October 21-November 3, 2015 —
COLORADO REAL ESTATE JOURNAL
— Page 7AA
Retail
A
s we have all figured
out, retail is different
today than in its prere-
cession heyday. Since 2008, many
national retailers have had to
change their real estate strategies
to survive, which meant focusing
on fewer stores in major, high-
density locations. This shift has
left many older, traditional-style
malls in smaller markets in a
state of decline as retailers, led by
department stores, close under-
performing stores. But when an
oldmall dies, the challenge lies in
re-engaging the community with
a new, more sustainable concept
– when people are still expecting
that old mall.
Meet Village at the Peaks.
This new, all-outdoor develop-
ment is being built on the site
of the former Twin Peaks Mall
in Longmont, which experienced
a dramatic decline over many
years. During this long, steady
decline, other malls were built
in the vicinity, tenants vacated
the old mall and retailers altered
their real estate strategies. What
this meant for Longmont is that
national fashion retailers, which
were now located at Centerra,
Orchard Town Center, FlatIron
Crossing and Twenty Ninth
Street, were not likely candidates
to come back to Longmont.
Unlike the shopping cen-
ter before it, there would most
likely be no large, national fash-
ion retailers anchoring this new
location – and the developers,
and the community, would need
to think outside the mall-style
box. Which is exactly what’s hap-
pened. The development under
construction today includes a
mix of stores, restaurants, enter-
tainment options and services
the Longmont community has
said it wants, from a state-of-
the-art Regal Cinemas – the No.
1 most-requested element of the
new project – to a top natural
grocer, Whole Foods, plus a sales-
tax-generating giant, Sam’s Club.
Beyond these big retail guns that
will meet daily needs and deliver
sought-after entertainment, the
new mix also includes general
merchandise, soft goods, food,
fitness, health and beauty, wine
and spirits, electronics and more.
In all, 85 percent of the mer-
chants committed to the space
in the project to date are new
to Longmont. That means they
have made the difficult decision,
during a historically tough time
for retail, to move in and invest
a total of more than $100 million
(excluding inventory) in Long-
mont, and that’s in addition to
the $90 million the developers
and the city of Longmont are
investing in this project. What’s
more, retailers are enthusiastical-
ly embracing the project, which is
now almost 85 percent preleased.
But retail is only one part of the
development planning. A major
focus at Village at the Peaks is
planning the consumer experi-
ence. At the new property, retail
will surround an intimate and
engaging village that includes
$2 million of special amenities
– fountains and park space, an
amphitheater and play area, fire
pits, lighting, lush landscaping
and music, plus a full calendar of
exciting community events and
activities.
The experience and environ-
ment has to
entice
the
n e i g h b o r s
to come and
spend their
free
time
there, which
doesn’t hap-
pen
over-
night.
The
development
team has been
working hard
to build rela-
tionships with
the Longmont
commun i t y
since
long
before we ever purchased the old
Twin Peaks Mall in 2012. Hosting
successful community events,
even before the project is com-
plete, is an important part of that
strategy. Both the development
and its retailers have been work-
ing with and helping local chari-
ties and schools for years before
this point. Working with I Have
a Dream Foundation of Boulder
County connects the new village
with a nonprofit that is also com-
mitted to improving the com-
munity.
And it’s all coming together
better than we expected. The
groundbreaking event for the
new retail destination held in
August 2014 had twice the atten-
dance expected with nearly 400
people, and the recent back-to-
school block party and property
preview event held in August
brought nearly 1,500 people to
the construction site. This event
not only helped build key con-
nections with local residents, but
it also supported our nonprofit
and community partners (includ-
ing the St. Vrain Valley School
District, Boy Scouts and I Have
A Dream Foundation) and par-
ticipating Village retail partners,
which were on site, familiarizing
the community with their con-
cepts via complimentary sam-
pling, giveaways, tastings and
demonstrations. Horse-drawn
carriage rides around the prop-
erty – including free popcorn on
the way to see the under-con-
struction Regal Cinemas – helped
build excitement among the com-
munity for the retail, dining and
entertainment experiences soon
to come with the first phase of
store openings slated for late fall.
This focus on creating mean-
ingful shopper experiences and
strong community connections
to the property is more than just
a nice thing to do – it’s an impor-
tant business strategy that sup-
ports retailer success. This is one
reason our company chooses to
voluntarily fund the merchant
associations of its properties. This
helps increase tenant sales vol-
umes through the production of
events and marketing efforts that
appeal to local shoppers to gen-
erate traffic and help developers
operate a sound shopping center.
The increase in e-commerce
means that physical retail set-
tings have to deliver more to
shoppers than ever before. Today,
there must be more – more activi-
ties, more special events, more
places for people to picnic, enjoy
fire pits and water features, and
more entertainment. It’s a dif-
ferent experience, based around
providing the community with a
new place to gather.
And so who will gather? Mil-
lennials ages 18 to 34 already
are driving the retail market. The
millennial generation is larger
than the baby boom generation
and three times the size of Gen-
eration X, with 80 million in the
U.S. as of last year. Forbes report-
ed this powerful demographic
is expected to spend $200 billion
annually by 2017.
That’s why any new shopping
destinationmust not only consid-
er teens and young adults as part
of the development process, but
also shape the property around
that growing shopping popula-
tion. Experiences drive decision-
making for this population. They
expect fast, up-to-the-minute
technology and ways to connect
to each other.
To attract teens and 20-some-
things, as well as families, Vil-
lage at the Peaks is designing
a positive, safe and attractive
experience. Adirondack chairs,
water features, fire pits and a
free gigabyte speed broadband
network are just a few of the
amenities coming to Village at
the Peaks that will help millenni-
als feel welcome. Guests will be
able to post or hashtag directly to
the project’s five full-sized moni-
tors to connect with friends and
have electronic fun. Visitors can
charge their phones right from
their seats at a charging bar, and
the entire property is wired for
sound and light for future con-
certs or staged events.
Truth be told, traditional malls
in many parts of the country are
dying, but it may not be all bad.
In fact in Longmont, it’s looking
pretty good.
s
Allen Ginsborg
Managing director
and principal,
NewMark Merrill
Mountain States,
Longmont
