Wednesday, October 15th, 2008

Photo

<p>A considerable number of vacant storefronts dot the landscape of
Westwood Village.</p>

A considerable number of vacant storefronts dot the landscape of Westwood Village.

Photo

<p>Graphic by RAY GONZALES/Daily Bruin Senior Staff<br />
Photos by JONATHAN HARNISH/Daily Bruin<br

Graphic by RAY GONZALES/Daily Bruin Senior Staff
Photos by JONATHAN HARNISH/Daily Bruin

Village faces loss of customers

Empty storefronts are taking over the streets of Westwood Village, and the businesses remaining in the neighborhood are losing customers as a result.

Stores like The Gap have increased the customer population in Westwood Village over the years, bringing consumers familiar with the popular brand of clothing to the area.

But as the chain and many other businesses leave the area, consumers that flocked to the stores and restaurants will find fewer reasons to visit Westwood.

“I think there’s no secret in retail that an anchored tenant like The Gap brings in consumers, and that spillovers bring in significant customers,” said Jay Handal, president of the West Los Angeles Chamber of Commerce, which promotes and aids businesses in the area.

Businesses face a grim future if stores continue to close down and customers lose interest in the Village.

Customers opt to go to the mall rather than Westwood because the stores in the Village do not complement each other, said Jeffrey Abell, owner of Sarah Leonard Fine Jewelers.

Consumers want a shopping area where they can look for similar products at different businesses, he said.

The major players in deciding which businesses make their way into Westwood are property managers.

In 1999, Madison Marquette Realty Services acquired the majority of properties in Westwood.

According to the retail real estate specialist’s case study on Westwood, the company “vowed to deliver a retail mix that would truly revitalize the area.”

Madison Marquette brought in businesses such as Ralphs, Victoria’s Secret and Corner Bakery Café among others before selling their properties to Topa Management Company.

“We felt that we had accomplished a lot of the goals we set out for,” said Tara Monnig, regional vice president of marketing for Madison Marquette.

When Topa Management took over the properties, they gained management of the spaces rented out by a large number of Westwood businesses, including The Gap.

“The Gap was given a significant rent increase that didn’t fit into their budget,” Handal said.

Rent for The Gap was high, but Topa Management was willing to discuss a lower rate, said Paul Gienger, president of Topa Management Company.

“(The Gap) elected not to even discuss it,” he said.

Calls over the last week to The Gap’s corporate offices were not returned.

Businesses have yet to make an offer for the empty space, but Gienger said they are looking for retail businesses similar to The Gap.

High rent for retail and restaurant spaces in Westwood extends beyond The Gap property.

Abell said his loyal clientele and the store’s strong foundation has kept his business from falling prey to high rent, while his peers in other Westwood businesses have closed down as a result of being unable to pay.

“At times, rent has been high, and we had to work hard to make it work for us,” Abell said of his own business.

Due to the priorities of the property managers, some business owners are skeptical toward the managers’ ability to bring in quality businesses.

Abell believes property managers do not think about the long term stability of businesses they lease spaces to, or what the businesses will do for the area as a whole.

Instead, they only consider immediate gains from leasing out the space as quickly as possible, he said.

Whatever the future of Westwood may be, the exit of The Gap may signify a decrease in the viability of Westwood as a shopping district.

“It’s a shame that (Westwood) had to lose a good tenant in an area that’s already retail challenged,” Handal said.

Some business owners see a long-term future in Westwood, but say they would enjoy the profits of a more successful shopping area.

“Maybe if there weren’t as many closures, business would increase,” said Hiroko Takenaka, operations manager of Green Tea Terrace.

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