Mar
5
Issaquah Highlands Retail Development
Written by: rebecca and filed Under Blog, Issaquah Highlands, Real Estate, Retail Development |
Port Blakely and OPUS held another “Retail Task Force” meeting tonight at Blakely Hall. After attending tonight’s meeting I learned a few things about commercial and retail real estate development � primarily that it is a long, slow and expensive process.
The new Issaquah Highlands Lifestyle Center will be located on the East side of Highlands Drive between what is now referred to as D Drive and E Street. You can use the small map above to help orient yourself as to where the development will occur. It also links to a much larger map for those who need a little larger image like me.
The concept for the Issaquah Highlands Lifestyle Center is a retail space that is described as having a mixed feel and concept of University Village, Ballard Ave and Madison Park. Port Blakely is trying to draw in several types of retailers. Their target is nationally known retailers such as Crate&Barrel, Pottery Barn, Barnes & Noble as well as local or boutique retailers like Market Time Meats and Deli, Ballard Blossom and Baby & Co. The three person leasing team does not currently have any leases signed, but said that several leases are �out�, meaning that the tenant and landlord are working thru acceptable terms and moving toward a signed contract. Based on what Port Blakely knows today and has in the pipeline, the current and best case scenario at this point for the Center to open was said to be Spring/Summer of �09. While the project is still a ways out Port Blakely is moving forward with the development of infrastructure and utilities this summer. If all goes according to plan, the construction of the actual buildings will begin in early 2008.
I was interested to learn that current plans for other development in the retail area of Issaquah Highlands includes, in addition to a grocery store (more on this in a minute), a movie theatre, medical offices, some commercial offices and a full-service health club. It was specifically stated by Judd Kirk with Port Blakely that he thought it highly unlikely that a hospital facility would go in that specific location. What’s the reasoning behind that? Port Blakely would not want to wait that long to develop the space and they are already speaking with two large companies that are considering developing office space in that location.
Another topic of discussion tonight was the never ending issue of building a grocery store. I was disappointed in the non-committal answers given by Port Blakely, but with all fairness, it does appear to be a complicated process for all involved. It comes down to this question: do we as a community want to continue to hold out for a “specialty” grocer such as Whole Foods, Central Market or Thriftway or do we want to move forward with a more “pedestrian” type of vendor such as a QFC, Safeway, Albertsons, etc? Judd Kirk has expressed that we could have a QFC, a Safeway or an Albertsons tomorrow if the community wanted that - but the feedback to date has been to hold out for a specialty grocer. Unless the community changes its mind, one thing is for sure, don�t hold your breath for a grocery store any time soon.
In my opinion most of the specialty/high end grocery stores that are being considered don�t really match up with the whole concept of Issaquah Highlands. We are supposed to be a diverse community with many properties having strict restrictions on them regarding income qualification. In fact a brand new ARCH project is going in just North of the existing retail space. I think this is a perfect location for income qualified housing as it puts it in a more realistic pedestrian commute to the fantastic Issaquah Highlands Park n Ride. But shouldn�t there be a reasonably priced grocery with in that same walking distance? I understand that a store like Whole Foods or Central Market offer products that you generally don�t find at Safeway or QFC, but with that said, I have seen some really nice Safeway’s and QFC’s that have a very nice selection and variety of products. That coupled with the benefit of a larger chain is that it also provides more products at different price points, thus meeting a wider range of budgets and tastes therefore truly being a store for the whole community. Just food for thought - no pun intended. 
Overall I think the concept of the retail project is exciting and really neat. I certainly hope that it does not lose its momentum. My biggest worry/disappointment was with what I felt were non-committal answers in regards to timing of the various projects. The majority of the audience seemed to concur as they are eager to see progress as well.
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Thanks for the Issaquah Highlands retail update.
Robbie thanks for your comment. I will continue to keep things up to date as new developments arise. In the meantime, please let me know if there is any other information I can track down for you.
Thanks Rebecca! We are moving back to the Issaquah Area this summer and found this blog to be very insightful. Did you hear of any big box retailers (i.e, Best Buy) coming close to signing leases?
Hi Dave. Glad you found the site to be informative.
To answer your question, the last meeting did reference big box retailers, but the subject was covered quickly and with not much detail. Originally the project did not include big box retailers as part of the overall concept, but the plans have since been modified to include some larger retail space (30,000+ sq ft) for the outlying buildings. They talked mostly about category killer big boxes such as Best Buy and Bed, Bath & Beyond.
I for one have not decided how I feel about this. I think my initial reaction is that a big box retailer is not necessary and have concerns that it could greatly impact the aesthetics of the project. For me it comes down to which big box retailers they would consider and how they blended the building in with the rest of the project. Do i want a Best Buy - not really. Would i mind a Bed, Bath and Beyond - not so much.
What do you think and what are your preferences?
As a member of the retail task force, I value the opinion of community members (or soon to be community members as the case may be) as to the approval/disapproval of this revised concept. For those in favor of it, I would be interested to know what retailers you would like to see. I will continue to keep current on this topic and send out updates as new information becomes available. In the meantime, welcome back neighbor!
Whoa! Having a Whole Foods in the Highlands would be such an opportune location! So many people would go there. The only main difference between Whole Foods and your average grocery store (QFC, Albertson’s, or Safeway) is that it emphasizes on health. And yes, while it can be expensive, its worth it. (QFC isnt that cheep either). Plus, there are already so many of these types of stores around town. Being that the Highlands is “truly a pedestrian neighborhood,” health seems to fit right in, and a store like Whole Foods would be the perfect match. As a society, we are realizing the importance of making healthy eating decisions and that’s why stores like Whole Foods are doing so well (just look at the one in Bellevue–the parking lot’s always full)!
Amanda - I agree that Whole Foods is a great market. In fact, I shop their too. I love their focus on health, sustainability and ecology. I would love it if Whole Foods or a similar market is brought to the Highlands.
That said, my concern is over the prices that Whole Foods has. If our community is one to embrace various income levels, it seems we might want to consider the needs of all community members when selecting a grocer.
If we truly consider the needs of all community members and still agree that a Whole Foods type of market alone would serve the community well, then that would be a great scenario. I just want to make sure the needs of everyone are considered before making a final determination.
Okay, about the Whole Foods issue…
I see your point about supporting economic diversity. However, when you can be “income qualified” and still make over $80,000 a year in some cases, I’d hardly call that too poor to shop at Whole Foods.
Point being, anyone that lives in the highlands has sought out that community because it stands out from the rest. Overall, the shopping atmosphere provided at any Whole Foods I’ve been to makes the slightly higher prices well worth it; you can feel good about what you’re purchasing. I think many will agree with me in that paying a little extra for to live in a quality, environmentally responsible home surrounded by green space seems to suggest that other aspects of the Highlands lifestyle should match accordingly.
I agree that a grocer such as Whole Foods would be the way to go. As environmentally conscious consumers with relatively low incomes, we do nearly all of our grocery shopping at Whole Foods in Redmond.
As such, I strongly disagree with the view that the Highlands needs a more affordable grocery store to cater to those residents in the income-qualified ARCH units. We happen to qualify for all but the very least expensive of these units, yet we still (very comfortably) shop at Whole Foods every week with plenty of money to spare.
We value our health and the environment–two of the many reasons why we chose to live in the Highlands. If we can afford to shop at Whole Foods every week with our modest incomes, I believe that the vast majority of other residents in the Highlands can as well.
If it simply comes down to a matter of preference, then there is a Safeway, a QFC, and an Albertson’s all within 5-10 minutes of the Highlands already.
Mike and Ashley -
Thank you both for your comments. Again - I am a supporter of Whole Foods as well. I was simply suggesting that as a community we listen to the needs and wants of all our community members at all income levels.
Mike - you mentioned that while having a modest income (per your comment) you and your family still make a point to shop at Whole Foods. That being said, then I think you bring a strong voice to the table that Whole Foods is not too expensive and is a good fit for our community.
Thanks again to both of you for your comments.
What is it now; twelve +/- years since Port Blakely has been dangling the carrot of shopping in front of prospective home buyers? At this point Id be amazed if they did anything this decade. I have to say that a number of years ago, before Microsoft pulled out, Issaquah Highlands was touted as an upscale neighborhood, with shopping akin to University Village. Many of us that bought back then, much to our dismay, were sold that bill of goods. The number of income qualified housing was much smaller then and increased only after Port Blakely had to scramble to compensate for the Microsoft exodus, adding hundreds more units of that type housing. I think thats where the new concept for the Highlands really comes from. Theres a place for Arch in the community but it is not reflective of the community as a whole. So now to characterize the neighborhood, with a median income of around $120K, as this mecca for income diversity, that cant support Whole Foods, is a misrepresentation of what was advertised and whats reality. Not to say that it was ever purported to be totally exclusive but, the distinction was that it wasnt going to be another stripmallesque shopping center with a Safeway, Bed Bath Beyond, etc. Which seems to be where its heading. Not what many of the million dollar plus homeowners bargained for. Besides, its my understanding that Wholefoods does want to come to Issaquah, but not to the Highlands so it may be a moot point anyway. As far as the hospital goesSwedish won approval and last I heard was still planning on moving forward.
[…] One of the great things about living in the Issaquah Highlands is the proximity to mass transit. Let’s face it, the Puget Sound Region is not well known for it’s extensive network mass transit. Fortunately for the residents of the Highlands, a 1000 parking stall Park and Ride is located right on the edge of what will become the retail village (or Lifestyle Center). […]
Drake,
I agree that Issaquah Highlands are a far cry for a mecca of income diversity but I do think is is far more diverse than say Klahanie or Talus.
As it related to Rebecca’s post though, I don’t think she ever claimed that is was an low income mecca or that the IH could not support a Whole Foods. She is just adding a dissenting view point to the specialty grocer debate that continues to occur.
You comment that IH is supposed to be “with shopping akin to University Village.” Correct me if I am wrong, but I could of sworn University Village had a QFC, no?
how can i stay informed about next meetings regarding retail ?
thanks, jim
Hi Jim,
Thanks for your comment. One way to stay informed is by attending the Community Development Committee meetings. These meetings are open to everyone and are held the 4th Wednesday of the month at Blakely Hall from 7 to 8:30 in the evening. These meetings do cover more than just the Retail Development, but that topic is covered too. For more info on the community, check out http://www.ihwebsite.com.
Has anyone heard if there will be a REI in the retail village? I think that Issaquah Highlands would be a perfect location. We are surrounded by lots of trails that are excellent for hiking and biking. We are also very close to the mountains which is great for camping, skiing & snowboarding. We are super close to lake sammamish which is nice for kayaking & canoeing. I could not think of a better fit.
I also agree that Whole Foods would be the best grocery store. I don’t think that people in the Issaquah Highlands want a grocery store like Safeway that is fill with nothing but frozen food, junk food & tabloid magazines. If people want cheap food they can drive to Fred Meyer or Albertsons which are just down the hill.
No REI for the Issaquah Highlands. REI is putting a location next to the Safeway in Gilman Village. It is going to be a much smaller store than you typically see. it will be just a retail outlet; no climbing wall. I am saddened by this as I would have loved to see an REI up here.
Wholefoods is great, but lets get our grocery story. QFC is fine!
While I would prefer to see a Whole Food’s up here, the reality is that that isn’t going to happen. Whole Food’s has said as much themselves. There are still other alternatives such as Central Market that we can hold out for, but the down side is the rest of the retail area won’t get built out until we get a grocer committed to the location. That tends to make me lean more towards moving on something sooner, even if it is not the vendor we all had hoped for.
Billy: There is currently a QFC less than three miles (5-6 minutes) from the Highlands already. Building a grocery store for the sake of having a grocery store when we are surrounded by them seems to be a bit of a waste. I’m of the opinion that we should all just be patient on this one. It’s not something that we desperately need right away. We (in our household) get along just fine right now, even with the drive to the Redmond Whole Foods for all of our groceries. I would personally like to hold out for something that will help our community stand out from the rest.
Mike, I have to agree with Jeremy and Billy. While I would love to hold out for Whole Foods, that doesn’t look like it is going to happen and based on the information available at the last development meeting, I don’t want the rest of the retail development project held up because of the grocery store. I am currently holding out hope for Central Market. With that said, thanks for your comments and participation in the conversation (same to you Billy and Jeremy).
Yes, that’s true. At the end of the day, it would be nice to get things going. Central Market would be absolutely fantastic as well–I just think we need something different. It would be wonderful if we could shop at a store because we enjoy it, not only because it is close.
Do we know if Central Market (or Larry’s for that matter) has expressed any interest in moving to the area?
Thanks to everyone for your input.
All comments on this post have now been restored.
Won’t the projected build out of IH support 2 grocery stores based on its population? Get anything now and get Central Market later! OR another PCC or Metropolitan Market
Please work at getting stores more like U village, ie Crate and Barrel, Pottery Barn, Williams Sonoma. The area can support it
Betsy,
From the meetings I have attended, the area should have a feel like U Village with similar vendors.
As for having enough residents to support two grocery stores - not sure about that but keep your eyes and ears peeled as there will hopefully be an announcement soon regarding the grocery store.
Given that Best Buy is slated to be going into the Highlands and REI, a distinctive “destination store” that would be a great addition to a “lifestyle center”, is going in Issaquah proper, speaks to the realities of Issaquah Highlands being able to attract these types of stores. Best Buy is not a lifestyle store, which is why you typically find it near big box stores like Home Depot. If this is considered an anchor store that changes the complexion of what type of other stores the Highlands can attract.
If Central Market does come into the Highlands, as is currently being discussed, that would be a good compromise store since it, like Metropolitan Market, offers specialty fare and mass market groceries – yes, like the QFC in the U Village. We can at least take comfort in the reality, that the proposed Whole Foods in Issaquah is just as convenient as the Highlands. Personal inquiries into several of the UVillage store brands, Crate & Barrel, Pottery Barn, Barnes & Noble, etc. indicated that they have no immediate plans to develop in the Highlands. Coming from retail, I know that the turnaround on finding suitable locations, negotiations and build out typically takes years. If there’s no interest or commitment now you’re maybe looking at the next decade.
Drake,
Why the skepticism? Call me naive, but the rest of the community has come together nicely thus far - why should the retail space be any different? I believe that the plans for the shopping center will come together. When attending the community development committee meetings, the individuals in charge of orchestrating the leases stated that retailers like Crate and Barrel, Pottery Barn, Barnes & Noble, etc., have indicated strong interest in coming to the Highlands. What are your sources that tell you otherwise? Several senior store managers at Central Market are still unaware of Central Markets desire to come to the Issaquah Highlands, let alone the commitment that has been made.
Regarding Best Buy, where did you hear that they are slated to come here? Best Buy hasn’t yet been mentioned as a potential tenant at any of the community development committee meetings that I or my husband have attended. The only time I have ever heard any mention of Best Buy is when OPUS described the one retail space that was being enlarged. They used Best Buy and Bed, Bath and Beyond as examples of the type of retailers that could fit that new space.
All that said - thank you for contributing to the discussion.
Just put a QFC or Safeway in. Who really needs “WholePaycheck” (Wholefoods) when you have an empty PCC down the road.
As I’ve emphasized before, we shop at Whole foods every week for our groceries, and it’s not that much more expensive than your average grocery store. In fact, it’s CHEAPER if you’re buying -quality- food. If you live off of Campbell’s and Kraft anyway then perhaps it’s not for you, but Whole Foods does have a “generic” line of foods that is very reasonably priced.
I still haven’t heard anything official, but rumor still has it that the grocery will be Central Market. I promise to provide a more detailed update as soon as more information becomes available.
They have now put renderings and site plans up on the http://www.thehighstreets.com website. They look pretty good, but there are some interesting things to notice:
-the only retail space to have a name is Central Market so that must be the grocery store they have chosen
-there is a large (~30,000 sqft) electronics store, people were mentioning best buy, which i think will be great
-there is a large (~33,000 sqft) apparel store which is too small for a department store and too large for a medium size store like H&M or Zara, which would be great to have, it could possibly be a Kohl’s given there current rate of expansion in our area, any other ideas?
-they have a 16 sceen cinema on the plan, i would love to have this be owned by the same people as lincoln square cinemas, however maybe there is a possibility of it being a Cinetopia, a theater out of Vancouver, WA that just became the first tenant of the Everett riverfront redeveloment, check out there website its a pretty cool concept
-lastly i don’t see anything slated to become a hardware store, i think that having a small hardware store, like the Ace in the Sammamish Highlands, would be great, but then again Home Depot is just down the hill, and of course I would definitely like to see Restoration Hardware
In an earlier post, I mistook Central Market for the one based in Texas (www.centralmarket.com), which is an awesome store. Was a bit disappointed that the one based in WA is a pretty typical chain. Fortunately, for those of us that care about what we put in our bodies, PCC is still right down the hill.
We Want A Whole Foods…quit holding out and make a deal with them. Time to get the ball rolling. Bring on Whole Foods! YEA!!!!!
I would like to see a continuation of the topic
I am working on an update real soon. There is a lot to share and I want to make sure I cover it all. Stay tuned.
Rebecca
So what is the latest update?
Keith,
I should have something for you on the 9th or 10th.
Rebecca,
You had mentioned you might have some info on the retail by the 9th or 10th. Any luck?
I am posting updates as quickly as I have the time. Business is very busy for me right now and that takes priority. Don’t worry though. The updates will come - but probably won’t be as exciting as you are hoping for.
Rebecca,
I guess this is one example of why I’m skeptical. Reliable updates are few and far between.
You’re right the community has come together “nicely”, particularly if you are the developer, but not as advertised. How many years have you been in this community? This has been in process for over ten years. Pardon me, I’m not being pessimistic, but after a decade I am skeptical. Even the homeowner fees that were supposed to go down as more homes were built have gone up. I quite frankly don’t see what our money is getting us – oh, of course I loved the announcement a while back that the administration offices were getting Herman Miller chairs; I’d venture a guess that most people that live in the Highlands don’t work in offices with Herman Miller chairs. (Okay, I admit we have them in my offices and at home… but, I’m sure that’s not the norm.)
In regards to potential retailers, what do you expect the developers to say but they “have indicated strong interest in coming to the Highlands”. Has there been any commitment? Where are the trumpeted announcements? Other than the plan with Central Market noted on it what’s been announced? My standpoint is if the outlook is so fabulous, why is it like pulling teeth to get any concrete information? I understand being in stealth mode but this takes it to a new level.
As far as my sources, they seem more reliable than yours; as you seemed to confirm in your November 3rd post about Central Market, and Dave reiterated in his review of the posted plans.
Did your sources convey that PB almost lost the hospital? Luckily, no thanks to PB, the deal is moving forward. That would have definitely put crimp in things since some potential retailers are waiting to see if the hospital actually goes in.
Thanks for your posts. This is a good venue. I’m looking forward to your update to tell me something I don’t already know, and maybe, hopefully, prove me wrong.
drake,
Do you understand the complexities of building a retail area like Port Blakely is building, not to mention opening it all in one fell swoop? I know for a fact that a few retailers are going to be relocating to the highlands from other locales that are in close proximity. If Port Blakely were to release those names, their current landlords might sweeten the pot to the point Port Blakely couldn’t compete. If that happens we lose several tenants in one shot.
As for what kind of company a store like best buy would draw, well I don’t think you can draw conclusions. get out and about the country and you will find places like Santana Row in Santa Clara where stores like Best Buy and Crate and Barrel are flanked by boutiques like Gucci, Cole Hann and Bang & Olufsen. I would say that’s the kind of mix we want here, no?
What are your sources and why are they better? Other than the criticism of the progress and Rebecca’s reporting of such, I don’t see you providing any new information. Who is your source that told you Port Blakely almost lost the hospital and why did they almost lose it. From my understanding, Port Blakely set that land aside for a hospital knowing there was demand and let the hospitals fight it out with each other, which in my opinion was the right thing to do.
I’m not trying to be confrontational here, but having been through this process before, I know it isn’t as easy as signing a deal and announcing it then rinse and repeat, which is what , if I am reading between the lines correctly, I think you are getting at.
Jeremy,
Yes, I do understand the complexities of business development, including properties and retail. I know all about stealth mode in development deals. And yes, I realize that there are considerations for not announcing things until they are set in stone. I’m also aware there that there are some interested parties, but not necessarily what everyone may be anticipating.
You’re right about occasionally finding stores like Best Buy in the company of higher-end retailers. But last time I checked this isn’t California. Washington is different on many levels as to what the market will support and where. Making business trips to places like the Stanford Mall, South Coast Plaza, Fashion Island, Broadway Plaza, Scottsdale Fashion Square, Ala Moana, Shops at Wailea, even the UVillage, I don’t recall seeing a Best Buy. And to concede your nod to Santana Row, if memory serves even Pacific Place in Seattle couldn’t land Gucci. Bellevue’s likely higher on the list for high end retail.
I double checked my earlier response to confirm, I never said my sources were better. But, they are reliable. I also never criticized Rebecca’s reporting. I actually gave her a compliment on how great the blog is. What I was criticizing was how few and far between the updates are from PB.
As far as the hospital, it wasn’t a matter of having the hospitals fight it out; I agree competition is important. It was rather PB making the process after the award so onerous and so demanding that we’re lucky the hospital didn’t take door number 2.
This blog is a forum for exchanging information and ideas. You are welcome to your opinion as am I. With that said, don’t be deluded into thinking that other contributors don’t exist that have “been through this process before” nor that others have applicable insight. For some reason I must strike a chord, or a nerve, with you since you like replying to my posts.
thanks for the response drake. to be honest, you didnt really strike a chord in me, rather i like to disagree for the sake of disagreeing; especially when it comes to the topic of someone trying to break sterotype and do something different.
i agree with a lot of what you said, making the process for sweedish difficult, washington isnt california and this blog being a forum for discussion and sometimes disagreement.
except for the later, i can see why things have played out the way the have. pb got burned on the microsoft deal and perhaps are erring too much on the side of caution with process.
washington is a far cry from california (i grew up in so cal steps away from fashion island) but i believe washington can change. san jose used to be a nothing town. now it is getting hip. suburbs outside of sacramento and orange county, same thing. heck, i even found a suburb in detroit which had just been redone and it was pretty cool. i mean come on….detroit? who would have thought.
that said, i appreciate your readership and your comments. these discussions keep it interesting and real.
cheers,
j
Just because you have ARCH housing, or housing with income restrictions, doesn’t mean you have to build a QFC or Safeway. This is the Plateau…they should put in a swanky market which reflects the Issaquah Highlands residents income….
Central Market announced they will be the grocery store in the high streets.