In 2018, the enclosed mall is challenged. By some estimates, a quarter of enclosed malls will be closed by 2022. To stay relevant, malls all over are repositioning themselves to be more experiential, offer better food options, and to encourage patrons to stick around for longer than it takes to buy a candle or pair of jeans.
The latest mall planning to reinvent itself is the Galleria Dallas, which has hired Fort Worth-based Trademark Property Co. to manage, lease, and develop the 1982-era shopping mall. Trademark is replacing Simon Property Group.
The press release that landed in my inbox didn’t share a lot of details on the Galleria’s new strategy, but says that “planning will begin immediately with a stakeholder visioning process that will bring together experts in retail, design, real estate, placemaking, and development…”
The Galleria sits adjacent to another enclosed mall—Valley View Center—which is becoming the massive $4 billion Dallas Midtown project, which calls for office, apartments, retail, a hotel, and green space. Though the project broke ground in June 2017, it is, per Robert Wilonsky, in shambles. The office project connected to the Galleria, the three-building Galleria Towers, has scored a handful of new tenants recently (including Amazon, Ansira Partners, and AECOM) following a $16 million renovation by CBRE Global Investors, who bought the towers in 2015.
Trademark, headed by Terry Montesi, was also brought in to reposition the ailing Victory Park. Preliminary signs look promising with lots of lifestyle retail, such as a bowling alley, cinema, and restaurants.
Here’s the rest of the Galleria release.
Changes are on the horizon for one of Dallas’ best-known mixed-use properties. UBS Asset Management (“UBS AM”) has hired Fort Worth, Texas-based Trademark Property Co. to manage, lease and develop a plan to evolve the 1.4-million-square-foot Galleria Dallas.
Located at the prominent intersection of I-635 and the Dallas North Tollway, Galleria Dallas opened in 1982 as Dallas’ first major suburban mixed-use project. Today, the project sits at the gateway to the up-and-coming Midtown project, which will bring 450 acres of new office, multifamily, retail and entertainment space, as well as the city’s largest programmed park.
“Galleria Dallas is an iconic shopping center and a valuable real estate asset for UBS investors. With the evolution of the surrounding area and retail industry, we are at a unique point in its history,” said Matt Lynch, Head of Real Estate & Private Markets (REPM) U.S. at UBS AM. “Our vision for this next chapter in the Galleria Dallas story is to position it as a leader in the resurgence of the neighborhood and as a vibrant mixed-use district. We are thrilled to have found a partner in Trademark that brings nationally recognized redevelopment experience and local market knowledge, and we are excited to cultivate this vision together.”
Planning will begin immediately with a stakeholder visioning process that will bring together experts in retail, design, real estate, placemaking and development with city and community stakeholders to gather feedback and input on the future of Galleria Dallas. Using information from these sessions, Trademark and UBS will develop a strategic plan and concrete initiatives that evolves the property based on market and customer research, industry best practices, and the continued evolution of the retail industry.
“We see enormous potential in Galleria Dallas as a true destination-worthy mixed-use district and gathering place for North Texas,” said Terry Montesi, CEO, Trademark Property Co. “People expect more from mixed-use places today than ever before. We intend to consider every option as we evaluate how best to evolve Galleria Dallas – from the addition of other uses, improved service and experience, to added technology, destination-worthy common areas, and a thoughtful collection of best-in-class retail and restaurants. It’s about identifying strategies that fit the changing role of brick and mortar retail and mixed-use places in customers’ lives.”
Trademark’s portfolio of retail and mixed-used development expertise includes a number of recent notable redevelopment projects like Victory Park in Dallas, Rice Village in Houston, WestBend in Fort Worth, and Saddle Creek in Germantown, Tenn.