TUSTIN, CA-The “smaller is better” real estate trend doesn't just apply to apartment units. Now, small retailers are getting an opportunity to be a part of a larger mall without the usual overhead expenses that come with it.
As GlobeSt.com reported earlier today, Vestar, owner and developer of lifestyle center the District at Tustin Legacy here, has signed a lease with Union Market Tustin to develop a 22,000-square-foot artisanal marketplace containing independent gourmet food, fashion and lifestyle businesses within the 1-million-square-foot retail center. The new marketplace, set to open in 2014, will fill the space vacated by Borders Books & Music in the District Promenade area of the center.
Interestingly enough, bustling malls are where it's at for the boutique market. Andrea Young, owner—along with her husband, Russell—of Union Market Tustin and creator of similar concepts OC Mart on in Costa Mesa and Market LV in Las Vegas, tells GlobeSt.com, “We've always wanted to be in this marketplace because it's so busy.” She says that even though OC Mart is nearby, “we wanted to attract different people than OC Mart.”
Vestar understood the Youngs' concept and shared their vision completely, she adds. “We get asked daily by different developers to look at their projects. This was the perfect fit. The location of the former Borders is exactly the size we need. Plus, the people [at the District] are wonderful. They're very down to earth, not corporate.”
The mix of retailers the Youngs are seeking for Union Market Tustin will be 50% food items from large restaurants and specialty gourmet food retailers, with the remaining mix including fashion, jewelry, home goods, stationery and other items. “They're all small operators,” says Young. “Some of them have locations, and others don't. It's a great opportunity to support local people.”
Young says the team qualifies all of its boutique vendors to make sure they will fit into the mix. “We give them the opportunity to be in a large mall. We offer small square footage and build out the plate for them. There's constant traffic—20 to 30 stores in one group—and everyone's Facebooking, tweeting and marketing.”
Since food items are so popular with consumers, the Youngs design their concept so that food vendors are spread throughout the marketplace. “You could have an oyster bar close to a home-goods store. We also have a center wine bar in every one of our projects that's centrally located so that almost every store can see it. Sometimes the men are at the wine bar while the women are shopping.”
Unlike booths at a trade show, the individual shops are fully built out stores with their own front doors that they lock up themselves and full-blown indoor and outdoor seating. “Some have glass kitchens where you can watch them cook,” says Young. “It's kind of a hangout, an experience.”
Tenants can take space as small as 200 square feet, which is affordable for most vendors. “They're not spending all the money they make on rent, which makes tenants happy. It's also very community driven—people like to shop local and shop small and support these businesses. My husband and I call it the new retail revolution.”
Mall owners like the concept because it brings the community in and keeps them there, she adds. “The malls love it.”
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