Towne Center West’s owner is trying to fill the former Emilio’s spot. (Photo by David Larter)
Hungry to fill a recent vacancy, the owner and developer of Towne Center West is taking an unconventionally public route to lure in a new restaurant tenant.
The Breeden Company is running ads in the Richmond area offering a would-be tenant $75,000 in cash as an incentive to set up a restaurant in the mixed-use development just west of Short Pump Towne Center.
“Receive a $75,000 contribution to establish an eclectic/trendy restaurant at Towne Center West,” the advertisement reads.
Breeden, a Hampton Roads-based developer, is trying to fill a vacancy that cropped up last week when Emilio’s shut down.
“Emilio’s was great,” Breeden principal Torrey Breeden said. “We liked having them in there, and we were sad to see them go. But we think the space is still best suited for a restaurant. When Emilio’s left, there was still a lot of equipment in the space, like a range hood. It’s still got the layout, the plumbing and everything.”
Breeden said the $75,000 promotion is to help restaurateurs who might need a little help with startup capital. The ad specifies that potential users must meet the credit standards and lease terms Breeden is looking for, but doesn’t say what those are.
Breeden started construction on the Towne Center West mixed-use development in 2008. Retail at the property has struggled a bit in recent months: Of 21 strip retail storefronts at the center, seven are vacant, a 33 percent vacancy rate.
“We built some spec retail out there, hoping we could fill it up, but it’s been challenging,” Breeden said. “But if someone wants to open up out there but doesn’t have the capital, we’d like to help with that.”
The 33 percent vacancy rate does not include out parcels at the property currently occupied by Ethan Allen Furniture, Kanpai Japanese Steakhouse, Bright Horizons Child Care and Virginia Eye Institute. Shamin Hotels owns the Hilton hotel at Towne Center West.
Emilio’s was open for three years at the shopping center before it closed. Italian restaurant Osteria La Giara closed after barely six months as a tenant there.
Rent in Towne Center West runs from $20 to $30 per square foot per year.
Jim Ashby, a retail broker with Cushman & Wakefield | Thalhimer who has done extensive work in the Short Pump area, said landlords offering incentives to restaurants is a fairly common practice.
“Oftentimes landlords will offer an allowance to restaurants because the buildout for them is so pricey for anything above and beyond just a vanilla shell,” Ashby said.
Robby Brownfield, a retail broker with CBRE who also has some experience in Short Pump, said that $75,000 is a healthy allowance for a space that is already built out. Brownfield said that restaurants can struggle at times in Short Pump because of the competition in the area.
“The market is so saturated out there,” he said. “Every time a new restaurant comes out there, the restaurant dollars in the market thin out. The chain restaurants like your Olive Gardens or your Bertucci’s likely do higher volumes than the locals, but they are probably not outperforming similar restaurants. I don’t think any of their top performing restaurants are in Short Pump.”
Towne Center West’s owner is trying to fill the former Emilio’s spot. (Photo by David Larter)
Hungry to fill a recent vacancy, the owner and developer of Towne Center West is taking an unconventionally public route to lure in a new restaurant tenant.
The Breeden Company is running ads in the Richmond area offering a would-be tenant $75,000 in cash as an incentive to set up a restaurant in the mixed-use development just west of Short Pump Towne Center.
“Receive a $75,000 contribution to establish an eclectic/trendy restaurant at Towne Center West,” the advertisement reads.
Breeden, a Hampton Roads-based developer, is trying to fill a vacancy that cropped up last week when Emilio’s shut down.
“Emilio’s was great,” Breeden principal Torrey Breeden said. “We liked having them in there, and we were sad to see them go. But we think the space is still best suited for a restaurant. When Emilio’s left, there was still a lot of equipment in the space, like a range hood. It’s still got the layout, the plumbing and everything.”
Breeden said the $75,000 promotion is to help restaurateurs who might need a little help with startup capital. The ad specifies that potential users must meet the credit standards and lease terms Breeden is looking for, but doesn’t say what those are.
Breeden started construction on the Towne Center West mixed-use development in 2008. Retail at the property has struggled a bit in recent months: Of 21 strip retail storefronts at the center, seven are vacant, a 33 percent vacancy rate.
“We built some spec retail out there, hoping we could fill it up, but it’s been challenging,” Breeden said. “But if someone wants to open up out there but doesn’t have the capital, we’d like to help with that.”
The 33 percent vacancy rate does not include out parcels at the property currently occupied by Ethan Allen Furniture, Kanpai Japanese Steakhouse, Bright Horizons Child Care and Virginia Eye Institute. Shamin Hotels owns the Hilton hotel at Towne Center West.
Emilio’s was open for three years at the shopping center before it closed. Italian restaurant Osteria La Giara closed after barely six months as a tenant there.
Rent in Towne Center West runs from $20 to $30 per square foot per year.
Jim Ashby, a retail broker with Cushman & Wakefield | Thalhimer who has done extensive work in the Short Pump area, said landlords offering incentives to restaurants is a fairly common practice.
“Oftentimes landlords will offer an allowance to restaurants because the buildout for them is so pricey for anything above and beyond just a vanilla shell,” Ashby said.
Robby Brownfield, a retail broker with CBRE who also has some experience in Short Pump, said that $75,000 is a healthy allowance for a space that is already built out. Brownfield said that restaurants can struggle at times in Short Pump because of the competition in the area.
“The market is so saturated out there,” he said. “Every time a new restaurant comes out there, the restaurant dollars in the market thin out. The chain restaurants like your Olive Gardens or your Bertucci’s likely do higher volumes than the locals, but they are probably not outperforming similar restaurants. I don’t think any of their top performing restaurants are in Short Pump.”
There are a few developers(not many) w/ deep pockets downtown that should consider something like this.
I currently work at the Wingate – Short Pump hotel and am in the Sales Department. It’s sad to see Emilio’s go! I’m not terribly sure they had the right models and ideas for Short Pump. I have a quick back story that helps support my reasons. Lately (past 6 months) in Short Pump restaurants (2) have been dropping by the hotel and speaking with our front desk associates and offering them incentive programs for referrals. It’s a great idea on a number of fronts – restaurants want patrons -> hotels have out of town guests who need to eat… Read more »