Shareology has been following changes at Galleria in Edina, MN for the past year. This shopping center is one of the few remaining vital during one of retail’s most challenging times. One strategy has been to move tenants in small spaces into larger spaces. Shareology was a tad concerned that, based on her prior experience in percentage rent at Dayton Hudson Properties, successful small tenants may be hard pressed to keep up with additional rents that come with additional square footage. Thus a great tenant in a small space risks failure when moved to a larger space. A source confirmed to Shareology a few weeks ago that Galleria is extremely careful with its tenants, and moves those who can grow and be successful into larger spaces. The same source indicated that as one of the few privately owned shopping centers, the Galleria has more freedom to make decisions, and carefully nurtures its tenants and their growth.
Moving those tenants to larger spaces leaves those smaller spaces empty behind. Galleria has been averaging about six open store fronts in the past year. A trip to Edina this weekend confirmed that the movement of tenants into larger spaces continues. Styled Life does indeed look styling in its new space. Last week, Fifth Avenue Optical moved into new space, and stopped Shareology in her tracks with its new, attractive store.
Down the hall, Shareology came to a jaw dropping stop. In the spot vacated by Fifth Avenue Optical and Styled Life was indeed another boarded up space, this one painted chocolate. The jaw dropping was caused by the sign in front of the empty space:
“Coming Spring 2010: Louis Vuitton” Wow. Double Wow. Great fit with their existing tenant Coach. (And Louis Vuitton’s nearest neighbor? Tiffany. Nice Neighborhood.)
Can retail recovery not be truly underway if Louis Vuitton is moving into Edina? Shareology left with a skipping step and a smile in her heart!
UPDATE DECEMBER 22, 2009:
Shareology was admiring the white and crystal holiday decor at Galleria, when she realized Spring for the opening of Louis Vuitton in Galleria has gotten much more specific: LV will be here in May!
Kay Roseland @KayLoire