NEW YORK — Last week’s International Council of ShoppingCenters Conference and Deal Making at the Sheraton New York Hotel &Towers and the New York Hilton & Towers was a hive of activity.Attendance at the conference was the highest it’s been in five years,6,937. The low, in 2009, was 5,746. “It’s very, very busy,” said WilliamTaubman, chief operating officer of Taubman Centers Inc., which hasthree centers in the works, International Market Place in Honolulu, TheMall of San Juan in Puerto Rico and University Town Center in Sarasota,Fla. “There’s a lot of action. You can tell by the mood around thisroom. A lot more deals are happening, absolutely.”
Peter Leslie,senior executive vice president of leasing at Westfield Group, soundedpositively starry-eyed when he spoke at the Australian company’s party.“We believe we’re out of the recession and into the blue sky,” he said.“We’re making a massive reinvestment in the U.S. We’re spending $4billion in the next five years.”
That includes adding 500,000square feet to Garden State Plaza in Paramus, N.J., increasing the sizeof Valley Fair in Santa Clara, Calif., and developing and leasing theWorld Trade Center’s 365,000-square-foot retail component.
“There’sincredible progress being made downtown, most significantly atBrookfield Place, the new name for the World Financial Center,” saidStephen Stephanou, a broker at Crown Retail Services. “The push thereseems to be for well known luxury brands and young fashion brands.”
Accordingto retail sources, Brookfield has “convinced Louis Vuitton to take abig piece of space and J. Crew, two spaces. They’re talking to Hermès,Michael Kors, Ferragamo, Prada and Steven Allen.”
“Real estate inNew York City seems to be booming,” said Robert Siegel, chief executiveofficer of Metropole Realty Advisors. “Madison Avenue is back to whereit was before the crash — $1,000 per square foot.”
CrownAcquisitions has a stake in Olympic Tower on Fifth Avenue between 52ndand 53rd streets, where it plans to reposition the property and convertthird-floor office space into retail. “Fifth Avenue is a$3,000-a-square-foot market,” said Brittany Bragg, a principal at CrownAcquisitions. “Tenants keep paying because they’re successful at thoserents, with $50 million to $100 million in annual sales. Retailers tellus they used to open 100 stores a year. Now they open 25 stores” withhigher volumes.
“Now that rents have risen to a certain level,it’s making economic sense for [retail] tenants to purchase and ownspaces that are vital to their brand identity,” said Jeffrey C. Paisner,a broker at Ripco Real Estate, citing Inditex’s $324 million purchasefor Zara’s flagship at 666 Fifth Avenue. “It used to be better to paythe rent and use your capex to build other stores, but now thecomputations changed.”
Thor Equities on Wednesday said it formed ajoint venture, Thor Urbana Capital, with a Mexican developer, to invest$500 million in Mexico. Thor is focusing on Mexico, Peru, Brazil andColombia “because China is slowing down, so retailers are looking foralternative growth,” said Joseph Sitt, founder and ceo. Thor’s holdingsin Manhattan are growing. “We’re in contract to buy the entire block ofWashington Street between 13th Street and 14th Street, where Scoop has astore,” Sitt said. “Tiffany, Louis Vuitton and Giorgio Armani arelooking to build flagships in the Meatpacking District.”
“Thediverse projects in our region and other parts of the country indicatevery clearly that, ultimately, the American shopper is out buying at allprice levels,” said Lisa Rosenthal, a broker at Lansco.
On thealternative front, Pier 57, a floating mall near 15th Street, isexpected to open in April 2015. Its first tenant will be the TribecaFilm Festival. Norm Roumanous, development director, said half of the300,000 square feet of space will be used for food and the other halffor fashion, culture and entertainment. “We’re targeting $1,000 persquare foot in sales,” he said. Retail spaces range in size from 160square feet to 20,000 square feet. Pier 57 is reportedly talking to Nikeand J. Crew.
For Michael Glimcher, chairman and ceo of GlimcherRealty Trust, the experience is everything. Glimcher is raising food to20 percent of the total mix at centers, from 10 percent, adding yogastudios and bike shops, along with outdoor space. There will be morepersonal care options such as salons. “It’s not that we don’t want tosell shoes, handbags and dresses,” he said. “If all we are is adistribution channel,” consumers will lose interest. At ScottsdaleQuarter in Arizona, there’s an outdoor splash pad for kids as well asfarmers markets. Town Center Plaza in Kansas City will build a bandshell for outdoor concerts, along with a coffee bar and eatery.
“Wetry to storyboard the experience,” Glimcher said. “We have an activepipeline. We will expand Polaris Fashion Place in Columbus, Ohio, withmore retail in 2014. We have a lot going on making what we have better.”
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews