When you think about the business of retail, you probably wouldn’t pair the words “Retail” and “Science” together; maybe Retail and Consumer or Retail and Trends, but not Retail and Science.
One of the definitions of science is “a systematically organized body of knowledge on a particular subject,” such as “the science of criminology,” and in CBRE’s case, “the science of retail.” At CBRE, we don’t want to simply be retail transactional sales professionals. We want to understand all parts of the retail real estate business from the consumer to the owner to the analytical location data and everything in between.
With that, CBRE has created Retail Science. Simply put, Retail Science is CBRE’s use of research, location analytics and customized training to serve our retail clients as trusted advisors who understand all aspects of retail. CBRE wants to take that organized body of knowledge, information and resources available to us and figure out the best formula in which to use it, to ensure the best possible service and outcomes for our clients. We want to have the retail real estate practice “down to a science,” if you will.
What is the makeup of Retail Science? There are four pillars to CBRE’s platform – Research, Location Analytics, Education and Sales Training. Within these four pillars, CBRE professionals are equipped with the right research tools, industry data and specific ongoing education programs for the retail real estate industry, resulting in knowledgeable, trusted advisors for clients.
CBRE researchers and analysts are some of the most important people on the team. Their ability to gather and analyze industry information and provide expert reports to our sales professionals is unmatched. How do we make it even better?
With Retail Science, CBRE is expanding its research team and enhancing our approach by focusing on four key areas – placemaking; urban retail; food and beverage; and disruption, technology and innovation in retail. These focus areas allow our team to have a prominent voice on the state of the market and provide important information to clients on various industry-wide trends that are influencing different markets in the Americas.
Like research, Location Analytics provides important data, which aids in a sales professional’s ability to pinpoint positive areas of interest for a client. However, location analytics takes that data, analyzes it and then gives clients a visual representation of a market as a whole or of any specific location.
The Location Analytics pillar of Retail Science aims to harness the power of data to best advise clients on multiple aspects of their current and future store sites. To do this, CBRE utilizes two Geographic Information System GIS) technologies – Dimension and Forum Analytics’ SIMMS Online platform.
Dimension allows our professionals and clients to view, in digital-map format, multiple data points that influence their decisions about specific sites. Forum uses various data streams and proprietary-modeling techniques to generate precise forecasts of the results that clients’ store sites will generate. Simply put, Dimension showcases information about what’s currently happening in specific retail markets, whereas Forum allows clients to generate forecasts for what will happen in those markets in the form of performance forecasts for specific stores.
Dimension and Forum allow CBRE to continually and significantly enhance our use of data and market insight to benefit clients’ retail real estate needs.
The Education pillar provides CBRE professionals the opportunity to enroll in a first-of-its-kind program designed to enhance their knowledge of the business of retail and how those inner workings influence retailers’ real estate-decisions. The course material focuses on multiple aspects of retailers’ business models, both inward-facing to the retailer and outward-facing to the customer.
Some of those topics include product assortment, customer engagement, supply-chain management and sourcing. It’s not enough to only understand your side of the business. To truly serve the needs of your client, you must know every side. Industries are constantly changing, and ongoing education ensures professionals are up-to-date on the latest developments, new technology and best practices.
Strategic Advisor/Sales Training
CBRE facilitates a sales training program called Finishing First, which helps our professionals serve as trusted advisors capable of assessing needs and effectively outlining long-term solutions for them, rather than solely as vendors selling a one-time service. Finishing First often involves components from the Research, Location Analytics and Education pillars of Retail Science.
At CBRE, we want our professionals to be strategic advisors for our clients. We want to be able to diagnose client needs, both declared and undiscovered, and address those needs that build on advantage for them. The Retail Science platform educates and equips our professionals to do just that.
Retail Science is not a fancy tagline; it is CBRE’s value proposition for our retail professionals and it is the plan we have in place for our team to be excellent in all things retail. With Retail Science, we are excited and ready to enhance and refine the skills of our current team members and mentor and produce the next generation of top retail real estate trusted advisors.
Giving back to the community has always been a passion of mine, and I love hearing how my fellow colleagues are giving back. What’s even better is having the support of your own company behind you.
Last month, CBRE’s Chairman of Retail Services Americas, Mickey Ashmore, along with his wife Temple Ashmore, hosted the eighth annual “Retail as Art” exhibition at the Goss-Michael Foundation. “Retail As Art” is a scholarship contest designed to showcase the very best photographic interpretations of “Retail as Art” from Dallas-Fort Worth area high school students.
More than $22,000 in scholarship funds was awarded to 14 Dallas-area students. Claire Marucci of the Hockaday School won first prize, which included a $5,000 scholarship, for her work titled “Nocturnal Energy.” Over 300 attendees enjoyed hors d’oeuvres and other refreshments while mingling and viewing the participants’ photographs.
“Temple and I have always been passionate about education and the ability to help give young students the opportunity to pay for a quality education,” said Mickey Ashmore. “Having founded a retail real estate firm, I wanted to find a way to combine my passion for real estate and my family’s passion to help others. Thus Retail as Art was born.”
The purpose of the event is to showcase the best local photographic talent, celebrate and capture the true essence of retail and reward the winners and their schools for their talent and efforts.
The Ashmores created “Retail as Art” while at UCR and hosted the first “Retail as Art” invitational in 2008. The contest started small with only five student participants from one high school — Booker T. Washington School for the Visual and Performing Arts. This year, the entries grew to 124 students from 25 schools.
“I believe this year was the best year yet, and I look forward to growing the program in the future,” said Ashmore.
CBRE’s CBRE Cares program supports and leverages the passion and talents of our employees to create real benefit for individuals in need. Adding “Retail as Art” to our portfolio of community programs is an honor. With the support of CBRE’s expansive network, I imagine the “Retail as Art” program growing exponentially in the years to come. Congrats to all the winners who participated this year!
It’s been a little over a year since UCR joined forces with CBRE, a big step toward CBRE becoming the top name in retail. Fresh faces entered the mix and a new momentum has begun to build.
I sat down with our new Managing Director of Retail for the South Central United States, Daniel Taylor, to discuss the market and get to know him a bit more on a personal level.
A 16-year veteran of the industry, Taylor’s expert knowledge and fresh ideas have positively positioned the company for growth and profitability. Check out our Q&A below.
How long have you been with CBRE? Five years starting out on the CBRE side.
Why did you get into real estate? I’m a 4th generation Dallas real estate broker. Real estate is what my family talked about and still talks about at the dinner table. I never really considered any other career path. I love the thrill of the chase and working on behalf of a client aiding in their ability to reach business goals and ultimately affect their future success. I like the competition and the entrepreneurial aspect of retail real estate, and I enjoy interacting with the people in this industry.
What do you like most about working for CBRE? I love the people I work with. They are incredibly hardworking group of people and I’m lucky to be surrounded by such a talented group of professionals. I also appreciate the company’s current focus and commitment to the retail division. In the past, other divisions have required sizeable resources. CBRE has really gotten behind retail by investing money, technology, talent, etc. to ensure our success.
Where do you see retail heading in the future? I see consolidation amongst brokerage firms and omni-channel becoming a much bigger part of the retail spectrum. Urban street and retail environments are gaining more traction as opposed to suburban lifestyle centers, and large boxes will continue to right size. Class A fortress malls will remain strong due to high barriers of entry, but Class B- and C malls will continue to struggle.
What is your vision for CBRE retail moving forward? The company is strongly focusing on retail with a plan in place to aggressively grow our platform and brand. Additionally, we’re lucky to be in the market we’re in. Texas is consistently in the news, making headlines for its healthy economy and strong real estate market. We had a tremendous 2015 and anticipate an even better 2016 with the new resources CBRE is investing in for our retail division.
What does the DFW retail market look like currently/for the rest of 2016? The market is still strong. We’re still seeing new development but it’s tenant-driven versus spec. The companies moving to the area are spurring new residential development, which drives retail growth. The market should remain steady throughout 2016 and into early 2017, however the effects of this year’s election are unpredictable.
What about the region? We are carefully watching the price of oil and how it’s affecting Houston and Oklahoma, but Austin and Dallas continue to be on fire.
What is your greatest accomplishment thus far in the industry? Marrying my wife. She was an office broker when we worked together at The Staubach Company. My second greatest accomplishment was working on the Verizon account for 15 years. I started with them when they were occupying 2,500 SF in grocery centers and had only 6 different phones. Today, I manage the account in 4 states; they have doubled their size and moved into freestanding buildings; and now have more than 40 different types of devices. I’m also proud of bringing In-N-Out Burger to Texas.
What advice would you give someone starting out in the industry? Find a mentor. Work hard early in your career because the long hours you spend now will pay off later. Always be honest with your clients, even if it hurts. It’s easy to throw out half-truths to clients on a particular deal, but you will build a respectful, trustworthy reputation through transparency.
How do you spend your free time? Right now, my two little boys and my wife take up my free time, which I love. I also enjoy playing golf, basketball or fishing with friends.
What is your favorite restaurant? Javier’s. The Filete Cantinflas with the cheese in the center is my favorite. I can’t resist the chips and butter either.
What is something about yourself that people would be surprised by? I’m kind of a homebody and seem to turn into a pumpkin around 10 p.m. Well, maybe that might not surprise so many people.
Long gone are the early days of pop-up shops that only appear for a limited time to promote sales during the holiday season. Pop-ups have evolved into a valuable business development and marketing tool, and brands like Lululemon, Bonobos, Kit and Ace, BaubleBar and Warby Parker are using them to get in front of consumers, create buzz, enhance brand awareness and launch new products.
PopUp Republic, a retail marketing database tool, reports the pop-up shop industry is valued at $50 billion. In 2014 its online directory housed information on more than 7,000 pop-up shops.
Pop-ups are particularly valuable to online-only retailers as they provide a way for customers to physically interact with a product and make a connection with the brand in a unique environment. They are also a way for retailers to test the waters and gain market knowledge, which can contribute to business decisions like deciding on the best location for a flagship store in a particular market.
BaubleBar, a jewelry retailer that was strictly eCommerce at its inception, began implementing pop-up shops in its marketing strategy in 2013. The brand opened its first shop in the meatpacking district of New York City early in the year and focused on creating an interactive consumer experience to connect with loyal customers and reach new ones.
Brandchannel recalled BaubleBar’s efforts to enhance and personalize the customer experience by featuring in-store touchscreens, a bar serving Godiva cocktails, and even launching an App to help engage shoppers. Pop-up shoppers were encouraged to take photos while browsing and upload them via Olapic, a platform that places user-generated content directly on a brand’s website, which drove even more traffic to their site.
Not only was BaubleBar’s pop-up successful in expanding brand awareness, it helped the company gain valuable market knowledge and now they are planning to open their first brick and mortar location in Long Island’s Roosevelt Field Mall.
Nationally known technical performance clothing brand Kit and Ace has taken a similar approach to the use of pop-up shops, especially for market research during expansion.
Kit and Ace on Henderson Ave. in Dallas, TX
CBRE’s Scott Muller and Katie Braden represents the brand in their search for pop-up space throughout the U.S. They currently have 35 stores in the U.S.; nearly 20 of which are pop-ups. Six more stores are set to open in 2016.
Kit and Ace have used pop-ups as a way to gauge a market and gain brand recognition before deciding on the best location for a flagship store. For example, their pop-up shop in Nolita, New York became a permanent location based on its positive performance. The Dallas location on Henderson is in the midst of its pop-up lease and will determine soon if staying on Henderson is the best fit or if the store would be better off at a different location.
With leases that can last from six months to two years, a brand can experience firsthand the demographics the location attracts, area foot traffic, and sales. The ability to test a market before investing huge amounts of money is a great advantage for the future success of a company.
When it comes to finding space for a pop-up shop, one of the challenges Katie and her team work around is trying to find space in a tight market where landlords are less interested in short-term leases.
“Building long-term relationships in markets is crucial with any type of real estate deal, but it is especially valuable when trying to find space for clients such as pop-up shops due to their need for short-term leases,” said Katie. “The landlords we work with trust us when we bring them a tenant that we believe will add value to their property and have positive gain.”
Pop-up shops are a great marketing tool for startups and established brands alike. While the pop-up shop trend grows along with the retail market as a whole, it will be interesting to see how their role in business development continues to evolve.
Wednesday, Feb. 24, the CBRE team held its first awards celebration together as a united company. As a first-timer myself, I thought it was a nice environment to be able to get to know colleagues outside the office.
The event was hosted at Lakewood Country Club and included drinks and bites. The “make your own” Mac N Cheese bar was my favorite by far.
Daniel Taylor, Managing Director of Retail for the South Central United States, welcomed the group with a speech highlighting the hard work and dedication of our brokerage team and how far the company has come since the merge in January 2015.
“There is no perfect formula for bringing two groups together and creating an automatic seamless team,” said Daniel. “It takes time, and I can see the positive effects of the past year. We are getting comfortable; working more like a team and more importantly, we’re performing.”
He briefly hit on the state of the market, emphasizing the healthy economic conditions of Texas – “We’re lucky to be in the market we’re in. Dallas specifically, is the shining star as it has evolved into an HQ mecca. We have never been more positively positioned to succeed than we are right now.”
For the awards presentation Daniel invited Mickey Ashmore, Chairman of Retail Services America, to assist in announcing the Rising Star and Top Producers awards. Not surprisingly, Mickey kept us laughing while he doled out wisecracks about each broker and recalling stories everyone has heard numerous times before (from what I’ve heard). He did manage to share some nice thoughts on each broker. Honestly though, Mickey’s passion for the company and the industry shone through in his remarks.
The Rising Star award was presented to Sasha Levine, recognizing her as a young professional getting her start in the industry and who has earned the respect of her peers and that of senior brokers.
“Sasha has an unmatched work ethic and dedication to the future of her career in the industry,” said Daniel. “What’s more, she shows a deep respect for our CBRE RISE values. She truly embodies the characteristics of a Rising Star, and we look forward to seeing great things from her in the future.”
Sasha thanked Mickey, Jack Gosnell and Jack Breard for being her “work fathers” and mentors, in addition to her own father who also works in the industry. She joked specifically that they ensured her boyfriend was approved to date her. What are mentors for, right?
This year’s Top Producer awards were presented in descending order, closing with the announcement of Jack Breard as 2015’s No. 1 Top Producer. Jack was unable to attend as he was out of town working with a client. Go figure. What else would the top producer be doing?
CBRE 2015 Top Producers:
- Jack Breard
- Stan Lotridge
- Scott Muller
- Jeff Kittleson
- David Shelton
- Greg Pierce
- Darrell Hernandez
- Karla Smith
- Nathan Wood
- Dan Shoevlin
It was a great evening put together by Anne Braden and Rebecca Smolik along with help from the marketing team. Congrats to all our award winners and cheers to what’s to come in 2016!
Food halls are nothing new internationally with well-known destinations such as Harrods Food Hall in London and Great Food Hall at Pacific Place in Hong Kong. However, the food hall concept has only recently begun to make a name for itself here in the United States and is certainly gaining momentum.
These gastronomical destinations can include numerous food stalls, specialty shops, restaurants, breweries, bars and more. Think of a food court, but with locally owned vendors providing fresh, specialty, gourmet foods and products along with social space people actually enjoy spending time in.
A Bite of Food Hall History
One of the first known food halls in the U.S. was Philadelphia’s Reading Terminal Market, which opened in 1892. Prior to this time, farmers and butchers set up shop in the city-owned market sheds known as shambles to sell their product to residents of the town. In 1890 the Philadelphia and Reading Railroad Company purchased the block for its new terminal. Due to the merchants’ refusal to relocate to make room for the new building, an agreement was made to build a new market beneath the train shed and tracks, thus creating the market we see today with nearly 100 vendors.
The U.S. is home to such food halls as Seattle’s Pike Place Market, Atlanta’s Krog Street Market and Anaheim, California’s Anaheim Packing House and even more are popping up across the country. In fact, currently there are more than 25 food halls under construction or in planning stages.
Why the Food Hall Boom?
Now, you may be asking yourself, “What brought on the current food hall boom?” While there are several answers to this question some big factors are the consumer shift to a healthier lifestyle focused on quality, locally grown food and the slow food movement which we described in a recent blog.
Slow food is a growing movement of restaurants, bars, markets, supermarkets and food artisans around the world, who are dedicated to providing food and drink that is sourced from good, authentic and sustainable sources: locally, regionally and internationally.
With that in mind, the food hall trend goes hand-in-hand with the slow food movement as they have similar priorities: providing fresh, sustainable and local products.
Today’s consumer, particularly influenced by millenials, wants to know where their food came from, what goes into it and how it was prepared. In the past, people looking to eat out and socialize usually chose fine dining venues, which can be pricey, and as the pace of life began to quicken, fast-casual restaurants gained popularity.
Consumer trends are steering the restaurant business back toward the traditional European marketplace where customers can pick up groceries, grab a bite to eat and socialize all in one place. Food halls are the perfect alternative with their moderate prices, quality food and social environment.
Food Halls in the Dallas Market
Here in Dallas, “The Market” at the Dallas Farmers Market opened in December 2015. It is 26,000 square feet and contains a mixture of local specialty foods, artisan food vendors, seating areas inside and out, and four anchor restaurants: Rex’s Seafood, Palmieri Café; sauce, stocks and specialty food vendor Stocks & Bondy; and Nammi Coolhaus Vietnamese tacos and ice cream.
CBRE’s Amy MacLaren, Elizabeth Herman and Jack Gosnell are leasing The Market, which is currently 100 percent occupied. It is the first food hall in Dallas followed by a 30,000-sqaure-foot hall planned for Plano’s Legacy West development, which is currently under construction.
Merchants open at The Market include Abundantly Aromatic soap shop; Betty’s Blue Ribbon Fare jams and jellys; Chelle’s Macarons; Doc Popcorn; La Popular tamale house; a small grocer, Market Provisions; Bullzerk gift shop; Cajun Tailgators; Dallas Antique store; Mudhen restaurant; Scardello cheese shop; Si Tapas; San Miguel Imports; and Taqueria La Ventana.
“Food halls are the evolution of the food court, but made more human, urban and accessible,” said Gosnell. “With a variety of food choices available, it’s not only a great way to make everyone in a group happy, but it provides a unique experience for any meal.”
“Food halls like The Market offer businesses such as food trucks or retail kiosks an easy transition to a bricks and mortar space with less overhead and lower rental rates. It’s a great way to test the waters in a bigger space before expanding a business,” continued Gosnell.
Millennials also put a strong emphasis on preserving the history and urban fabric of neighborhoods. With respect to that, developers of food halls typically look for established or historical buildings within a community and preserve the exterior or skeleton of the building while updating the interior to reflect the wants and needs of today’s consumer.
For example, the Ferry Building Marketplace in San Francisco was originally a ferry station for commuters arriving by ferry in the 1800s. Pine Street Market in Portland, Oregon recently opened in the historic 1886 Baggage and Carriage building which was used to store horse-drawn carriages until the early 1900s. Similarly, The Market at the Dallas Farmers Market, although quite a bit newer than The Ferry Building and 1886 Baggage and Carriage, preserved the original structure of Shed 2 and did a full renovation/rebuild on the interior.
“Adaptive reuse is a holistic approach to creating a ‘new’ space while preserving the old,” said Gosnell. “The opportunity to restore and reuse buildings pays tribute to the history of a neighborhood and fosters a sense of pride and tradition for a community. The Market and The Shed are providing a great service to the Downtown Dallas community and we hope to see more projects like this in other neighborhoods in DFW,” said Gosnell.
As we enter our holiday season and social zenith of the year, we thought it might novel to see just how much would it cost to buy everything on the 12 Days of Christmas shopping list circa 2015.
According to the PNC Financial Services Group, it would cost $34,131, only increasing 0.6% since last year. But really, what are you going to do with six geese, nine ladies and eight maids in February? We had CBRE Research take a look at what you could buy this season and the impact of inflation across the region.
Tagged: 12 Days of Christmas
Slow food – noun
1.food that has been prepared with care, using high-quality local and seasonal ingredients
One of my favorite weekend past times is my Saturday morning visit to the local farmer’s market. The allure of fresh goods and produce, the easy interactions with vendors and feeling a part of my community has become an anticipated weekly ritual. I love playing a small part in supporting local businesses and helping them thrive in my hometown.
Numerous surveys and article research show that healthy lifestyles represent a huge consumer trend impacting retail and restaurants. Local sourcing of restaurant foods and beverages is one of THE hottest trends in foodservice and listed as one of Technomic’s 10 top trends for 2015. According to the National Restaurant Association’s (NRA) What’s Hot in 2016 Culinary Forecast which surveys U.S. chefs; locally grown meats and seafood and locally grown produce were the No. 1 and No. 3 trend predictions for the coming year. Consumers are keen on locally grown goodness.
The Slow Food Revolution doesn’t sound so revolutionary. It sounds like common sense. It celebrates a commitment to communities on a local and regional level. Food production is considered “local” if it falls anywhere within 25 miles to 200 miles from the retail or restaurant point of sale. In this ever-expanding global economy the small shop often gets left behind, as do essential nutrients when it comes to the methods of growing food. The slow food concept uses readily available resources close to home and the point of business, as well as supports small businesses, boosts local economies, and embraces healthier, small-batch, growing practices.
Slow Food Nation
Across the United States there has been a notable shift towards farm to table concepts in the restaurant industry. Slow food is a growing movement of restaurants, bars, markets, supermarkets and food artisans around the world, who are dedicated to providing food and drink that is sourced from good, authentic and sustainable sources: locally, regionally and internationally. With the health of our planet continually in the media spotlight, getting back to the most basic building blocks, those being what we consume and how we grow our food is a thriving topic of discussion. Genetically-modified, nutrient-deficient produce is unacceptable for many consumers. I know I don’t want to serve them at home or eat them at a restaurant.
What else drives the slow food movement? Protecting the heritage of traditional food sources, a sense of solidarity with the community, and the clincher for so many; cost. Slow food can be quite cost effective for the restaurateur. There are shorter supply chains, suppliers are locally based and offer a more predictable delivery schedule. Local proximity also drives down delivery costs and creates a more reactive supplier chain, which then leads to an increased speed to market of the goods and produce. Win win.
Slow Food in the City
The cutting-edge Dallas food scene is home to many locally sourced concepts. Dallas is also home to a chapter of Slow Food USA which “supports activities and education to preserve biodiversity in the food supply, spread the education of taste and connect producers of excellent foods with the co-producers (consumers) through events and initiatives.”
If slow food with a fast-food feel is what you crave, give Start a try. Start is a Dallas twist on the fast-food concept where they use fresh ingredients to create from-scratch menu options and go a step further with environmentally-friendly packaging.
Something sweet on your mind? Steel City Pops, with locations across Texas, is another restaurant enterprise that chooses to use local, organic ingredients. The eatery offers tasty popsicle treats and embraces the small batch process to create these cool fruity pops.
CBRE represents several restaurant concepts that embrace slow food/local sourcing philosophies. CBRE’s own W. Thurston Witt, Jr. represents the restaurant group 33 Restaurant Group, owners of Plano and McKinney neighborhood favorites Taverna Rossa and Cadillac Pizza Pub. D Magazine recognized, Taverna Rossa showcases a menu that strongly emphasizes the use of as many locally sourced ingredients as possible for their craft pizzas and fresh salads. Cadillac Pizza Pub touts its signature dough and sauce made in-house complimented by local herbs and spices as well as other ingredients.
The Dallas Farmers Market in downtown Dallas is an area icon. Through the real estate services CBRE offers, we have had a strong influence on the diverse mix of quality tenants that make this place an urban food destination. Currently in the revitalization process, The Shed, scheduled to open December 11th, will more permanently house many vendors and restaurants that adhere to the practice of using locally sourced produce whenever possible. Many of these tenants collaborate and cultivate business relationships with one another. It brings a new meaning to “fresh from the market”. These types of collaborations encourage community, shared success, and embrace the principles of slow food and local sourcing.
Foodies will find a plethora of restaurant and farmers market options in the Dallas area if they are feeling inspired to go the slow food route.
Another branch of the slow food movement is hyper-local sourcing; the act of bringing food production in-house. Think uber-fresh. Sugarsnap in Burlington, VT found that investing in it’s own 3 acre farm to support it’s catering business and kitchen was their best course of action. B.good, a restaurant chain of northeastern notoriety, utilized the limited space afforded to its layout and chose to grow their produce on the roofs of their locations after an accidental experiment of growing tomatoes on the roof went right.
Slow food is a global movement. In the United Kingdom, venues like Rosewood London’s Slow Food and Living Market are destination markets catering to the consumers interested in the origins of their food. Markets such as these claim “good, clean and fair produce from local growers and artisans.” And they are wildly successful and popular.
Slow Food Meets Technology
While slow food has its roots grounded in more traditional food growing methods of clean and simple the concept is far from old school when it comes to technology. One of the many offshoots of the slow food movement, apps, like Greenease offer tech-savvy consumers the means to network from their smartphones and tablets and quickly identify who offers slow food options and where they are located. These innovations aren’t lost on landlords or restaurant marketers. These types of businesses are a growing demand in many prime real estate markets.
So slow down and savor the freshness!
Those who know Jack Gosnell and his passion to revitalize downtown Dallas will not be surprised to learn that he has been named a finalist for the Stemmons Service Award. Considered one of the highest honors in commercial real estate in DFW, the Stemmons Award is given by NTCAR (North Texas Commercial Association of Realtors and Real Estate Professionals).
Jack, a senior vice president with CBRE, has spent the last 40+ years negotiating some of the biggest commercial real estate deals in Dallas. It seems only fitting that he would be considered for this prestigious award, which is given to the professional who has earned the respect of his or her peers, and is an active and productive broker who successfully resolves the intricacies of bringing two parties together in a real estate transaction. Jack does all of these things and more for the real estate market in Dallas.
Jack has been nominated for this award because of his tireless dedication to his clients, his colleagues and the city of Dallas. With a genuine passion for his work and a drive to redevelop downtown and revitalize the retail scene there, Jack embodies the ideals of the award. After being named D CEO’s 2014 Commercial Real Estate Retail Broker of the Year, winning the Stemmons Award would be another well-deserved milestone in Jack’s successful career.
We heard from a number of industry professionals who agree that Jack is an ideal candidate for this special honor:
I first met Jack Gosnell when he was my father’s right-hand man some 40 years ago. Jack knows the real estate business as well as anyone in the business, and he continues to conduct himself with the integrity and expertise that he learned from my father. Jack also has the same wry sense of humor that my father had. Anyone who has worked with Jack knows what a pleasure and just plain fun it is to be associated with him. I am proud to be able to call Jack Gosnell my friend.— Jackie Stewart, President, Henry S. Miller Interests, Inc.
Jack is an expert in his craft. He speaks from the heart and his absolute passion for what he does is infectious. Jack’s approach to the urban core is beyond business—it’s a science. He has taught me not just how to be a better broker, but how to be a better thinker. It has been a great honor to work with Jack. I am tremendously lucky to have had the opportunity to work on his team and have him as my mentor. His kindness, sincerity, and creativity are unparalleled.— Sasha Levine, Sales Assistant, CBRE
I have known Jack Gosnell since I was a lowly college intern in 1976, and Jack took an interest in me and helped me begin my real estate career. And for the last 40 years, Jack has become a mentor, a colleague and a friend. Jack is one of those real estate professionals who has the ability to bring interesting and passionate people together in complex real estate transactions. Jack also has the intuitive sense of what makes a great retail project, and in turn, why we need great retail projects to become the fabric of a great city. Throughout his career, Jack has demonstrated the highest standards of the real estate profession, and as the consummate professional with his artistic sense, he has helped create some of the most unique and important real estate developments in our city.— Philip Wise, Founding Partner, Cienda Partners
I know or have known most of the past Stemmons Award winners and I truly believe Jack Gosnell’s rare soul and sophistication actually improve this noteworthy band of brokers who have won the award. His ability to communicate is distinctive and refreshingly authentic and his results as strategic producer prove it. He is a gracious giver of time and is a truly great spokesman for the UCR brand, now proudly CBRE.”— Mickey Ashmore, Vice Chairman, CBRE
Jack is one of those guys who is truly passionate about their business. His involvement in Oak Lawn, Uptown and Downtown retail has really shaped the retail landscape of these submarkets.— Brian Murphy, Managing Principal, EDGE Realty Partners
Every day is a new adventure working with Jack Gosnell. From hearing reports of him being seen driving down McKinney Avenue with his briefcase on top of his car, getting stuck on a rooftop with a prospective tenant, or sitting in the basement of a vacant building late at night while Gary Busey played his guitar to test out the acoustics, the days are never dull. Jack is a very caring, patient, gracious, generous, entertaining guy who has made the last 33 years fly by. I think we have all worked with or have known people in our careers about whom we have said, ‘not in a million years would I work for him.’ I can’t imagine showing up to work without him.— Valerie Staton, Client Services Coordinator, CBRE
Off price retailers have been capturing a lot of market share since the recession. Macy’s, Kohl’s and Lord & Taylor are all testing new off-price concepts, bringing even more weight to the idea that this class of retailer is only going to continue to grow. Historically discount/off price has always been a draw, even when the economy is not in a recession. The US has seen a 735% increase in the number of outlet shopping centers since 1975.
Fortune notes, “In a sign of how lucrative such stores can be is this nugget: Nordstrom’s Rack stores generate more sales per square foot than its full service department stores.”
Department stores have indeed been putting their money where the market is: in only six years, Nordstrom added 109 Nordstrom Rack locations, while only bringing on 3 additional Nordstrom department store locations. During the same period, Saks brought 28 OFF 5th stores to market while decreasing their count of Saks Fifth Avenue locations by 14.
Let’s take a look at some of the newer entrants to this sector and what the growth of this area means for the Commercial Real Estate market.
Hudson’s Bay Company, who have had much success with Saks OFF 5th, recently announced the launch of a new off price concept called Find @ Lord & Taylor, the first of which will open just in time for Thanksgiving. The 35,000 square foot store will be located in Paramus, NJ and plans to target younger shoppers with prices slightly lower than OFF 5th stores.
Macy’s has opened five new Macy’s Backstage stores this fall and will open their sixth location before the end of the year. Their inventory includes clearance items from Macy’s stores as well as specially purchased goods from well-known brands priced at 20-80% off regular price. The stores average around 30,000 square feet and are located throughout the NYC metro area. Macy’s Backstage will be entering Texas next and has selected CBRE as their real estate partner, with Karla Smith acting as the master broker of the Texas team.
Kohl’s opened a pilot Off Aisle by Kohl’s store in June that features items returned from Kohl’s stores and website offered at a 70-90% discount. The 30,000 sf store is located in Cherry Hill, NJ.
Forever 21 has opened five F21 RED stores and plans to open another 37 locations by the end of 2015. The stores sell fashion basics at an even deeper discount than Forever 21 stores. The first F21 RED store in North Texas just opened at the Shops at Park Lane in Dallas.
While J.Crew is not exactly a newcomer to the off price game (they currently operate 139 J.Crew Factory Stores), they seem to be trying something a little different with the new J.Crew Mercantile. The concept, pricing and merchandise are similar to the company’s existing Factory stores, but instead of targeting outlet centers they have chosen to locate in more easily accessible areas like the first location which opened this summer at the Shops at Park Lane.
These stores tend to draw a different demographic than their older siblings by catering to Millennials. Macy’s Backstage will have cell phone charging stations in dressing rooms and will offer free Wi-Fi throughout the store. The Brooklyn location will test out a café concept called Macy’s Taste Bar Café.
Another trait these new store models have in common is a smaller, more flexible footprint. Macy’s Backstage is 30,000 sf, about one-fifth of the size of a Macy’s store. F21 RED is about 17,000 sf, whereas Forever 21 stores usually average around 38,000 sf. These stores are small enough to fit into more modern shopping centers, yet still remain an attractive option for filling vacated mall locations.
With a long history of success, the ability to capture the attention of the fastest growing group of consumers and the ability to shape shift to fit into available retail stock, the current class of off price retailers is going to continue to meet the growing demand of consumers that are shopping for savings.Images courtesy of the Shops at Park Lane and Macy’s