,
vice president and regional director of leasing for University
Mall's parent company, Heitman Retail Properties. "It was
time to get away from earthtones. The ceiling was water-spotted.
In order to enhance the value, to bring the tenants we want,
something had to be done."
Inside, University is cutting down on visual and physical clutter.
Gone from center court is a monstrosity of ramps and landscape
that made it impossible to see Burdines from Dillard or walk
directly across. "We defoliated it," Severance says.
It's gone. Also eliminated from the mix: kiosk and cart overload.
"When I took over, there were 19 of them," Severance
says. "They make it difficult to see and you end up cannibalizing
sales of the in-line tenants. And we want strong in-line tenants."
Following the lead of West Shore, Countryside and Tyrone Square,
University Mall has let the sun shine in through a series of
new skylights.
What makes the work at University all the more intriguing is
that leasing has never been a problem here. In fact, there's
usually a substantial waiting list for what few spaces ever come
open. That's why the renovation is tied into expansion.
Sometime soon, Dillard is expected to start construction on a
new, two-floor pad site directly behind and adjacent to its current
location. When that store opens fed by a new multi-level parking
garage the existing one will close and be transformed into in-line
tenant space downstairs, a food court and up to a 20-screen Cobb
Theater complex upstairs. Besides creating new opportunities
for small retail in the old anchor site, the expansion will relocate
and consolidate all existing food vendors to the food court,
opening their old spaces for new retail. And the four existing
movie screens two at the mall's front entrance, two at the back
will create several additional, spacious opportunities.
There are five food vendors vying for each space in the planned
food court. Musicland signed a lease for 6,300 square feet in
the new space. Victoria's Secret intends to double its size by
moving. Finally, Burdines will use the occasion to renovate its
current store.
"The tenants we want would not go into an antiquated center
when there are new centers coming into the market," Severance
says. "We felt we could make this mall stronger by the time
Brandon Town Center goes on line."
end
©2000, All rights reserved. No portion
may be reproduced without the express written permission of the
author.
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