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.