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Thursday, July 24, 2008
Major Retail Coming to Columbia Heights
Columbia Heights is poised to become the shopping destination for the entire Washington, DC area. Hundreds of thousands of square feet of retail space are in the works including DC USA, a 500,000 sq. ft. retail complex that will include major retailers such as Target, Best Buy, Bed Bath and Beyond, and possibly Whole Foods Market! More exciting retailers are planning to open in the newly renovated Tivoli Square and other developments across Columbia Heights. Read more in the Retail News section.
As mentioned in the previous article, Michael Wilkinson of Windsor Consulting was given the opportunity to tour the DC USA retail complex this past Friday. During the tour, he had a chance to talk in depth with Drew Greenwald, president of Grid Properties (the lead developer for DC USA), about the latest retail developments at DC USA. Wilkinson was kind enough to share the information he gathered with us.
DC USA Retail Updates
Written by Michael Wilkinson
DC-USA, as most people in the neighborhood are aware, is nearing completion, with a number of the retailers even beginning to stock their shelves. Thirty interior photos here.
Target is holding a VIP reception on Tuesday, March 4th, and the city is hosting a ribbon cutting the following Saturday (the 8th), which is the retailer's "soft opening." That store officially opens to the public on Sunday the 9th. Other retailers will stagger their openings over the subsequent 6-8 weeks. Almost ready: Best Buy, Bed Bath & Beyond, Marshall's, Lane Bryant and Best Buy.
I had a lengthy conversation on Friday February 29th with GRID Properties president Drew Greenwald, and learned some very interesting things while walking through the space with him.
First and most exciting, the developer is in the late stages of negotiations with Ellwood Thompson's organic grocery. Absolutely true, and absolutely terrific. The issue hanging things up is the precise placement of the store. Both ET and another retailer are vying for overlapping pieces of the building directly behind the facade of the former post office, in the middle of the 1400 block of Irving Street. From what I understand from Greenwald, ET wants to be placed fully and directly behind the restored facade, but the other retailer needs a portion of the area for access to a second story level; ET would look like it was directly behind the old facade, but its actual space would be offset somewhat to the left or right (I didn't catch that detail). Greenwald noted that the steady support from the neighborhood had been instrumental in making the case to ET management. He also noted that, as a smaller retailer with only one store in Richmond, the Columbia Heights store represents a very significant change for them, and they have been slow and careful in going through the process of managing the big change. Additional neighborhood support and encouragement at this stage would be very helpful.
Also, on the heels of some recent reporting, Greenwald told me they are talking to REI, but that REI seems to be reluctant to see past its comfortable suburban market niche. He noted that the neighborhood letters of support to him and to CM Graham have been welcome, but that the pressure should be shifted to REI -- Greenwald is not the one who needs to be convinced. I think the impression he gets is that REI does not think urban shoppers would patronize an outdoors store like suburban shoppers do.
In addition, with about 80,000 SF of retail remaining to lease, GRID has released their initial retail broker and is seeking a new retail broker to finish the job. Specifically, they hope to shift the focus for the final push to higher-end retailers to balance the retail mix out. Greenwald noted that he's been surprised and disappointed at the resistance from two specific categories, outdoors and booksellers, mentioning REI, Barnes & Noble and Borders specifically as retailers he thought would fit in particularly well.
Also of interest: there are some important gaps along the high- profile 14th Street side of the development, representing an opportunity (if the upscale strategy works out) for the developer to change the face of 14th Street. Radio Shack, Lane Bryant, Children's Place, Payless Shoe Source, Mattress Discounters and Vitamin Shoppe are all working on their spaces. Greenwald thought adding some lifestyle retailers such as Banana Republic and Urban Outfitters, in addition to the bookstore and sporting goods/outdoors retailer, would really benefit the retail mix.
Two interesting and interconnected pieces: local retail and food options. It seems that most of the local retailers are food retailers, including a couple of locally-owned franchise businesses carrying national brand names: Quizno's, Maggie Moo's. There is also Desi's Chicken, a pretzel place and a sweet potato place. If my memory of our conversation serves me, the Quizno's franchisee has dropped out, and the original Maggie Moo's franchisee has sold the franchise to another business person, sending the lease back to the drawing board. Not surprising, but working with local retailers can be more challenging than working with large national chains. The planning cycle is much shorter. People's priorities change, financial situations sometimes don't materialize in time, etc.
Comments
Written by james on 2008-03-07 12:30:06There are malls that have a post office inside. The shops underground at Crystal City has a post office located in a shopping mall. Also, when i was in San Francisco recently there was a US Post Office located inside the Macy's at Union Square. How can we persuade the post office to consider Columbia Heights?
Local Bookstores for DC USA Written by Sarah Rimmington on 2008-03-07 14:18:58Yes to a bookstore in DC USA. Yes to a local bookstore in DC USA. Here are contact details for three:
Kramerbooks: http://www.kramers.com/contact.cfm
Olsson's Books & Records:
Politics & Prose: Carla Cohen, co-owner:
Barbara Meade, co-owner:
And let's keep on top of the Ellwood Thomspon's local market and REI outdoor gear situation. Those two would also be excellent additions to our neighborhood.
I'm sure REI can be convinced to come into the city. Outdoor stores of course do well in cities - not just suburbs. Just think about Manhattan and Toronto, two cities far bigger than Washington DC I have lived in. Both have more than one HUGE outdoor store downtown. Columbia Heights has great demographics for them already.
Groceries and a bookstore... Written by Jill on 2008-03-09 07:26:30I love the idea of having a local bookstore, but ANY bookstore would be fantastic. Ellwood Thompson's, if you're reading, you're still the one thing I'm most looking forward to at DC USA.
Best Buy Written by Surround Sound! on 2008-03-10 20:59:06Is opening on 3/27. Sign is in the CH metro
REI Written by J on 2008-03-11 10:14:21REI's flagship store in Seattle is located right in the heart of the city, and is crazy busy. I can't see how it wouldn't work here. It's absolutely ridiculous to have to go to Rockville or NoVA to get to REI. Besides, HTO has that location in Friendship Heights. They're not closing it, so it must not be too bad of a business. At least CH would be a distinct location from HTO's.
Written by Perry Place on 2008-03-12 18:25:34DC USA is the reason I moved to the area in the first palce from the U street corridor. While I'm very glad that its here, I am not at all pleased at how things are progressing on the retail front. I have a small business and orriginally approached one of the Malios brothers in charge of leasing at th time and the rental rates with no TI were pacing at Georgetown rates for a place that was being subsidized by the city. I found this not only crazy but counter productive. The neighborhood is quirky and mixed and that's why I love it. I think the developer would be better served by an outside frimn that understands a better urban mixed use plan that the stogy old boys whom most even frequent or live in the city, let alone CH proper. I was actually sad to see a Radio Shack - can't that be covered by Target and Best Buy from a product stand point? And Lane Bryant is by no means screaming "Urban" or "Up Scale." Not that it may not be needed, but the impression given to other retailers is "Fair Oaks Mall." Anne Taylor Loft would have been better.
With that said its hard to think of other stores outside of individual boutiques that might fit. But from what I know in my small dealings with Mr. Malios, $80+ psf will not attrract a smal local retailer. I think Donatelli has done a better job attracting the right tenants like the Heights, D'Vines (if they ever open - clowns), Radiance Medspa, BB&T, Five Guys, Sake Club and the like. But outside of Marshalls, Best Buy and Target, we needed a better mix of something that raised the profile of the neigborhod. I'm not asking for Barney's Co-op, but I don't think anyone should hold their breath for Borders or B&N with out something a bit more..."up-scale in nature." And that doesn't mean expensive. A great Salon for example, Erwin Gomez or something of nature. Kramer Books? Their should be categories that these guys are looking at to be filled with a local or a national proprietor and work form there as opposed to doing things the effortless way and just picking name brands that will make quick decisions and put money in the developers pocket.
Other thoughts:
Denim Bar Sur La Table A local Jeweler maybe Lululemon Athletica A stationary store Comander Salamander even??? Marvelous Market Cafe!!!
A locally owned furniture store looking to expand - ie I can't believe they could not have gotten Garden District or Timothy Pauls to open one of thier second shops north of their other 14th street locations in a hot hood like ours. (Apartment Zero, Go Mama Go, something??
ACKC - chocolate shoppe A vet Frame store Sephora???
Would have rather had a camera store than Radio Shck!! (Ritz, or whatever)
Should have courted a brand name shoe store, like a Nike Store, New Balace, Adidas or Puma. Even Aldo.
Up Against the Wall would have been great!
Aveda needs a new space cause their leese in Gtwon is up.
Eyeglasses store/boutique.
Arts n Craft Store maybe - a real one like Plaza.
Cool Bowling alley???
I don't know???
Written by james on 2008-03-12 23:09:17Commandar Salamander is actually a Up Against the Wall store.
Does anybody know if there are any plans to do anything with the building across from DC USA on Park Road? in the building that houses a bank and some other bussinesses and apartments.
Also - DC USA is a big shopping mall and many of the shops are pretty standard mall shops. If we have an organic market and a REI it will be looking pretty sweet. (wish we could have gotten a movie theatre) Sure it would be nice to have cooler shops there, but i'm more concerned about the type and quality of shops that move into the available spaces along 14th street twords Maryland. this is where we could really use some "cool" or "upscale" businesses.
Re: bookstore Written by Mt. Pleasant on 2008-03-18 15:30:22"Is there anything we could do to help the developers bring a bookseller? Are either borders or barnes and noble talking to the developers and need a push from residents? Please let us know who we could contact. I'm tired of having to go all the way to Pentagon City to get a book."
You don't have to go to Pentagon City to get a book. You have to go to Dupont Circle (Kramerbooks, Olsson's, Idle Time Books) or Van Ness (Politics & Prose).
We defn need a bookstore! Written by april on 2008-03-18 22:45:15"And Lane Bryant is by no means screaming "Urban" or "Up Scale." Not that it may not be needed, but the impression given to other retailers is "Fair Oaks Mall." Anne Taylor Loft would have been better."
Well said James! I agree with everything you stated. I would like to see better stores & also White Flint has a post office (the one on Georgia Ave. is the pitts!).
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