Gabberts Close-Out: 235,000-SF Sublease

Within 24 hours of word hitting the street, Vaughn Miller, president of the firm's retail division, says calls came in from several furniture retailers looking to lay claim to the 7.5-acre landmark site at 13342 Midway Rd. He tells GlobeSt.com that the Edina, MN-based Gabberts will vacate its 33-year location in 30 days.

"People in Dallas weren't really sure if Gabberts really was closing because it's such a landmark," Miller says. In recent months, the 60-year-old furniture gallery pioneer closed a Fort Worth location and is down to just Dallas and its Minneapolis homeport.

"We feel with the level of interest it should move very quickly," says Miller, who's partnering with vice presidents Henry S. Miller IV and Daniel Harris to put the sublease deal in front of national, regional and local retailers. Miller says the most likely backfill is going to be another furniture company, probably local, looking to tap an established shopping site.

Miller says the plan is to sublease the property, owned by Parker Equities of Dallas, to one tenant, but he's not closing the door on a double deal. The 105,000-sf, two-story showroom is being tagged at $10 per sf, triple net, while the 135,000-sf warehouse is up for grabs at $5 per sf, triple net. All he'll say about the master lease balance is it's at least five years.

"We think it's the perfect opportunity for a local retailer to walk in and open the doors," Miller says. "The thing about Dallas is very rarely do we keep second-generation retail space on the market. And, the absorption in that submarket is tremendous."

The Gabberts' boxes, built in 1973, are part of a furniture row that's emerged in the past two years as a second design district in the city. During its long-time run, the Gabberts location was the single highest volume furniture store in North Texas. "The industry's changed and the competition has changed," Miller explains, citing the retailer's decision to pack its bags after all this time.

Miller says the competition was stiff for the sublease assignment. But, he credits the firm's "great local expertise and national reach through TCN" with providing the leverage to score the assignment coup.