At least one local broker thinks Simon's plans to expand the Fashion Mall are a competitive jab at Premier Properties,
which is planning a mixed-use development called Venu southwest of the intersection of 86th Street and Keystone Avenue. Sam
Smith, CEO of Resource Commercial, said he isn't sure Simon's expansion is a "brilliant" move since second-floor retail doesn't
do as well as first-floor shops. Simon plans to begin construction next year on a 150,000-square-foot addition to the Fashion
Mall. The long-rumored addition of a second level on the west side of the property will add about 20 new shops.
PLUS: Simon announces new Greenwood tenants
Greenwood Park Mall is slated to get Ann Taylor Loft, Chico's, Coldwater Creek, Jos. A. Bank, White House Black Market, Dr. Tavel, Portrait Innovations and Whitehall Jewelers in addition to Barnes & Noble. Simon also officially announced new restaurants earlier reported in Property Lines: The Cheesecake Factory, Stir Crazy, BJ's Restaurant & Brewhouse, Paradise Bakery and Johnny Rockets.
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The two developments won't necessarily harm each other, however. Rather, they will only continue to make the Keystone/86th area more attractive as a retail destination.
Simon has traditionally been a Castleton Square type mall operator. I believe most of the higher end malls they've taken on have been as a result of acquisitions. So I wouldn't bank on Simon having too much clout with high end retailers looking at Indy.
I think it will be good to have competition for Simon. For example, I've long argued that the fact that Simon owns or runs every mall in town is one reason that Circle Centre never reached its potential. There is a clear conflict of interest between Simon's shareholder duty to maximize profit on the one hand and the city's interest in maximizing downtown retail on the other. Consider: how motivated was Simon to really try to get Saks downtown when they owned the Fashion Mall? If it were back to Simon only running Circle Centre, they'd be solely motivated by that property instead of looking at maximizing value across the portfolio. I don't think Simon has done anything malicious, but clearly there is an agent-principal conflict here. The situation has a structural conflict.
This is somewhat off subject, but where is the demand for a large office tower in that area (venu)? the only office market making strong gains in Indianapolis is in Carmel, with rehabbing going on dt. I'd also rather have some sort of office development concentrated downtown. Indy has done a great job downtown, but they need to maybe make a more concerted effort at retaining more of the office expansion downtown.
Simon has several malls with fashion boutiques that are generally found as stand alone stores in cities like New York, San Francisco, LA, etc.
Take for example, the Houston Galleria, a Simon property.
Here's a directory of the mall's tenants:
http://www.simon.com/mall/directory.aspx?ID=805
It includes stores such as Louis Vuitton, Christian Dior, etc. So I'm sure Simon could lure those types of boutiques to the Fashion Mall. The question is simply is there a market for them?
Regarding expansion downtown for business, I think we need to focus on leasing the existing space that is quite vast, before we worry about developing more.
Simon might have some clout, but I think it is over rated. For example, everyone talked about Simon's clout when Circle Centre opened, but that never translated into a premium tenant mix. Why was Simon never able to bring Saks downtown, for example? Either they a) didn't want to or b) couldn't. Either way, it isn't a good sign for their ability to make things happen for Indy.
Keep in mind again, that the parent company of Bloomingdales is actually based in Cincinnati, but you may notice the lack of Bloomies in Cincy.
I wouldn't be banking on any clout from Simon to bring in unique stores.
Keeping Keystone Xing in mind why not a Neiman Marcus?!?!?
When stores like Louis Vuitton, Dolce & Gabana, Hermes, Chanel, Gucci, etc. open in Indy and then don't open in all those other places, I'll believe Indy has got some clout thanks to Simon.
The Fashion Mall is hardly the unique shopping mecca. Consider Columbus. Easton Towne Place in Columbus has an Apple Store, Anthropologie, Bang and Olufsen, bebe, Crate and Barrel, Swarovski, and Nordstrom among other stores. Saks, Sephora, and others are at Polaris Fashion Place. Arguably major chain retail in Columbus is better. It's suburban malls are certainly newer and and in better condition.
And why, with all this clout, is Indy getting Nordstrom #2 instead of a new upscale anchor. Maybe Indy isn't on Neiman's list, for example, but if there were really all this clout, maybe they could be.
As for Circle Centre, it has certainly been a survivor among failures in the region (City Center is toast, Carew Tower mall in Cincy is dying). But it is hardly the original vision that was touted. As for the split between out of towners and locals, that is evidence that all is not perfect even for Circle Centre and I've predicted it will face its own struggles in the future. Part of that split is due to the lack of unique retail. Who would come to shop at Circle Centre when the exact same stores are near your house? Nobody, that's who. Of course, downtown shopping, even in the likes of New York or Chicago, is heavily driven by visitors anyway. So it isn't necessarily all bad. But unlike 5th Av. or Michigan Ave., major retailers don't feel the need to plant their flag in downtown Indy even at the price of losing money.
I'm not down on Simon here. I think they've been a company that has done very well by their shareholders. But their supposedly clout as not, at least not in any tangible way I've seen, paid off for Indianapolis.
Maybe IKEA prefers a market size of at least 3 million, but that's not a hard and fast rule. I was in Portland 2 weeks ago and saw a new IKEA store opening there while I was in town. Portland is nowhere near 3 million even if you include the Beaverton and Vancouver areas.
no offense but why are you heralding the opening of a second Cheescake Factory in Indy? That only solidifies our reputation as chain restaurant capital of America.
Elephant Bar and restaurant no longer list Indy as a Coming Soon location.
Have you lived anywhere else besides Indianapolis? Do you realize what a small city this is? I think we should thank Simon for having the tenants we have. If it werent for the leveraging power of Simon we wouldnt have the likes of Saks, Tiffany, BCBG, William Sonoma Home (there are only 8 of these in the US), etc. Are these the cream of the crop? Hardly. But Indianapolis is a small city. No matter how much leveraging power or clout Simon has, a tenant is not going to put their business in Indianapolis if it's not a good business decision. I'm from the east coast and lived in Long Island for many years. Roosevelt Field is one of the nations largest and most successful malls. There are over one million people in a 10 mile radius. The mall is 2.5 million square feet. You will not find Gucci, Hermes, etc. there. You have to go into the city. Not having those tenants has nothing do with Simon, but everything to do with demographics. Coming from the east coast I am so thankful for Simon and the shopping and restaurants we have with such easy access.
I have to agree with you. I moved away from Indy in 1991 when the only top nothch store available was Jacobsons. After moving back only a few years ago; I too am thankful for Simon brnging the stores they have and what they have done for Indianapolis!