🔒Outdoor shopping center Evergreen Walk reverses high vacancy rate by shifting focus to experiential offerings

The brick-and-mortar retail sector took a major hit from the emergence of e-commerce, before the pandemic delivered another blow and forced shopping centers throughout the U.S. to close for months.

By 2021, following the height of COVID-19-related lockdowns, The Shops at Evergreen Walk in South Windsor recorded the highest vacancy rate in its history of around 50%, according to one estimate.

Since then, the outdoor lifestyle shopping center has experienced a strong comeback, adding 14 new tenants in the last 18 months, which has brought the 350,000-square-foot property to a record-high occupancy rate of 90%.

The turnaround, experts said, has been driven by a new management team and strategy for attracting customers, with a greater focus on experiential offerings and community integration to stay relevant in the face of online competition.

The Shops at Evergreen Walk is owned and managed by a joint venture between Prudential Investment Management, part of the original development team, and Greenwich-based Brand Street Properties.

Paul Brandes, principal of Brand Street Properties, had previously been affiliated with Charter Realty & Development, which took over management of Evergreen Walk in 2020. He has since started his own company.

Brand Street Properties also co-owns and/or manages Blue Back Square in West Hartford, and Westport’s Bedford Square, a mixed-use residential and retail development.

Since taking over management of Evergreen Walk, Brandes has led a rebranding effort that has included a new name, website, logo, signage and outdoor enhancements, as well as a shift in retailer mix, he said.

New tenants that have been added in the past few years include Shake Shack, Golf Lounge 18, La-Z-Boy, and new anchor store Whole Foods. Two more retailers, Lululemon and J Crew Factory, are set to open in late 2024 or early 2025.

Changing marketplace

Originally conceived as a New England village-style outdoor shopping center, Evergreen Walk debuted 20 years ago. It now has roughly 70 retail sites, including 14 of its original tenants.

Brandes said Evergreen Walk’s evolution mirrors the broader shifts in retail strategy over the past two decades, moving toward experiential tenants that drive repeat visitors.

“Whether you’re selling a product, services, dining or offering health and fitness options, you want to create an experience that’s satisfying, enjoyable and becomes part of people’s repetitive routine,” he said.

“This project is part of that evolution,” Brandes notes, highlighting the transition from traditional mall retailing to outdoor lifestyle centers that become a hub for daily activities, including dining and fitness, in addition to shopping.

Recent additions to the property reflect this strategy shift. Whole Foods has replaced Highland Park Market, serving as a stronger anchor to drive daily foot traffic, while the Goddard School and new health and wellness tenants have further diversified the property’s offerings, Brandes said.

Evergreen Walk has also capitalized on the increased demand for outdoor spaces brought on by the pandemic, adding walking trails and expanding outdoor dining options. The new Golf Lounge has proven popular, further enhancing the center’s experiential appeal.

The 12,000-square-foot indoor facility has 11 bays with golf simulators that give golfers the experience of playing at more than 300 courses from around the world. It also features a full restaurant and bar.

Evergreen Walk’s “barbell” design, with anchor stores at both ends of the property and a long “Main Street” span in between, allows for flexibility in accommodating various tenant sizes, Brandes said.

Rather than expanding Evergreen’s footprint, Brand Street has focused on adapting existing spaces to meet tenants’ changing needs. That has included combining two smaller retail spaces to create a larger one, or subdividing one larger space into two smaller ones, Brandes said.

George McKerrow, CEO of Ted’s Montana Grill, which has been a tenant at Evergreen Walk since 2005, said the shopping center’s new tenant mix has helped attract more customers.

While restaurants were hard hit by the pandemic, sales at Ted’s Evergreen Walk location have recovered strongly, to about 80% of pre-pandemic levels. As a result, the national restaurant company recently renewed its lease in South Windsor for at least another five years, McKerrow said.

Since 2021, foot traffic at Evergreen has increased more than 40%, which is the highest increase for any shopping center in the Hartford market, according to data from Placer.ai.

Evergreen Walk has also spurred nearby development — including a 200-unit Cambria Suites hotel and 165-apartment unit Residences at Evergreen Walk apartment complex— that has brought more people to the area.

Commercial activity has also increased, with new restaurants and businesses opening nearby, including Starbucks, Chipotle and a Costco.

Trendy concepts

Matt Halprin, president and chief operating officer of Wethersfield-based New England Retail Properties, said one challenge that lifestyle centers in the Northeast face is seasonality.

They tend to thrive during warmer-weather months, but volume “diminishes after the holidays,” he said.

Tenants like Whole Foods, however, will help drive foot traffic on a year-round basis, and offset the decline of traditional retail anchors.

But Halprin cautioned against overreliance on trendy concepts like golf lounges and trampoline parks that are popping up in large retail centers, which he views as unsustainable long-term solutions.

Instead, he emphasizes the importance of data-driven decision-making and understanding customer behavior to stay relevant in today’s competitive retail environment.