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.