Esplanade - basically vacant (apartments, house, construction)

[Alexico]

Originally Posted by stasi_crystals

Borders across the street and the two story building with restaurants they tore down is gone, there's not much of a vibe like there used to be. But glad Saks is still making business.

I wonder when the borders spot will be filled? it has been empty for maybe 2 years. The family owned bookstore down the steet is gone too I noticed

I noticed in front of town and country another office building is going up where that old steak house used to be.

[wit-nit]

In the AZ Republic Business section a few months ago it mentioned that over 50% of the strip malls in the Metro area are in serious financial trouble, that the ppty owners were either behind in payments, in foreclosure, or are near foreclosure. And that is because most of their lessees have gone out of businees and left. A strip mall near us that sold for 5.5 million dollars 3 years ago to a California buyer went into forclosure 1 year ago and just recently new buyers bought it for 2.5 million.

[azriverfan.]

Originally Posted by nitram

In the AZ Republic Business section a few months ago it mentioned that over 50% of the strip malls in the Metro area are in serious financial trouble, that the ppty owners were either behind in payments, in foreclosure, or are near foreclosure. And that is because most of their lessees have gone out of businees and left. A strip mall near us that sold for 5.5 million dollars 3 years ago to a California buyer went into forclosure 1 year ago and just recently new buyers bought it for 2.5 million.

It doesn't help that these strip mall owners don't reduce their rent to accomodate the economic times. Many of the businesses that lease space from these owners just moved for cheaper rates elsewhere. No one likes to admit but a lot of this is attributed to poor business practices on behalf of these strip mall owners. They were confident they could replace those tenants and lo and behold they couldn't.

[pbenjamin]

Originally Posted by Alexico

I wonder if the cinema is holding up?

I've been there a couple of times in the few months. We normally go to Arizona Center, but the Esplanade is the next choice if Arizona Center doesn't have the movie we want to see. In these cases it was The Artist and the 75th Anniversary showing of Casablanca. The theatre has been converted to AMC's "Dine In Theatre" concept. They seemed to be doing a reasonable business. I am not sure that I buy into the concept, although having a waiter bring drinks, etc. was nice and the seating was very comfortable. Pricey, though.

[wit-nit]

Originally Posted by azriverfan.

It doesn't help that these strip mall owners don't reduce their rent to accomodate the economic times. Many of the businesses that lease space from these owners just moved for cheaper rates elsewhere. No one likes to admit but a lot of this is attributed to poor business practices on behalf of these strip mall owners. They were confident they could replace those tenants and lo and behold they couldn't.

You are 100% exactly right. We have many friends who are retailers in strip malls and that is their biggest complaint. And most landlords live out of state, a good portion live in CA.

[ReadyFreddy]

I wonder if the very exclusive malls have an obligation to the retailers to keep things exclusive? If I was a high-end store, I wouldn't want Joey's Discount Shoes & Appliances moving in when Anthropologie moved out.

[sh9730]

Ready,

Usually the rents themselves control that - Joes Shoes cant be "discount" if they are paying higher end rents...

[ReadyFreddy]

Well, that's what I meant. The landlords can't start cutting rents when times are tough or then you could attract some less exclusive shops.

[Valley Native]

Originally Posted by azriverfan.

Plus it doesn't help that these places don't reduce their rents and try to lure business. Most of these people are stodgy and feel entitled and guess what, businesses leave. We are seeing that with Chandler Mall. Everything is moving to San Tan Village because Chandler Mall has not lowered their rates and tenants are leaving. When the economy took a hit, they didn't lower their rates.

Generally, you're correct about the high rents ... however, Esplanade, and many other locations around the 24th Street/Camelback area & Biltmore specifically target a higher calliber of people. That whole area pretty much caters to wealthier customers who want to shop & dine in higher end establishments. Thus, the rents are going to be higher in those types of developments. Esplanade isn't a big box center or an outlet mall, and shouldn't have to reduce rental rates to compete with those other types of places.

Originally Posted by pbenjamin

I've been there a couple of times in the few months. We normally go to Arizona Center, but the Esplanade is the next choice if Arizona Center doesn't have the movie we want to see. In these cases it was The Artist and the 75th Anniversary showing of Casablanca. The theatre has been converted to AMC's "Dine In Theatre" concept. They seemed to be doing a reasonable business. I am not sure that I buy into the concept, although having a waiter bring drinks, etc. was nice and the seating was very comfortable. Pricey, though.

I'm glad they upgraded that theatre to a dine in type of establishment. Yes, it is more pricey than a regular movie theatre, but it's really not all that much more costly when you consider the added amenities. It's worth it, and it's just what the Esplanade needed. The added cost didn't seem to hurt their business any. The theatre has always been crowded the times I have been there recently.

[azriverfan.]

Originally Posted by Valley Native

Generally, you're correct about the high rents ... however, Esplanade, and many other locations around the 24th Street/Camelback area & Biltmore specifically target a higher calliber of people. That whole area pretty much caters to wealthier customers who want to shop & dine in higher end establishments. Thus, the rents are going to be higher in those types of developments. Esplanade isn't a big box center or an outlet mall, and shouldn't have to reduce rental rates to compete with those other types of places.

The economy impacted everyone including the wealthy. Not reducing rates to accomodate your high end retailer was bad business. They are losing far more money with those spots being vacant than reducing rent. I don't think people are going to make a distinction between being located in the Esplanade versus being accross the street. Most people just view it as the Biltmore. And even if a restaurant/retailer had to relocate, there are many high end locales unlike 12 years ago when the Esplanade was one of the only players in town. That's no longer the case. They are facing stiff competition from places like Kierland Commons, and Scottsdale Quarter. I'm seeing that with Chandler Fashion Square. They didn't reduce rates and many of their tenants departed for San Tan Village. Guess what happened to those empty spots in the mall.......they are still empty; the mall is losing much more money with those spaces being vacant than reducing their lease.