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An Estimate of Retail Sales & Sales Tax at the Proposed Shops at Highland Village
Client: The Regency Centers Corporation
Regency Centers and Hermansen Land Development, Inc. plan to develop a “lifestyle” retail center consisting of approximately 345,000 square feet of retail and restaurant space on 45 acres of land located by Highway 407 Justin Road, Chinn Chapel Road and Long Prairie Road in Highland Village, Texas. Larger tenants of The Shops at Highland Village are expected to include a movie theater of approximately 51,000 square feet, and a 27,000-square-foot Barnes & Noble store. Apparel, home furniture and accessory tenants are expected to include Chicos, Cold Water Creek, Ann Taylor Loft, Banana Republic, Gap and Gap Kids, Victoria Secret, American Eagle, William Sonoma, Z Gallerie, and Sharper Image. The project will include office space and site amenities including jogging trails, a park, and a fountain as well as high-quality signage, landscaping, lighting and architecture.Regency Centers engaged Gruen Gruen + Associates (GG+A) to estimate the sales and sales tax and property tax revenue the proposed development will generate. To make this estimate, GG+A estimated the relationship between the demand for and supply of specialty, “lifestyle” retail uses emphasizing apparel, home furnishings, eating and drinking and entertainment in relevant geographic areas. GG+A prepared a quantitative model of demand-supply in the relevant market area. GG+A also estimated the typical sales productivity of the types of tenants anticipated for the center and reviewed the sales performance of other lifestyle centers and considered the competitive advantages and disadvantages likely to apply to the project.
GG+A’s research included interviews with retail real estate owners and developers, brokers and merchants and analysis of demographic and income data and retail sales and space data in addition to site and property inspections.