North Dallas: Galleria

[Proquest20]

Just to add a bit more context, in the past year, Galleria Dallas has added and lost the following stores:

New to Galleria Dallas:
3.6.5 (Local?)
Kittenish (stayed briefly; see Departed Galleria Dallas list below)
3:16 Collection (Local)
KPop Trove (Local)
Knots & Loops (Local)
Deseri (Local)

Departed Galleria Dallas:
Green Biotics
T-Mobile
Image
Tippy Tot Shoes
Papaya
Bearfruit Jewelry
Bonsai Paper Company (local)
Kittenish
Toni & Guy
Cotopaxi
Express
Eye Candy Courture (Local-ish)
Marciano

365+ isn’t local btw, it’s one of those Image/Fashion Q type of filler stores that sell wholesale clothes. I’m pretty sure I’ve seen it in another state before. Image used to be in a space by H&M. I think 365+ and Image might actually be the same store.

[Proquest20]

There’s no way Cotopaxi was meant to be permanent, they kept the same storefront as Apricot Lane. Eye Candy wasn’t a big chain though, think their other location was in the mid-range wing of Houston’s Galleria.

Well, it was more than a seasonal popup. Perhaps a test-run which apparently failed. Agreed regarding Eye Candy (I think the other store was/is in Willowbrook in northwest Houston. So that leaves us with 3 national chains and a "local" that pulled out and 2 locals that came in. Not a good trajectory. Regarding Express, it's almost inconceivable that Galleria Dallas wouldn't have been willing to reduce their rent if that's all it would have taken to keep them.

To address your last point, I suspect it's a combination of 2 factors at play.

1. Delusions of grandeur. Because they still have Nordstrom and a few luxury boutiques, they're under the impression that they can charge a premium on rent as other stores and shoppers alike are beating down the door to replace them.

2. The fact that the Galleria has a *TON* of debt it needs to pay off, on top of a lor of deferred maintenance to take care of *AND* it needs the cash flow to help eventually fund the forthcoming redevelopment in whatever form/scope that may be (that's probably still in flux & uncertain as well), thus they can't afford to reduce rents even if they wanted to without hurting its own balance sheet/profitability.

A lot of malls have Nordstrom, the majority of their locations are on par with Dillard’s and Belk. It’s just their flagship stores (Galleria Houston, NorthPark) that are really luxe, the Galleria Dallas location cutting down on square footage and their designer selection should be a sign the Galleria needs to come to terms that they’re just a regular mall. For a mid range mall, it’d a great mall. For one that wants to be upscale, it could be doing way better.

[Proquest20]

One last thing:

I'm at the point where I dread coming into this thread whenever there's a new post. Other than the recent Uniqlo announcement (and the wind has even been taken out of that since they're also opening at Parks Mall & Stonebriar), it's been nothing but depressing updates whether it's more national/upscale retailers vacating the mall or the mall's management only bring in these no-name mom & pop boutiques to replace them.

It's almost night & day from the NorthPark and Stonebriar threads...

Stonebriar has really stepped up it's game. A lot of the local (generic) stores have gone to make way for trendy national retailers. I still have faith in Galleria, they just need to find the right recipe for success.

I wish they’d give it a refresh so it doesn’t feel like I’m stepping back into 2006. I saw some renderings a while ago but I don’t think they were meant to be realistic.

Legacy West being next door seems to be a big help.

[Addison]

One last thing:

I'm at the point where I dread coming into this thread whenever there's a new post. Other than the recent Uniqlo announcement (and the wind has even been taken out of that since they're also opening at Parks Mall & Stonebriar), it's been nothing but depressing updates whether it's more national/upscale retailers vacating the mall or the mall's management only bring in these no-name mom & pop boutiques to replace them.

It's almost night & day from the NorthPark and Stonebriar threads...

Stonebriar has really stepped up it's game. A lot of the local (generic) stores have gone to make way for trendy national retailers. I still have faith in Galleria, they just need to find the right recipe for success.

I wish they’d give it a refresh so it doesn’t feel like I’m stepping back into 2006. I saw some renderings a while ago but I don’t think they were meant to be realistic.

Legacy West being next door seems to be a big help.

Better than the Galleria, which feels as though you're stepping back into 1996...

[Proquest20]

Stonebriar has really stepped up it's game. A lot of the local (generic) stores have gone to make way for trendy national retailers. I still have faith in Galleria, they just need to find the right recipe for success.

I wish they’d give it a refresh so it doesn’t feel like I’m stepping back into 2006. I saw some renderings a while ago but I don’t think they were meant to be realistic.

Legacy West being next door seems to be a big help.

Better than the Galleria, which feels as though you're stepping back into 1996...

Really? I feel like the common areas seem quite modern, I like the blues, the cloud structures in the air, the glass ceiling… palm trees seem out of place in Texas but ig are a nice touch. The parts of the Galleria that need work? Macy’s, especially the parking garages (that stairwell is something out of a horror film)… the “front” of the Galleria (west side) looked so much better when it was fully leased, but looks a lot better (cleaner and less cluttered to me) than Stonebriar’s (view from south side). Visually, I have to give it to Galleria. Would maybe like Stonebriar a little more if it had a major facelift.

[acclar11]

Well, it was more than a seasonal popup. Perhaps a test-run which apparently failed. Agreed regarding Eye Candy (I think the other store was/is in Willowbrook in northwest Houston. So that leaves us with 3 national chains and a "local" that pulled out and 2 locals that came in. Not a good trajectory. Regarding Express, it's almost inconceivable that Galleria Dallas wouldn't have been willing to reduce their rent if that's all it would have taken to keep them.

To address your last point, I suspect it's a combination of 2 factors at play.

1. Delusions of grandeur. Because they still have Nordstrom and a few luxury boutiques, they're under the impression that they can charge a premium on rent as other stores and shoppers alike are beating down the door to replace them.

2. The fact that the Galleria has a *TON* of debt it needs to pay off, on top of a lor of deferred maintenance to take care of *AND* it needs the cash flow to help eventually fund the forthcoming redevelopment in whatever form/scope that may be (that's probably still in flux & uncertain as well), thus they can't afford to reduce rents even if they wanted to without hurting its own balance sheet/profitability.

A lot of malls have Nordstrom, the majority of their locations are on par with Dillard’s and Belk. It’s just their flagship stores (Galleria Houston, NorthPark) that are really luxe, the Galleria Dallas location cutting down on square footage and their designer selection should be a sign the Galleria needs to come to terms that they’re just a regular mall. For a mid range mall, it’d a great mall. For one that wants to be upscale, it could be doing way better.

I'm pretty sure the Galleria Nordstrom doesn't have a Collectors section anymore.

[Proquest20]

To address your last point, I suspect it's a combination of 2 factors at play.

1. Delusions of grandeur. Because they still have Nordstrom and a few luxury boutiques, they're under the impression that they can charge a premium on rent as other stores and shoppers alike are beating down the door to replace them.

2. The fact that the Galleria has a *TON* of debt it needs to pay off, on top of a lor of deferred maintenance to take care of *AND* it needs the cash flow to help eventually fund the forthcoming redevelopment in whatever form/scope that may be (that's probably still in flux & uncertain as well), thus they can't afford to reduce rents even if they wanted to without hurting its own balance sheet/profitability.

A lot of malls have Nordstrom, the majority of their locations are on par with Dillard’s and Belk. It’s just their flagship stores (Galleria Houston, NorthPark) that are really luxe, the Galleria Dallas location cutting down on square footage and their designer selection should be a sign the Galleria needs to come to terms that they’re just a regular mall. For a mid range mall, it’d a great mall. For one that wants to be upscale, it could be doing way better.

I'm pretty sure the Galleria Nordstrom doesn't have a Collectors section anymore.

That's what I mean when I say they got rid of all their designer selection. I used to see Prada bags as I walked into the Galleria, these days I don't.

[acclar11]

A lot of malls have Nordstrom, the majority of their locations are on par with Dillard’s and Belk. It’s just their flagship stores (Galleria Houston, NorthPark) that are really luxe, the Galleria Dallas location cutting down on square footage and their designer selection should be a sign the Galleria needs to come to terms that they’re just a regular mall. For a mid range mall, it’d a great mall. For one that wants to be upscale, it could be doing way better.

I'm pretty sure the Galleria Nordstrom doesn't have a Collectors section anymore.

That's what I mean when I say they got rid of all their designer selection. I used to see Prada bags as I walked into the Galleria, these days I don't.

They used to have YSL, Burberry, and Prada sections in the handbag area, and now just have Marc Jacobs and Tory Burch. The men's section is basically all athleisure brands, and the women's area isn't anything special. The nicest brands I saw last time were Vince., Lafayette 148, and Veronica Beard.

[Proquest20]

I'm pretty sure the Galleria Nordstrom doesn't have a Collectors section anymore.

That's what I mean when I say they got rid of all their designer selection. I used to see Prada bags as I walked into the Galleria, these days I don't.

They used to have YSL, Burberry, and Prada sections in the handbag area, and now just have Marc Jacobs and Tory Burch. The men's section is basically all athleisure brands, and the women's area isn't anything special. The nicest brands I saw last time were Vince., Lafayette 148, and Veronica Beard.

Basically the same as Stonebriar

[Tucy I]

To address your last point, I suspect it's a combination of 2 factors at play.

1. Delusions of grandeur. Because they still have Nordstrom and a few luxury boutiques, they're under the impression that they can charge a premium on rent as other stores and shoppers alike are beating down the door to replace them.

2. The fact that the Galleria has a *TON* of debt it needs to pay off, on top of a lor of deferred maintenance to take care of *AND* it needs the cash flow to help eventually fund the forthcoming redevelopment in whatever form/scope that may be (that's probably still in flux & uncertain as well), thus they can't afford to reduce rents even if they wanted to without hurting its own balance sheet/profitability.

The lender took the property back from the borrower. The debt is gone.

That's not how debt works (it doesn't just "go away" when the creditor takes possession of the lien on a property).

Someone, often times the borrower and/or the benefactor, ends up paying for it somehow. UBS may have been released of its obligation to MetLife, but as far as the Galleria itself (if not with evictions), it's with damage to their credit reputation (making future borrowing much more expensive), the renegotiation of the terms for the unpaid debt (I.E. management could be mandated to bring in a certain amount of revenue and keep expenses at a certain level until its paid off) and the lost equity.

As far as the property and its operations are concerned, that is exactly how it works. Galleria Dallas is no longer burdened by the debt. The former owner or a parent company guarantor may still owe money on the debt if the debt was recourse, but that has no impact on the operations of the shopping mall. The former owner is no longer involved in the management of the mall.

[acclar11]

https://www.tdlr.texas.gov/TABS/Search/ ... 2024014672
Lululemon is expanding, but not sure to which storefront.