Off-Market, On Our Radar: How CBRE Locked in a Top Southlake Spot for Tyler’s
Proprietor Dale Grimes had earned much success with Racquet & Jog in Tyler and its sister store Tyler’s in Austin, and wanted to grow his business to meet demand throughout Texas. He had crossed paths with CBRE’s Greg Pierce while working on his Austin lease and came away with good advice that helped him in his lease negotiations; advice Greg had given as a friend and not as a broker. He felt that he could trust Greg to put his business’ interests first, so he sought his help to bring Tyler’s to Dallas. They worked together placing Tyler’s first Dallas/Fort Worth location at Lover’s Lane and the Dallas North Tollway, and the success of this store encouraged Dale to explore more opportunities in DFW.
Dale wanted to find another DFW location but was unsure how to find an area that would be as prosperous as the location at Lover’s Lane and the Tollway. In addition, the increasing demand for Tyler’s wares in DFW meant this hot retailer was rapidly outgrowing its 8,000 square foot size. Dale was concerned as to how to increase the size of his store without decreasing his sales per square foot. CBRE needed to find him a second DFW location that was larger than the average size of his current stores, and that location needed to have a large population with similar shopping habits as his customers at Lover’s Lane and the Tollway in order to support this growth.
Define the target market and site criteria
CBRE worked with Dale to get a thorough understanding of the Tyler’s customer and conducted demographic studies to outline the key demographic factors that were desired for a second DFW location. The right combination of population, household incomes and education levels helped make the Lover’s Lane location a success. We used those elements as our standard and created demographic maps to ensure that areas under consideration had the right kind of customers close by. We were able to quickly determine that Southlake had the ideal mix of demographics and traffic to make it the next market on the radar for Tyler’s.
Identify off-market leads
Greg was able to benefit from CBRE’s internal network to learn of a potential new opening at Southlake Town Square before it hit the market. The space was perfect for Tyler’s; it was a former Crate and Barrel, located in the heart of the project and close to other great tenants like Anthropologie and the Apple Store. In addition, our research had shown that the sales per square foot figures at Southlake Town Square were high enough to support making the leap to a larger footprint for Tyler’s. The location had 10,200 square feet on the ground floor and 5,500 square feet of basement, which was another plus for this growing retailer. Greg knew that they would need to act fast to secure this prime location before its availability became widespread knowledge, so Dale dropped everything and traveled to Southlake to tour the space, which he agreed was ideal for Tyler’s next location.
Structure the deal to meet our client’s needs
As a one man ownership, Dale was being pulled between the rapidly advancing lease negotiations for Southlake and the ongoing remodel of another location. He became concerned that opening Southlake on the Landlord’s short timeline would be too straining on his infrastructure, and contemplated cooling down on the deal to focus on existing stores. In addition, it was 2010 and the effects of the recession were still being felt nationwide and many retailers were hesitant to expand during an economic downturn. Greg knew that going into a high class center like Southlake Town Square would elevate the Tyler’s brand and didn’t want his client to lose out on an incredible opportunity. To make sure that Dale was comfortable with proceeding with the deal, Greg returned to the Landlord to negotiate additional time for Tyler’s to construct and open.
The opening of the Southlake Tyler’s was such a triumph that in the first four months they were open for business, their sales exceeded that of the entire year’s sales for most of their other locations. With the opening of Southlake, Tyler’s had become a well-known and highly sought-after Texas retailer. Since opening the Southlake location, CBRE has continued our relationship with Tyler’s and Racquet & Jog by:
- Opening a location in The Woodlands where sales outperformed all other locations immediately after opening. This was another off-market site that we were able to find for our client before it even went on the market.
- Doubling the size of the original Racquet & Jog location in Tyler, Texas
- Renewing lease for the location on the Drag in Austin for an additional 10 years
- Expanding an existing space at the Villages at Westlake by 2,000 square feet and extending the lease for 10 years
- Consulting on a purchase of a 25,000 square foot building on North Lamar and South 183 in Austin to be used as a corporate office, outlet store and distribution center for the state
- Completing a lease for 17,000 square feet at WestBend in Fort Worth
— Dale Grimes, owner of Tyler's and Racquet & Jog
“Greg has become a great friend and trusted Broker. His expertise in the industry combined with CBRE’s top-notch resources has helped Tyler’s open our most successful locations across Texas.”
Trust is key
Establishing trust is the essential first step to guiding our clients through the execution of a steady and successful growth strategy. By earning our client’s trust, we were able to provide guidance with tough decisions.
Understand your client’s needs and fill them
Understanding our client’s target demographic and strict site criteria helped us to pinpoint locations that provided their ideal mix of customers and traffic to ensure their success.
CBRE’s off-market knowledge serves our clients well
Utilizing CBRE’s network of informed Brokers for off-market information helped gain a competitive advantage for our client by identifying and locking in a great site before it even went on the market.