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IN BUSINESS LAS VEGAS | 1AMAY 20, 2005 ICSCSPublisher Bruce Spotleson, 990-2442, [email protected] & CREATIVE

GREENSPUN MEDIA GROUP

CIRCULATION

Creative Director Scott Lien, 990-2430, [email protected] Advertising Creative Director Thomas Jackman, 990-2458, [email protected] Bradley Samuels, 990-2521, [email protected] Executives Debbie Donaldson, 990-2457, [email protected] Hilary Scott, 990-2502, [email protected] Michael Skenandore, 990-2508, [email protected] Carol Skerlich, 990-2503, [email protected] General Advertising Information Janine Wells, 990-2486, [email protected]

Chairman Daniel A. GreenspunPresident Michael T. Carr

Circulation Director Ron Gannon, 990-2420Client Relations Rhona Cameron, 990-2521Subscription Director Jackie Sieta. 990-2431

Special Publications Editor Rob Langrell, 990-2490, [email protected] Special Publications Administrator Terry Martin, 990-8170, [email protected] Writers Danielle Birkin, Damon Hodge, Lisa McQuerrey, Deborah Roush

Dear In Business Las Vegas readers:

Marcus & Millichap is proud to be a part of the Las Vegas community, sharing in its dramatic growth and suc-cess. Las Vegas continues to attract high investor demand for commercial and residential real estate. Job growth and in-migration will continue in 2005. Employment growth is forecast to reach 4.5 percent this year, while popula-tion will expand by 4.1 percent. These positive economic

and demographic trends are attracting capital from local, regional and national investors from both the private and institutional arenas. We expect vacancies to improve in all of the commercial real estate sectors, including retail, office and multi-family.

Marcus & Millichap Real Estate Investment Brokerage Company is the pre-mier provider of investment real estate brokerage services, closing more deals annually than any other firm. One of the key advantages we deliver to clients is our ability to access the largest pool of qualified private and institutional inves-tors. By combining superior local market expertise, an extensive network of re-lationships with buyers and sellers, and the industry’s most powerful marketing platform, our Las Vegas investment professionals can help investors to access investment properties and capital sources locally, regionally and nationally.

Our exclusive inventory of investment properties is recognized for its size, diversity, quality, deliverability and underwriting standards. In addition, Marcus & Millichap has a long and successful track record of helping clients navigate the requirements and timing issues associated with tax-deferred exchanges. Inves-tors have come to rely on Marcus & Millichap for access to investment opportu-nities that meet their specific requirements, including demands driven by 1031 exchanges.

In today’s dynamic marketplace, an improving economy, strengthening property fundamentals and the prospect of rising interest rates are prompting property owners and investors to take action and position themselves for the next cycle. For assistance with formulating and executing your investment strat-egies, please contact a Marcus & Millichap investment specialist to receive the latest market research reports or more specific property-level feedback.

Christopher E. LoBello, Regional ManagerMarcus & Millichap Real Estate Investment Brokerage Company

Dear readers,

Welcome to the annual get together of the International Council of Shopping Centers and the special section we publish each year in conjunction with the convention. Approximately 36,000 people gathered here for last year’s event and even more are expected for the 2005 affair that begins this weekend. I want to thank the Carina Corporation and Marcus &

Millichap for returning to again sponsor this special publication to In Business Las Vegas. They both have a variety of big things in the works for this year. In this section, we offer a little something for everyone. There’s appeal for businesspeople in town solely for the convention, locals who will be fortunate enough to be part of the festivities at the five-day event and subscribers to In Business who just want to keep up with the action. We examine some of the hot new projects in the Valley, which include East Village and the Village at Centennial Springs. And it wouldn’t be booming Las Vegas without expansion. That’s just what the Forum Shops, Fashion Show Mall and The District have had on their plates over the last 12 months. Additionally, you will find Question & Answer sessions with a few of the city’s top commercial real estate executives. For the convention goers, we have provided a schedule of the week’s events, along with information on the spouse’s program. There is also a section on ICSC memberships.

The theme of this year’s spring convention is “Back To Business.” And with that, the focus of the week’s sessions has been placed on education, networking and deal making.

What better place to do that than in Las Vegas.

Rob LangrellEditor of Special Publications

From the editor

Dear In Business Las Vegas readers:

Being a real estate developer in Las Vegas is akin to being a fashion designer in Paris, an aerospace engineer for NASA or an automobile manufacturer in Detroit It’s exciting, it’s competitive, it’s fast-paced and it’s dynamic. As one of the country’s fastest-growing metropolitan areas, Las Vegas offers developers – and their customers – a myr-iad of opportunities to think and act outside the box.

Just over one year ago, we announced plans for our first urban village – The Village of Centennial Springs. Today, this 41-acre suburban mixed-use project is already underway, and by the end of 2005, Centennial Springs will be home to its first residents and retail tenants desiring to live in a place that feels like the neighborhood in which they grew up.

At Carina Corporation, we believe today’s homebuyers are longing to re-con-nect with neighbors and neighborhoods while still enjoying access to modern-day conveniences and the latest and greatest technology. The Village of Centennial Springs is being built to deliver that unique combination of small town charm and intimacy within a high-tech and sophisticated framework A place where the corner coffee shop, the community bookstore and the friendly neighborhood dry cleaner are as central to the fabric of the community as the homes, the parks and the schools. It’s an acknowledgement that during a time of “bigger is better,” the “Mom and Pop” feel of the locally-owned restaurant or boutique is making a comeback.

As Carina has embarked on the development of The Village of Centennial Springs, in which retail will play a central role, we are proud to sponsor the In-Business International Council of Shopping Centers special section. We salute the developers of retail centers – large and small – throughout our bustling valley. And we look forward to continued prosperity for our community’s thriving and growing retail industry.

Mark DoppePresident, Carina Corp.

Marcus & Millichap From the sponsors

Carina Corporation

EDITORIAL

4A | IN BUSINESS LAS VEGAS MAY 20, 2005ICSC

FRIDAY, MAY 208 a.m.-4 p.m.: Exhibitor registration

SUNDAY, MAY 22 8 a.m.-10 p.m.: Badge validation at satellite locations 9 a.m.-7 p.m.: Registration and badge vali-dation at L.V.C.C.9 a.m.-7 p.m.: Welcome center and design trends open 9 a.m.-4 p.m.: Spouse hospitality lounge 9 a.m.-Noon: CLS test review course 9 a.m.-12:30 p.m.: CLS examination 9 a.m.-1 p.m.: CSM/CMD test review course 10:30-11:30 a.m.: welcome to Las Vegas: First-timers orientation Noon-1 p.m.: ICSC networking brunch1-2p.m.: Convention opening session with guest speakers2-6p.m.: Trade exposition and public sector showcase open 4:30-6 p.m.: Open house and public sector reception in the trade exposition 6-7:30p.m: Welcome reception at the Las Vegas Hilton pool 10 p.m.-Midnight: Next Generation recep-tion (Skin nightclub at The Palms)

MONDAY, MAY 236 a.m.-2 p.m.: Badge validation at satellite locations 6 a.m.-6 p.m.: Registration and badge vali-dation at L.V.C.C.6 a.m.-6 p.m.: Welcome center and design trends open7 a.m.-6 p.m.: Spouse hospitality lounge 7:30-8:30 a.m.: Women in real estate net-working breakfast8-9 a.m.: continental breakfast served in trade exposition8 a.m.-6 p.m.: Leasing mall, trade exposi-tion and public sector showcase opens10-11:15 a.m.: Blockbuster general session — Progress for partnerships 11:30 a.m.-12:15 p.m.: Red tape or green light for development — Public sector networking12:30-1 p.m.: Luncheon served1-2 p.m.: Luncheon presentations and guest speaker2:30-4 p.m.: Concurrent sessions A. Joint venture development — Putting the pieces together B. Grocery wars: shaking the foundations of our industry C. Is retail still the darling of the real estate industry?

D. Playing nice in the sand box: Good part-nerships make deals happen4:15-4:30 p.m.: Annual meeting of members

TUESDAY, MAY 247 a.m.-6 p.m.: Welcome center and design trends open 7 a.m.-6 p.m.: Registration and badge vali-dation at L.V.C.C.7 a.m.-6 p.m.: Spouse hospitality lounge 7:30-8 a.m.: Breakfast served 8-8:45 a.m.: Breakfast presentations and guest speaker 9 a.m.-6 p.m.: Leasing mall, trade exposi-tion and public sector showcase open 9:15-10:30 a.m.: Concurrent sessions A. Open-air Centers 2005: The game show B. Retailing and the new consumer power C. Emerging international retail markets: Who is recognizing this opportunity?11 a.m.-12:15 p.m.: Blockbuster general session – 3rd annual Hot Retailers awards 12:30-1:15 p.m.: Luncheon served 1:15-2:15 p.m.: Luncheon presentations and guest speaker 2:30-4 p.m.: Concurrent sessions A. The art of international retailing — Cur-rent and future trends B. Big risks, big rewards: Opportunities in mixed-used development and lessons learned C. Industry icons and their next generation D. Eliminating big problems with Big Box Development 5:30-8 p.m.: Diversity reception (Fountain Terrace, Four Seasons Hotel)

WEDNESDAY, MAY 258:30 a.m.-5 p.m.: Welcome center and design trends open 8:30 a.m.-5 p.m.: Registration and badge validation at L.V.C.C.9 a.m.-5 p.m.: Leasing mall open 9 a.m.-Noon: Spouse hospitality lounge 9:30-11 a.m.: Workshops — Small interac-tive group discussions led by facilitators who are industry specialists. A variety of topics will be offered and will include: • Financing • Leasing • Marketing • Management • Public/Private Partnerships • Retailing • Development • “How to Approach a Retailer”

icscConvention CalenderPROGRAM-AT-A-GLANCE

IN BUSINESS LAS VEGAS | 5AMAY 20, 2005 ICSC

Convention Calender


Fashion Show Mall situated at city’s intersection of successBy Damon HodgeStaff writer

While the Flamingo Road-Las Ve-gas Boulevard intersection is the origi-nal “four corners” and the Tropicana Avenue-Strip nexus has been dubbed the “new four corners,” future genera-tions might refer to the boulevard’s junction at Spring Mountain as the “best four corners.”

Consider: There’s the hip T.I. (for-merly Treasure Island) on the south-west edge; the $1.7 billion Palazzo will soon join the swanky Venetian to the southeast; the world’s most expensive hotel-casino, the $2.7 billion Wynn Las Vegas, commandeers the northeast sec-tor and the northwest corner is home to the Fashion Show Mall. Plus, Donald Trump has planned a $300 million con-

dominium tower just to the north.The Fashion Show Mall, anointed

by Steve Wynn as “the most unique shopping center in the world,” is argu-ably the biggest beneficiary of the geo-graphical changes. Its restaurants teem with customers — revenues are up 30 percent in some eateries — and stores jam-packed with patrons. Mall execu-tives attribute much of the increased business to the recently opened 2,716-room Wynn Las Vegas.

Since the resort opened April 28, the average foot traffic at the mall has grown 20 percent.

“Wynn’s opening has really ex-tended the heart of the Strip, which was always south of us,” Fashion Show General Manager Jared Chupaila said. “Spring Mountain was always a bound-ary for us but Wynn has broken that

boundary. (As a result) other areas of the mall have seen increases as well.”

Chupaila also credits a $1 billion renovation and expansion completed in 2003 with enabling the mall to meet heightened demand. The first phase added to the property’s west side nearly 900,000 square feet of retail space and the 800-foot-long Great Hall for entertainment events); an eastern renovation added 117,000 square feet of retail space, a third-floor food court with Strip views and a Strip-front promenade featuring “The Cloud,” a 400-foot-long multi-media canopy sus-pended above a 72,000-square-foot plaza.

At 1.8 million square feet, with eight anchor tenants, 230 stores (in-cluding names such as Abercrombie & Fitch, Ann Taylor Loft, Apple Comput-

er, Claire’s Boutique, Cinnamon Girl, Guess, Island Pearl, Lucky Brand and Stefanel) and six restaurants (nine if you count Neiman Marcus’ two eater-ies and Nordstrom’s café), Chupaila says, Fashion Show the largest retail destination in Nevada and one of the largest in the western United States. In 2004, the mall generated $700 of sales per square foot, twice the nation-al average.

“We’ve surpassed our expectations on returns from expansion and rede-velopment. I’m not surprised at Fash-ion Show’s success because of our mix of offerings. We service our own piece of the Strip, so we get the tourists, but with we also attract locals, whereas our competitors are more tourist ori-

See FASHION, Page 7A


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ented,” Chupaila said.Among the mall’s biggest coup was

landing Seattle-based Nordstrom’s first Nevada location and the first Bloom-ingdale’s Home, a 100,000-square-foot concept store offering housewares, fur-niture, and other interior design prod-ucts and services. (Bloomingdale’s is a division of Cincinnati-based Federated Department Stores).

Julie Reynolds, director of public relations for Bloomingdale’s Home, says the chance to have a Strip ad-dress was enticing.

“The Fashion Show is such a great mall, it’s in a fabulous location and is consistent with our brand-right image, so we felt it was the right mall for us”

Reynolds said. “We’re thrilled with all the continued efforts to upgrade the mall and all the foot traffic — these people are becoming our customers.”

One such innovation is The Cloud. Says Chupaila: “It catches your eye and draws your attention ... it’s really an iconic piece of architecture and

FASHIONFrom Page 6A

serves to expand the use of the prop-erty out to Las Vegas Boulevard. But it also acts a shade canopy, enabling the customer to enjoy the outdoors in spite of intense elements. And we’re still growing under the plaza, adding further retail components.”

Equipped with high definition video displays, sound system and a catwalk, the Great Hall can host ev-erything from product demonstrations to fashion shows, all of which can be shown on The Cloud’s LED screens. Think of it as the mall’s version of the Bellagio Fountains, Mirage volcano or T.I.’s pirate battle. “It helps pull traf-fic off Las Vegas Boulevard,” Chupai-la said. “It really brings our retail to life.”

Should all that shopping makes you hungry, Fashion Show has a hand-

ful of quality restaurants, including, Cafe Ba Ba Reeba!, The Capital Grille, Maggiano’s Little Italy and RA Sushi Bar Restaurant. Chupaila says the new restaurants complete “the shopping experience.”

The decision to expand to Las Ve-gas looks better every day, according to John Gerarde, general manager of Maggiano’s Little Italy, a Chicago-based chain serving traditional southern Ital-ian cuisine (eggplant parmesan, roast chicken, gnocchi). Since the restau-rant opened in October, business is up 30 percent, largely due to Wynn Las Vegas. If it’s not Wynn guests coming to dine, it’s locals, headed to Wynn for a look-see — many coming for a pre- or post-tour meal. Initially, the restaurant

See FASHION, Page 8A

“We’re thrilled with all

the continued efforts to

upgrade the mall and all

the foot traffic — these

people are becoming

our customers.”

8A | IN BUSINESS LAS VEGAS MAY 20, 2005ICSCFASHIONFrom Page 7A

goers were 70 percent to 30 percent locals to tourists, but the mix is now 55 to 45, Chupaila says.

“We’d been looking at Las Vegas for quite some time and felt that a Strip location would be best, plus we knew what was coming on down the road (with Wynn Las Vegas, Palazzo and Trump tower),” Gerarde said. “Since all our food is from scratch, we’ll never ever be on every street cor-ner. We open three properties a year in major cities (the Vegas restaurant was the chain’s 32nd). Our first seven months in operation justified the deci-sion to come to Las Vegas.”

This time next year, Fashion Show could be in the midst of another ex-pansion. Shortly after Chicago-based General Growth Properties bought the mall (and the master-planned Sum-merlin community) from Columbia, Md.-based The Rouse Co., for $12.6 billion in November, a company offi-cial announced plans to seriously look at future growth and opportunities. They include possibly building residen-tial towers, a hotel or a casino.

Chupaila said he is excited, what-ever the future holds.

“Going forward, we’re going to con-tinue to re-merchandise the center ... success provides opportunities for more success,” he said. “We’re exploring the opportunity to expand vertically, but more immediately we’ll work on com-pleting the extension of Las Vegas pe-destrian bridge from Wynn Las Vegas.”


&By Lisa McQuerreyContributing writer

Zack Hussain, an associate with CB Richard Ellis, focuses on retail tenant and landlord representation. Hussain, who joined CBRE in 2003, serves clients by understanding their crucial business needs and determining how their strate-gic business goals can be accomplished through their real estate objectives.

Hussain’s “single point of contact” service allows organizations the ease of conducting all of their real estate trans-actions globally form the central location of Las Vegas. He took a few minutes recently to discuss the market here.

What do you see as the prevailing influencers of today’s local commercial/retail market?

The major issues are scarcity of land and cost of land. Today developers have to reevaluate what is the best use for our limited resources, because gone are the days when you can just buy land and put in a strip center. With today’s conditions we have to look at putting the right product on a property.

What are the challenges associated with the prevalence of

mixed-use development?

Mixed-use is new to Las Vegas, but it’s not new to the rest of the country. It’s a complicated process. Retail has its own challenge, and now you’re mixing in office and residential and it becomes a totally different game. The District was the first local mixed-use project and now we’ve got a slew of incredible new projects coming online. We’re seeing much more complexity of design and use. The market has matured and that’s put confidence in national retailers.

In what way will the development of high-rise condos

impact the retail market?

Most, if not all of the high-rise con-do projects will have a retail component on the ground level to serve immedi-

ate retail needs. Retail with condo is a whole different type of retail because there’s a different demographic. Who lives in those condos will shape what type of retail goes in there.

Are rising land costs deterring retail development in any way?

I don’t think so. There are so many other factors here that encourage development. Retail is strong and retail is extremely underserved. Vegas is a dif-ferent animal. We’ll see another record breaking year for tourism, and that has a considerable impact. Las Vegas is mak-ing its mark as a shopping destination and that elevates the standards of retail.

Are we seeing much retail and commercial redevelopment in older

areas of the city?

Big box anchors are moving out of what used to be thriving commercial centers and developers are seeing the value in that land. They’ll bring in more mixed use projects. Vegas is always reinventing itself. Just a few years ago people were scared to put up com-mercial centers and now we’re seeing billions of dollars being invested. That confidence will continue growing.

What are the factors that continue attracting retail development to

Southern Nevada, in spite of rising land costs and a dwindling

availability of land?

The economy, our population explo-sion, job growth and tourism are a few. Las Vegas is changing from a town into a city and it’s truly becoming a wonderful city. Retailers are willing to pay higher rents because of the lack of competition.

What does the future of local re-tail and commercial development

look like?

Mixed use will define the future of Las Vegas’ retail market. We’ve got Town Square, East Village, St. Rose and Seven

Hills, the northwest and Tropicana and Paradise, the Harmon Corridor. The southwest Beltway will see an explosion of commercial development. Also Blue Diamond and Industrial, the north and northwest. North Las Vegas is the hot-test area with the lowest vacancy rate right now. High rise condos will change the way tourists and locals interact and we’ll see more open-air community services. Our market will continue to mature and we’ll see more complex, quality projects. Developers are looking to create a legacy. We’re going back to square one — old school. What do we do with our remaining resources? We’re not just making stucco boxes.

QAwith Zack Hussain


By Deborah RoushContributing writer

Cary Andrews, 38, of Little Rock, Ark., is “tagging along” with her husband later this month when he is here for a

business convention. A first-time visitor, tops on her list of places to see is the Fo-rum Shops at Caesars.

“I’m looking forward to the fun and excitement of Las Vegas and a friend told me about Forum Shops so I looked them

up on the Internet,” Andrews said. “I’m going to shop for brand names we don’t have in Little Rock — like Kate Spade. I heard they recently added one of her stores.”

Andrews will be one of more than

18 million people this year to visit Si-mon Property Group’s Forum Shops, the most successful shopping center in the United States offering luxury retail

Expansion keeps Forum Shops atop the list of ‘Most Successful Malls’

See FORUM, Page 11A


and restaurants. According to Stacey Szluki, a spokes-

person for the International Council of Shopping Centers, the national average of sales per square foot for enclosed shopping malls was $366 in 2004.

At the 685,000-square-foot Forum Shops it was about four times that, said Maureen Crampton, the mall’s market-

ing director.“We reported just over $1,400 per

square foot in the year ending 2004 and the latest report for March shows that the annualized figure per square foot this year is up to $1,453,” she said.

Crampton credits the 175,000-sqa-re-foot, three-level expansion the mall completed late last year with part of that success. “You would have thought that by adding the square footage we would

FORUMFrom Page 10A

See FORUM, Page 12A


have diluted our numbers, bringing them down. But we brought in some great per-formers with the expansion and it has strengthened (our performance),” she said.

The third expansion since it opened in 1992, this latest construction included

the addition of 60 upscale specialty retail tenants and several new restaurants. The classic Roman architecture that Caesars is recognized for is continued in the ex-pansion, which now also boasts a pedes-trian plaza and signature entrance on Las Vegas Boulevard.

When the most recent expansion plans were announced in early 2003, Crampton said there was a waiting list of retailers looking for space. “We were in an enviable position based on the strength of our successes that so many retailers came to us, including many international (companies),” she said.

“Our leasing experts did pursue some retailers ... but it was in catego-ries where we would try to fill a void,” she added.

Many of the shops that moved in are new to Las Vegas or to the United States. Playboy, for example, that pre-viously only had stores in Hawaii and Europe, now promotes a new ready-to-

wear line of clothing at its new store at The Forum Shops.

Juicy Couture, which formerly sold product solely within department stores, branched out with its first free-standing, independent shop at The Forum Shops. “I just talked to a representative from Juicy and their product is so hot, and with the influx of the tourists and their name recognition around the world,

they can’t keep inventory in the store,” Crampton said.

Other stores, like Victoria Secret, Louis Vuitton and high-end watch re-tailer Tourneau, expanded the presence they already had at the luxury mall.

“Victoria Secret now has a wonder-fully large space with different boutiques within the store. One boutique focuses on bridal lingerie. It’s interesting to see how retailers reinvent or remarket them-selves to fill the need here, like Las Ve-gas and the wedding thing,” she added.

Louis Vuitton has tripled in size, opening its new Global Store with a full range of product lines and Tourneau in-creased in size from 1,036 square feet to 13,410 square feet.

Who’s shopping at these new and bigger stores? The same customers who loved the old ones.

Eighty percent of shoppers are tour-ists, according to Crampton. “Our cus-tomer base is so influenced by the in-

ternational customer; the top three are the Pacific Rim or Far East customer, the Latin American customer and then the UK customer. All of them have such large disposable incomes and they come to Las Vegas to spend it,” she said.

Of the 20 percent of locals who shop at The Forum Shops, most are re-peat customers. “And our average per-son spends about 120 minutes here. Our entertainment features, like the Festival Fountain and Atlantis show, are so im-portant. People will stop to see them then grab something to eat afterward. Or shop while they wait for a show,” she said.

And so many celebrities shop at the Forum Shops the marketing department distributes a list of who has been spotted at the mall on the back page of its in-house newsletter. Recent sightings include Robert Du-val, Bill Clinton and fighter “Sugar” Shane Mosley.

“Our stores are very savvy to the needs of a celebrity; they’ll be brought in or taken out through a back door and we’ll bring additional security in,” she said.

To attract more shoppers, The Fo-rum Shops targets its audience primari-ly in tourist publications, in hotel rooms, at the airport and through airline maga-zines. “We have travel and tourism rela-tionships abroad,” Crampton said.

And she doesn’t worry too much about the competition.

“I think with the existing shopping venues that are represented in Las Ve-

gas and particularly on Las Vegas Bou-levard there is a strong camaraderie between us,” she said.

“For example, when the Bellagio shops opened it increased our sales and traffic. The pedestrian bridge walkways are wonderful. And then Venetian’s Grand Canal Shoppes — they’re so close and they have things that we don’t’ have and (vice versa.) But it strengthens the retail perspec-tive here that is so key,” she said.

“Now one of the top three things reasons people visit Las Vegas for is shopping,” she added.

Crampton also credits the Las Ve-gas Convention and Visitors Authority of doing “a phenomenal job” promot-ing Las Vegas as a destination.

“You can come here and have a great three-day weekend and get away from it all — let your worries go by the wayside. You can dine at a res-taurant owned by a world-renowned chef and go to the Strip to make a purchase of something you might not have in your hometown. That’s what they market,” she said.

Crampton said there are no plans for another expansion at The Forum Shops, although there is land avail-able that would allow it. So where do they go from here?

“We can’t rest on our laurels from a marketing perspective,” she said. “This is such an active market. We have to be fresh and have a presence with our audience, which changes on average of every three days.”

FORUMFrom Page 11A


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Shopping Center DefinitionsThe term “shopping center” has

INTERNATIONAL COUNCIL OF SHOPPING CENTERS

The term “shopping center” has been evolving since the early 1950s. Industry nomenclature originally of-fered four basic terms: neighborhood, community, regional, and superregion-al centers. However, as the industry has matured, these four classifications are no longer adequate. To remove some of the ambiguity and accom-modate new shopping center formats, The International Council of Shopping Centers has defined eight principal shopping center types.

The definitions, and in particular the table, are meant to be guidelines for understanding major differences between the basic types of shopping centers. Several categories shown in the table, such as size, number of anchors, and trade area, should be in-terpreted as “typical” for each center type. They are not meant to encompass the operating characteristics of every center. As a general rule, the main de-terminants in classifying a center are its merchandise orientation (types of goods/services sold) and its size.

It is not always possible to precise-ly classify every center. Some centers are hybrids, combining elements from two or more basic classifications. Al-ternatively, a center’s concept may be sufficiently unusual as to preclude it from fitting into one of the eight gener-alized definitions presented here, and may ultimately lead to a new category as the industry continues to evolve.

Some types of centers are not sepa-rately defined here but nonetheless are a part of the industry. These can be considered subsegments of one of the larger, defined groups, perhaps created to satisfy a particular niche market.

BASIC DESIGN CONFIGURATIONS

Mall: The most common design mode for regional and superregional centers is often referred to as a “shop-ping mall.” The walkway or “mall” is typically enclosed, climate-controlled and lighted, flanked on one or both sides by storefronts and entrances. On-site parking, usually provided around the perimeter of the center, may be surface or structured.

Open-Air Center: An attached row of stores or service outlets man-aged as a unit, with on-site parking usu-ally located in front of the stores with common areas that are not enclosed, is often referred to as an “open-air center.” Open canopies may connect the storefronts, but an open-air cen-ter does not have enclosed walkways linking the stores. The most common

variations of this configuration are lin-

ear, L-shaped, U-shaped, Z-shaped, or cluster. The linear form is often used in neighborhood and community cen-ters. The cluster form and its variations have lent themselves to the emergence of new classes of centers such as the lifestyle center, in which the physical layout and open feel are differentiat-ing features. Historically, the open-air configuration has been referred to as a “strip center,” though the strip cen-ter got its name from the linear form, where stores sit side-by-side in a long and narrow row of stores.

Hybrid Center: A center that

combines elements from two or more

of the main shopping center types. Common hybrids include value-orient-ed mega-malls (combining mall, power center, and outlet elements), power-lifestyle centers (combining power center and lifestyle center elements), and entertainment-retail centers (com-bining retail uses with megaplex movie theaters, theme restaurants, and other entertainment uses).

SHOPPING CENTER TYPES MALLS

Regional Center: This center

type provides general merchandise (a large percentage of which is apparel) and services in full depth and variety. Its main attraction is the combination of anchors, which may be traditional, mass merchant, discount, or fashion department stores, with numerous fashion-oriented specialty stores. A typical regional center is usually en-closed with an inward orientation of the stores connected by a common walkway. Parking surrounds the out-side perimeter.

Superregional Center: Similar to a regional center, but because of its larg-er size, a superregional center has more anchors, a deeper selection of merchan-dise, and draws from a larger population base. As with regional centers, the typi-

INTERNATIONAL COUNCIL OF SHOPPING CENTERS

See DEFINITIONS Page 14A


cal configuration is an enclosed mall, frequently with multilevels. Parking may also be structured to accommodate the sheer size of the center.

OPEN-AIR CENTERS

Neighborhood Center: This cen-ter is designed to provide convenience shopping for the day-to-day needs of consumers in the immediate neigh-borhood. According to ICSC’s SCORE publication, roughly a supermarket anchors half of these centers, while about a third have a drugstore an-chor. Stores offering drugs, sundries, snacks and personal services support these anchors. A neighborhood cen-ter is usually configured as a straight-line strip with no enclosed walkway or mall area and parking in the front. Centers may have a canopy or other façade treatment to provide shade and protection from inclement weather, or to tie the center together.

Community Center: A com-munity center typically offers a wider range of apparel and other soft goods than the neighborhood center. Among the more common anchors are super-markets, super drugstores, and dis-count department stores. Community

center tenants sometimes contain val-ue oriented big-box category-dominant retailers selling such items as apparel, home improvement/ furnishings, toys, electronics or sporting goods.

The center is usually configured in a straight line as a strip, or may be laid out in an L or U shape, depending on the site and design. Of the eight center types, community centers encompass the widest range of formats. For exam-ple, certain centers that are anchored by a large discount department store often have a discount focus. Others with a high percentage of square foot-age allocated to off-price retailers can be termed off-price centers.

Power Center: A center dominat-ed by several large anchors, including discount department stores, off-price stores, warehouse clubs, or “category killers,” i.e., stores that offer a vast se-lection in related merchandise catego-ries at very competitive retail prices. The center typically consists of sev-eral anchors, some of which may be freestanding (unconnected) and only a minimum amount of small specialty tenants.

Theme/Festival Center: These centers typically employ a unifying theme that is carried out by the in-dividual shops in their architectural design and, to an extent, in their mer-chandise. Entertainment is often a common element of such centers, al-

though it may come in the shopping experience as much as in the tenants themselves. These centers are often targeted to tourists, but may also at-tract local customers who might be drawn by the center’s unique nature. Restaurants and entertainment facili-ties may anchor theme/festival cen-ters. Generally located in urban areas, they are often adapted from older, sometimes historic, buildings, and can be part of mixed-use projects.

Outlet Center: This center type consists of manufacturers’ and retail-ers’ outlet stores selling brand-name goods at a discount. These centers are typically not anchored, although certain brand-name stores may serve as “magnet” tenants. The majority of outlet centers are open-air, configured either in a strip or as a village cluster, although some are enclosed.

Lifestyle Center: Most often located near affluent residential neighborhoods, this center type ca-ters to the retail needs and “lifestyle” pursuits of consumers in its trading area. It has an open-air configuration and typically includes at least 50,000 square feet of retail space occupied by upscale national chain specialty stores. Other elements differentiate the lifestyle center in its role as a multi-purpose leisure-time destination, including restaurants, entertainment, and design ambience and amenities such as fountains and street furniture that are conducive to casual browsing. These centers may be anchored by one or more conventional or fashion specialty department stores.

Shopping Center Definitons

DEFINITIONSFrom Page 13A

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COVER IFC ICSC · 2019. 10. 13. · 4 MAY 20, 2005 ICSC IN BUSINESS LAS VEGAS | 1A Publisher Bruce...

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Transcript of COVER IFC ICSC · 2019. 10. 13. · 4 MAY 20, 2005 ICSC IN BUSINESS LAS VEGAS | 1A Publisher Bruce...