The stores are part of an urban expansion plan to reach residents who live in metro areas that don’t feature the traditional retail space needed for big box locations. The typical Target floor-plan ranges from 120,000 to 180,000 square feet compared to CityTarget locations which will be under 100,000 square feet.

The first store is set to open in July in Westwood near UCLA and the second location will open in Downtown Los Angeles. A third store in the Beverly Center shopping center will open in March. Los Angeles and San Francisco will be the first markets with additional stores planned for Chicago, Portland and Seattle.

Target and other “big box” retailers are creating new expansions that aim to serve customers in urban spaces as opposed to suburbs which dominated expansion plans during the housing boom. Best Buy whose large footprint has become a burden with disappearing CD and DVD sales is opening small outlets and believe it or not Home Depot has two stores in Manhattan. Wal-Mart is also experimenting with the concept and is set to open a smaller store in Chinatown.

As housing shifts from building out to building up, it’s becoming clear that big box retailers will have to be ready to meet the needs of growing urban populations.

Source: Los Angeles Times
Image credit: Brigham Yen

The phase one Runway complex will take up around four city blocks and will feature fine dining, entertainment and just over 200 apartments. Phase two will feature additional housing (around 2600 residences), 50,000 square feet office space and an additional 200,000 square feet of retail space. Phase one should be completed within two years while the completion date of phase two is estimated to be around four years.

If you’d like to see photos of the proposed development, visiting the following gallery on the LA Times website.

Source: Los Angeles Times

The Westside is the perfect confluence of recreation, retail and dining that appeals to young entrepreneurs who live the work hard / play hard lifestyle and over the last two decades the area as a whole has improved significantly mainly through the influx of tech companies boosting the local economy. That’s not to say that traditional tenants like law firms weren’t driving growth but tech companies spur growth of complementary retailers and services that cater to their hectic, ever changing needs and priorities.

If your business is looking to lease in the Westside keep in mind that rent and parking will be at a premium and businesses whose employees bike or utilize mass transit will be better suited than companies with a higher level of traditional commuters. Also space in the Westside is some of the most expensive in Los Angeles and this is especially important for venture backed companies that may be facing ideal location vs most economical location debates.

Companies without the financials in place to take on a traditional lease may find that executive suites in the area might be a better choice until they can get funding or improve cash flow.

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