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San Francisco treat

Westfield San Francisco Centre, one of the largest urban retail centers in the U.S., celebrated its grand opening last month. Among the event’s features was an aerialist from acrobatic choreography troupe Project Bandaloop, who descended from the center’s historic dome on a red ribbon. The celebrants included (from left) Westfield Group CEO Peter Lowy, California first lady Maria Shriver, San Francisco Mayor Gavin Newsom and Forest City Commercial Group CEO James Ratner. The developers say they expect the $460 million redevelopment to draw some 25 million visitors per year and ring up about $600 million in annual sales.

Bottom dollars

Today’s economy is tough on low-income shoppers, but it is also getting tough on some of the chains that serve them, observers say. Small-box discount chains such as Big Lots, Dollar General and Family Dollar could get priced out of open-air centers soon. This is because these chains traditionally pay lower rent per square foot, and many landlords are going to be unwilling to renew leases at $5 per square foot, or, in some cases, even less, says Lenore Reynolds, vice president of leasing at Bruce Strumpf, a Clearwater, Fla.ébased shopping center management firm. Reynolds says Dollar Tree, rent-to-own stores and cash-advance businesses are all paying rent more in line with market value and will be the ones left standing when leases start coming up for renewal. “Where are they going to find their $5 rent? That is all they have been paying in the past,” Reynolds said. “And now the rents for anchor spaces are double digits at this point.”

Sher shares some advice

Merritt Sher, founder of the Terranomics Corp. development firm, a principal of Oakland, Calif.ébased Metrovation Capital and an expert on urban planning whom many consider to be the father of the power center, is now an author, too. Sher has come out with a short book containing 52 “musings” on various aspects of entrepreneurship — one for each week of the year. The book, titled 10 Birds with 1 Stone, offers a wide range of advice. Under a section titled “Benign Neglect,” Sher writes that problems cannot be dealt with immediately are best left alone until they can be solved or cease to constitute a problem at all. These are not to be confused, however, with the problems he identifies as “sleeping dogs,” which ultimately awake and, if not dealt with, may bite.

Window treatments

Windows are a point of contention in many publicly funded mixed-use properties, executives said at ICSC’s Western Division Conference, in Palm Springs, Calif., last month. “Retailers hate windows, but cities love windows,” said Marianne Lowenthal, executive vice president of Combined Properties, which developed the Sunset & Vine mixed-use center, in Los Angeles. “Cities want mannequin displays in the windows like old-time department stores, but retailers can’t afford [to waste the space],” said Howard Samuels, president and CEO of Samuels and Co. “We like windows,” said Pamela Lent, real estate director for the Western region at book retailer Borders Group, “but we want to put our bookshelves in front of them.”

Vote of confidence

November’s elections could be a watershed event for U.S. landlords and retailers, with the entire House of Representatives and one-third of the Senate up for re-election. Numerous state-level races are taking place too, including 36 gubernatorial spots. To help members stay on top of the shopping center industry-specific issues and the candidates, ICSC has teamed up with the U.S. Chamber of Commerce to set up a bipartisan Web site at www.icscvotes.com. This site, launched in 2004, allows users to register to vote, research Congressional votes and bill sponsors, learn about the candidates and obtain absentee ballot requests.

“This midterm election is pivotal to the shopping center industry,” said Betsy Laird, ICSC’s staff vice president for federal government relations. “If you’re in business, you’re in politics. Many decisions made in Washington, D.C., and state capitals throughout the country will directly impact businesses on a day-to-day basis. The results of this upcoming election potentially can have a greater impact on the future of our industry than many actions taken in the company boardroom.”

Cellular sell

After a successful test run, mall owners General Growth Properties and Westfield Group are rolling out a new technology at some of their properties that allows shoppers to search products, brands and sale merchandise at a particular shopping center over the Internet or by mobile phone. The technology, called NearbyNow, catalogs everything at a particular center, from the movie times to the food court menus, and creates a Web-based search engine shoppers can access before, after and during their shopping trips. Shoppers can reserve products through the system, allowing them to make sure a particular size or color is waiting for them before they even leave home. The service can also be used to launch highly targeted advertising as well. “We launched the service at Eastridge mall [San Jose, Calif.] in September, and by Oct. 10 the center’s Web site traffic more than tripled,” said NearbyNow CEO Scott Dunlap. “Ninety three percent of searchers found what they were looking for, and more than 50 products were reserved in one month.” The service will roll out to 20 U.S. markets including Atlanta, Tucson, Ariz., and Omaha, Neb., over the next nine months.

Automotive anchor

General Growth Properties found an innovative temporary tenant for the vacant former Robinsons-May store at its 1.1 million-square-foot Valley Plaza Mall, in Bakersfield, Calif.: an automotive showroom. From Oct. 2 through Dec. 31, local dealer Barber Honda will occupy the store’s ground level, with a display of some 50 Honda vehicles that shoppers can test drive. The showroom will have the capability to accept trade-ins and finalize deals so mall visitors can literally drive away in new cars. The deal takes some heat off General Growth as it continues the search for a permanent replacement for the store, which shut down this year.