Established shopping center increases property value by 119%. Learn how.

University Park VillageFort Worth, TXCategory: Asset Services, Property Leasing, Urban

Challenge

University Park Village was one of the first lifestyle centers in the country when built in the mid-nineties. As changes occurred in the retail market, the center did its best to keep up with retail trends but struggled to find the right retail mix to please patrons, tenants and investors. In 2002, CBRE Urban took over leasing this property and began to strategize on ways to bring in new retailers to this market. In 2008, CBRE Asset Services was contracted to manage the property and consulted with the property leasing team on ways to increase value of the property for investors; a first leasing and management endeavor for both CBRE divisions and for the owner, Heitman.

Solution

Reshuffle the Retailers

To make the space more visually appealing and accessible to patrons, CBRE looked for ways to move tenants to more desirable locations. Moving and removing tenants would open up space for new tenants to come to the center. The team also evaluated spaces designed for certain tenants and strategized on ways to reformat these spaces to appeal to retailers from different sectors in the market.

Mix in Something New

Staying current on trends in retail, the property leasing team researched which upcoming and current brands would bring excitement to the center and the Fort Worth market. Their goal was to bring a higher level of retailer to the center and to focus on fashion-forward brands that were not already in the Fort Worth area to drive traffic to the center.

Make it Over

Asset Services strategized on ways to add value to the property through improvements to the facilities, routine inspections and need assessments, redevelopments and renovations to new and existing retail spaces.

Results

CBRE was successful in leasing the center to 100% occupancy.

  •  CBRE successfully took a vacant 5,500 square foot endcap restaurant space and  the assembled adjacent space and redesigned it to serve as fashion retail space. This vision and the highly visible location made it appealing for Anthropologie to select University Park Village for its first Fort Worth location.
  • CBRE achieved its goal of bringing the tenant mix to a higher level by leasing to popular brands like Apple, and fashion forward brands like Lululemon, J. Crew, Madewell, Vera Bradley and Free People. These brands also picked University Park Village as their first Fort Worth location.

Because of the renewed focus on the day-to-day operations of the center, many positive results ensued. After CBRE Asset Services was hired, the center:

  • Completed 23 lease transactions totaling 91,294 sf.
  • Increased occupancy from 82% to 100%.
  • Increased average tenant sales volumes from $430 psf to $750 psf.
  • Increased property value by 119%.

Lesson Learned

  • Synergy of a management and leasing team under one roof allows for better communication and collaboration of ideas to improve a property and increase sales volumes and property value.
  • Tenant placement and strategic remerchandising can increase occupancy and drive traffic to an older property.
  • New management can bring a fresh look at a property that has become complacent.

 

  • Retailers: Apple, Anthropologie, Pottery Barn, J. Crew, Madewell, Lululemon athletica, Williams-Sonoma, Victoria's Secret, Gap, Starbucks
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