On my first day working with Regency Centers, we covered at great length multiple aspects of commercial development property management. Two aspects which I found particularly interesting were the visual element of mixed use commercial developments, and the Halo effect. To begin with the visual element of retail, I was told that “retail is theater” and that bad “theater” ultimately made for less success in retail. Essentially, storefront appearance is incredibly important because it makes customers feel special; it makes them want to shop. So, when regency develops new shopping centers, or when they acquire existing centers and re-develop them, a great degree of attention is given to the little visual details that enhance the shopping experience. I got to see this “theater” at work in Cameron Village, which is owned and managed by Regency Centers. The Halo affect was also an incredibly intriguing detail that I learned about. Essentially, the Halo affect is something that occurs with tenants in shopping centers, when one tenant will pay higher rent to be near a premium tenant. As it pertains to Regency Centers, they experience this very often with Whole Foods Market; retailers will pay higher rent to be next to a Whole Foods because it attracts affluent customers. Additionally, the Whole Foods will expect to pay lower rent because they are aware that other tenants will pay inflated rent in order to be in close proximity to them.
