The experience is vast, the expertise, unique. Although known as shopping center specialists, Urban is capable of virtually any type of property management challenge, obtaining impressive results.
Urban is uniquely qualified to manage and provide oversight for every phase of a vendor concession program. Our successful city and federal real estate management partnerships began in the mid 1990’s at both the city and federal level and are the result of applying our best practices from actual experience. Urban has the expertise and resources necessary to implement proactive management, leasing, development, and marketing strategies to achieve maximum revenue potential and other benefits for a concession program.
While the scope of services required by a client may vary, Urban has the flexibility to modify or expand on services offered, based on a client’s specific needs.
A professionally organized and managed concession program can lead to significant results; both tangible and intangible. Based on our experience, a program such as this can provide multiple areas of impact:
Maximize revenue potential
Increase vendor sales
Elevate operating standards
Foster ethical business practices
Reduce rental payment delinquencies
Increase pedestrian traffic flow
Provide sponsorship and advertising opportunities
Provide redevelopment possibilities
Increase surrounding property values
Urban has a proven track record of executing concession programs that not only produce a consistent revenue stream, but enhances the activation of public space as well. This dual effect creates a marketplace environment that is more lively, inviting, and convenient for the ultimate users: residents, workers, and visitors. In short, a place that becomes a welcome destination.
Major retail development projects (new construction and expansions) can have a significant positive fiscal impact on local government, primarily through the generation of sales and property tax revenues. However, these projects frequently require significant capital and do not generate an adequate return on investment to Ownership. Urban Retail has successfully negotiated a number of public subsidy agreements with local government that made possible the implementation of major retail projects. Two case studies are summarized below:
Old Orchard Mall (Skokie, IL)
Old Orchard, which was developed in 1958 as an open mall, was traditionally the dominant mall serving Chicago's North Shore market. Over the years, sales flattened out as the trade area moved north and competing centers, including the redevelopment of existing suburban downtowns, continued to steal sales.
Old Orchard could only be saved by a significant upgrade. The expansion plan included the first Nordstrom in the Chicago area, the first suburban Bloomingdales store, significant additional GLA including a food court, theaters, and the construction of two major parking decks.
The $150,000,000 project could not stand on its own financially, primarily due to the department store subsidies and the parking decks. Urban Retail, on behalf of ownership, negotiated a subsidy agreement with the City of Skokie that is summarized below:
The issuance of tax-exempt bonds to finance a parking deck.
A share of the sales tax revenue to the developer based on sales productivity.
The expansion project resulted in increased mall sales of 45% per sq. ft., and with the addition of Nordstrom and Bloomingdales, Old Orchard returned to its historic position of the dominant mall in the North Shore.
Galleria at Roseville (Roseville, CA)
The site for this Regional Mall was strategically located in the heart of a major growth corridor of suburban Sacramento. The site was encumbered by a major special assessment and development impact fees totaling approximately $25,000,000, thus making the project financially unfeasible. Urban Retail negotiated a subsidy with the City based on a sale-leaseback of public improvements and a rental stream based on the sales tax generated by the mall. This subsidy increased the return on investment by 400 basis points, thus making the project feasible. The Galleria at Roseville opened in August 2000, and currently generates sales that exceed industry norms.