A stunning new $250 million Galleria VI wing recently debuted to rave reviews.While some malls struggle to adapt to the changing retail environment, others continue to thrive in spite of any challenges thrown their way. Of course, an excellent location gives some landlords a leg up on the competition, but there’s also a lot to be said for remaining proactive regardless of circumstances. Industry giant Simon Property Group continues to successfully demonstrate that concept, as the company is in the midst of a broad investment strategy to galvanize its portfolio.
As the Houston Chronicle shares, part of that investment has taken place at the Houston Galleria. A stunning new $250 million Galleria VI wing recently debuted to rave reviews. The luxury wing of the popular mall, which includes 35 new shops and several restaurants, is anchored by Saks. Floris van Dijkum, a senior analyst with investment firm Boenning & Scattergood, explains that the Galleria remains a shining example of the possibilities that remain in the shopping mall industry.
"There's this whole theory that the mall is going dead, but if you walk the Galleria, you know that's not the case," he said, adding that "We think this is one of the best uses of capital a real estate company can have."
Simon Malls president John Rulli explains that the new luxury wing was in response to the demand from shoppers in the area, and signs point to it being a big hit.
"Challenges in the retail industry have not caused us to change our approach as it has for many others in the industry. We are constantly curating our mix," he said. "As home to one of the top-performing Saks Fifth Avenue stores in the country, it became clear that there was demand for a deeper mix of luxury brands."
Christopher Lane, the Galleria's director of marketing and business development, notes that retailers continue to flock to this thriving retail mecca in the Houston area. The new wing should attract even more interest, as it helps to confirm that shoppers are more than willing to spend in brick-and-mortar establishments when the right retail mix of is offered up to them.
"Retailers want to be here," he said. "It has sort of a halo effect."
While the Galleria certainly benefits from being smack dab in the middle of one of the largest metro areas in the United States, landlords and property developers in every market can use the success of the property as a template. If you successfully curate a mix of stores and restaurants that consumers in your area crave, there’s a solid chance that they’ll come out in droves.