Galleria at Sunset adding half-dozen new restaurants

The competition for shoppers has intensified as Las Vegas has emerged from the Great Recession, and existing malls like the Galleria at Sunset in Henderson have done more than simply put on a fresh coat of paint to remain a retail destination.

The mall, which measures 1 million square feet and opened in 1996, finished $7 million in interior renovations before the 2014 holiday shopping season that included creating more space for events. Its owners, Forest City Enterprises, are adding a $25.5 million, 30,000 square-foot expansion that will bring six new restaurants in the coming months. That expansion also includes a 12,000 square-foot outdoor plaza for events.

The mall changed flooring and colors from its Southwest motif and renovated bathrooms and the food court. It’s about giving the mall a more modern and sophisticated appearance after first making sure the economy stabilized and bounced back as it has, said Heather Valera, the mall’s director of marketing.

“As one of the veteran centers in the valley, it’s important to maintain a fresh and exciting appearance,” Valera said. “As new centers were coming online and projects were in the pipeline, we knew it was time to start updating our center to be competitive in a very competitive retail environment.”

GREATER COMPETITION

The retail marketplace in Las Vegas became more crowded last fall with the opening of Downtown Summerlin, a 1.6 million square-foot retail and entertainment center. Developers have gravitated more to open-air shopping centers like Downtown Summerlin and Town Square, which opened in 2007 and has more than 1.5 million square feet of retail and entertainment space.

The Galleria at Sunset has featured only two full-service restaurants in Red Robin and Chevys Fresh Mex in addition to its food court. Valera said dining options were lacking and customers made it clear to them they wanted more at the Galleria.

“I think the mall concept is alive and well, and the way we have been able to keep our foothold is by adapting and adding entertainment value and adding restaurants,” Valera said. “There are so many more facets to the retail experience. It’s just not coming in visiting a few stores. It’s having some entertainment components and restaurant options and something for everyone. That’s how we have been able to be successful for almost 20 years is by making those adaptations.”

Only three of the six restaurants have been announced but details about the other three will be released in the coming months. Sugar Factory will open its third restaurant in Las Vegas and first off the Strip by the end of the summer. Bravo!, part of an Italian restaurant group that operates Brio Tuscan Grille, will open in late April. Larsen’s Grill, which is part of a restaurant chain with five restaurants in California, is opening its first restaurant in Las Vegas in the spring. Five of the restaurants will include patio seating.

Brian Gordon, principal of consulting firm Applied Analysis, said what’s happening with the Galleria renovation and expansion and the opening and renovations of other retail centers across the valley is a reflection of retailers taking advantage of the economic recovery. During the economic downturn, few made investments in their properties, but as they saw trends improve, they took advantage of the lower construction costs, he said. The properties must stay current to not only attract customers but tenants as well, he said.

CONSUMERS BOUNCING BACK

“We have seen a lot of investment take place in the retail market with Downtown Summerlin on one end of the valley and now investments in some of the existing malls, including the Boulevard Mall, Fashion Show Mall and the Galleria,” Gordon said. “It signals that mall operators and owners of retail real estate have confidence in where the Las Vegas market is heading. That’s probably not something they were saying three, four or five years ago.

“We have seen a dramatic shift in consumer spending. Taxable retail sales are up 8-plus percent on the year (in 2014 over 2013 in Clark County). Consumers have crawled out of their shells and are spending in all areas, and not only retailers but retail mall operators are looking to take advantage of the improving fundamentals,” he also said.

Gordon said the Galleria at Sunset has a prime location with access off the U.S. Highway 95, and he called it a “key player in the retail market,” especially in Henderson.