COVER STORY, SEPTEMBER 2006

RETAIL RISING
Large-scale retail centers flourish in Texas due to the need for quick, convenient shopping destinations.
Stephen O’Kane

Throughout Texas, consumers, developers and retailers alike are finding that convenience draws crowds. With a number of lifestyle, mixed-use and traditional retail centers popping up all over the state, Texas has shown that a strong job market and relatively cheap land are prime reasons for developers and retailers to come to the Lone Star State.

The Promenade Shops at the Spectrum

The Promenade Shops at The Spectrum in Pearland, Texas, will be an 800,000-square-foot lifestyle center anchored by a 136,000-square-foot Bass Pro Shops.

The Promenade Shops at The Spectrum, which is strategically placed just minutes from downtown Houston and Texas Medical Center, is already drawing attention since it broke ground in June. The planned 800,000-square-foot lifestyle center will sit within The Spectrum at Clear Creek, a planned 1,030-acre business and technology park, and adjacent to Shadow Creek Ranch, a 3,500-acre master-planned community with 11,500 residences, 4 million square feet of office space and seven schools.

The Promenade Shops at The Spectrum also will offer unique amenities that will make the center attractive visually in addition to its convenient location. “The uniqueness of this project includes the various lakes and bridges, the amphitheatre and fountains, the entertainment and dining aspects, and the large regional draw that Bass Pro Shops will bring to the center,” says Terry McEwen, president of Poag & McEwen Lifestyle Centers, the company responsible for the development of The Promenade Shops at The Spectrum.

Anchoring the lifestyle center will be a 136,000-square-foot Bass Pro Shops store, which is being designed specifically for this project. “Bass Pro Shops is expected to draw 3 million customers per year and historically half of their customers come from more than 50 miles and 40 percent spend the night,” says McEwen. “We will have a hotel at the site with several more nearby.”

Phase I of the project is underway and it also will include a 90,000-square-foot cinema, a 25,000-square-foot bookstore, 50,500 square feet of restaurants, 200,000 square feet of specialty retail, a 10,000-square-foot farmers’ market and a hotel.

Alamo Ranch Marketplace

The Greater Houston area is not the only city experiencing large new retail developments. San Antonio will see the Alamo Ranch Marketplace retail center begin construction early next year.

Irving, Texas-based Archon Group recently purchased 121 acres in northwest San Antonio for the development of this project, which will be an approximately 850,000-square-foot power center featuring a combination of retailers, restaurants and other entertainment-based tenants. And as part of the Alamo Ranch/Westwinds master-planned residential community, it is bound to see a heavy flow of consumers.

“Alamo Ranch Marketplace will be successful based upon the very enthusiastic response received by a large number of these types of users and the convenience provided to so many new residents,” says Dan Watson, director of Southwest retail investments for Archon Group, a wholly owned subsidiary of Goldman Sachs. “These residents will be able to minimize their need to venture more than 3 to 5 miles from their homes, reducing congestion on the roads and unnecessary use of extra time and fuel.”

Like The Promenade Shops at The Spectrum, convenience plays a major role in the planning and developing of such a large retail center. Bordered by Loop 1604, State Highway 151 and Culebra Road, Alamo Ranch Marketplace is perfectly positioned to serve the San Antonio community. “This new development is located at the epicenter of the explosive growth in northwest San Antonio and directly accessible from 1604, Culebra Road, and Alamo Parkway,” says Watson.  

With more than 4 million square feet of projects recently developed or in the process of being developed, Archon Group is the company to rise to the challenge of creating such a large development. “Our company was the right company for the project because it is larger, requiring a company with strong financial backing and the project requires sophistication in dealing with a wide assortment of national credit retailers and the complexities associated with off-site road improvements, FEMA approvals and tree mitigation,” says Watson.

San Antonio-based MDN Architects is serving as project architect while UCR-San Antonio is the leasing representative. No major tenants have been announced for Alamo Ranch Marketplace, which is scheduled for completion in March 2008.

Shops of Southlake

As large as Alamo Ranch Marketplace and The Promenade Shops at The Spectrum are, there is still a demand for smaller and more pedestrian-friendly centers, similar to what is currently being developed in Southlake, Texas.

Shops of Southlake in Southlake, Texas, is following the trend similar to that of Alamo Ranch Marketplace. By developing a significant retail center in or near a mixed-use center or large residential area, retailers can attract a dedicated customer base.

Shops of Southlake will be located at the corner of Southlake Boulevard and South Carroll Avenue, directly across from Southlake Town Centre, a 1 million-square-foot mixed-use project that includes retail, entertainment, office and municipal spaces. “The center will benefit from the regional draw of its anchor, Central Market, and from its location directly across from Southlake Town Square, one of the most successful Main Street-style projects in the United States,” says Ian Pierce, director of communications for The Weitzman Group/Cencor Realty Services.

Cencor Realty Services is developing Shops at Southlake, which will span 230,000 square feet upon completion, which is scheduled for this fall. In addition to its Central Market anchor, which currently has only eight locations in Texas, Shops of Southlake will feature an array of local, regional and nationally known lifestyle retailers.

“Shops of Southlake will be a success due to a combination of factors,” says Herbert D. Weitzman, chairman and CEO of The Weitzman Group and Cencor Realty Services. “One is its anchor, Central Market, which guarantees strong traffic with high frequency. The second is its location, at the strongest lifestyle retail intersection in Dallas/Fort Worth. The third is its line-up of lifestyle tenants and destination restaurants. Finally, the entire project will work because of its architecture, which will combine town square elements with a park and an ornamental fountain. The result will be a lifestyle retail center with a strong sense of place that people will visit again and again.”

That is just what developers and retailers are looking for: a strong sense of place that people will want to visit again and again. Cencor Realty Services is attempting this with Shops of Southlake.

“Cencor’s track record includes development of architecturally outstanding retail centers that become landmarks in the communities they serve. Shops of Southlake is designed to be just such a center,” says David Palmer, executive vice president and head of Dallas/Forth Worth development for Cencor Realty Services.

The Shops at Highland Village

Texas is experiencing an influx of large-scale lifestyle centers due to the recent rise in population. The Shops at Highland Village will be a 375,000-square-foot center in Highland Village.

The 375,000-square-foot center, which is being developed by Regency Centers, will include tenants such as AMC Theatres, Coldwater Creek, Barnes & Noble, Limited Too, Victoria’s Secret and White House|Black Market. In addition to its long list of attractive retailers, The Shops at Highland Village will provide design features such as pedestrian plazas, alfresco dining, landscaped walking areas and a gateway entry monument, adding to the sense of community Regency Centers is attempting to create.

“The community is very excited to have The Shops at Highland Village developed,” says West Miller, senior vice president of investments for Regency Centers. “The center is very much anticipated and will only add to the community feel in the area.”

Also planned for this lifestyle center is a series of pathways that will provide jogging and walking areas around the perimeter of the development that will also connect with the city’s inland trail system master plan.

O’Brien & Assoc. is providing project architect servies and the leasing is being handled by UCR.

Uptown Village at Cedar Hill

Uptown Village at Cedar Hill in Cedar Hill is currently being developed in Texas.

“Uptown Village represents the next generation of shopping centers and an upscale retail opportunity for the rapidly growing city of Cedar Hill and the surrounding areas,” said Gar Herring, president of The MGHerring Group.

Tenants at Uptown Village at Cedar Hill will include Dillard’s, Barnes & Noble, a second department store, six restaurants and 75 other shops. The diverse mix of retailers, restaurants and entertainment destinations will cater to the large amount of growth this area of Texas is experiencing.

“The Uptown Village trade area has experienced 90 percent growth in the past 10 years and will have a sustained growth rate of 20 percent through 2010,” says Herring. “The center will meet the retail and dining demands of the increasing population of educated and affluent customers in the trade area. The City of Cedar Hill firmly believes that Uptown Village will have a positive impact on the trade area, which includes DeSoto, Duncanville and Lancaster.”

Perhaps the most unique feature of the center is its architecture. “The design will reflect the distinctive and historic architecture of Cedar Hill, capturing signature features of the Hill Country of North Texas with lush landscaping and rolling hills, adding striking views to the list of amenities Uptown Village will offer,” Herring says.

Uptown Village at Cedar Hill is a joint venture between The MGHerring Group and Prudential. Bank of America will finance the construction, and CDI Contractors will serve as general contractor. CMH Architects will design the project, while Architecture+ will provide  architecture services.

What’s happening in Texas with developments such as Uptown Village at Cedar Hill is a phenomenon that is occurring across the country. Customers, as well as developers, are beginning to find that convenient shopping is the way to go. By placing most of the consumers’ needs in one location, developers and retailers are drawing in a dedicated customer base that will come back again and again to satisfy their retail needs.

©2006 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.