Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.
Issue link: https://westernrealestatebusiness.epubxp.com/i/818922
62 • May 2017 • Western Real Estate Business www.REBusinessOnline.com EVOLVING WITH THE MARKET The ever-changing nature of the retail environment means even successful shopping centers like Westfield's Valley Fair in Silicon Valley can't remain stagnant. By Nellie Day W estfield Corporation is on the move in a big way. The com- pany's proactive approach to the evolving retail times has led to some major power plays as the shop- ping center giant refocuses its efforts and redeploys its capital as it adapts to the new shopping landscape. This included a trimming down of non-core, less productive assets that has currently left Westfield with 35 shopping centers under management at a value of $31 billion. The company is also in the middle of a $9.5 billion re- tail development program that targets its flagship assets, including Westfield Valley Fair in the Silicon Valley sub- market of Santa Clara, California. The nearly 1.4-million-square-foot shopping center already achieves an- nual specialty sales of about $1,200 per square foot, which is why it might be a surprise to some that Westfield has decided to invest $1.1 billion to re- vitalize and expand this center. "Westfield has never been content with resting on past success," says William Hecht, Westfield's chief op- erating officer in the United States. "Instead, the company has a strong history of anticipating global retail trends and changes to shopping en- vironments — and proactively rede- veloping our best flagship assets in order stay ahead of those trends and changes." Valley Fair's revitalization includes a new 150,000-square-foot, three-level flagship Bloomingdale's department store, a one-of-a-kind ShowPlace ICON cinema and the refinement of its prestigious Luxury Collection, which already boasts names like Bot- tega Veneta, Saint Laurent, Tiffany & Co., Burberry, Giorgio Armani, Mont- blanc and Versace. The center will be expanded to include a total of 2.2 mil- lion square feet with more than 360 re- tail tenants. It will also feature a new dining district, the latest integrated digital technology, and new event and entertainment concepts. Fashion Meets Technology One of the trends Westfield is hop- ing to stay ahead of is the adoption of technology to both simplify and enhance the shopping experience — something that's very important to a tech-savvy crowd like Silicon Valley. "Westfield is converging our physi- cal destinations with cutting-edge digital technologies, as we believe that the future of retail is not a choice between physical and digital," Hecht says. "By seamlessly integrating the best of physical experiences with digi- tal conveniences, there is an opportu- nity to transform properties such as Westfield Valley Fair into the 'ultimate brand showroom' in which retailers and brands can create engaging expe- riences for consumers and showcase their products in new and exciting ways." Though no announcements have been made yet, Valley Fair is set to fol- low in the footsteps of some of West- field's other properties, which have partnered with powerful e-commerce leaders like Amazon, Warby Parker and Rent the Runway, along with showroom superstars like Ford and Tesla. The center already contains an Amazon pop-up shop where custom- ers can test and purchase devices like Kindle e-readers, Fire tablets, Fire TV and Echo. Westfield is also incorporating vir- tual reality technologies into its reno- vated centers. The company recently introduced Facebook Oculus pop-up shops at a number of its shopping cen- ter and airport locations. The pop-up can take customers through a series of immersive scenes. Then there's Pepper, an adorable four-foot humanoid concierge robot made by Softbank Robotics America that engages with Valley Fair custom- ers through greetings, dances and Q&A; sessions. This pilot program was rolled out in two Northern California locations this past holiday season to assist customers while giving them a glimpse into the future of technology. We Bid it to Win it! Always transparent Always on time on budget Always KZ Miller Construction 2 3 nd rd For more information please call Pat Cowan (619) 606-1474 General Contractor #1011565 www.kzmconstruction.com email: pc@kzmconstruction.com The 1.4 million-square-foot Westfield Valley Fair is getting more luxury retailers as the Silicon Valley market it serves demands more luxury goods and branded stores. Westfield Valley Fair in Santa Clara, California, is undergoing a massive $1.1 billion redevelopment, despite already achieving annual specialty sales of approximately $1,200 per square foot. It is part of Westfield's philosophy to not rely on past success for the future.