Developer DJM navigated the pandemic with its mixed-use projects, and chief creative officer Chad Cress believes the secret to that success has been thinking of its centers as community hubs. “We started to think of our properties as places people gather as opposed to just shop, and since then, this strategy has increased sales, visitors, visitor frequency and average dwell time,” said Cress. Commerce + Communities Today contributing editor Ben Johnson spoke further with Cress.

Let’s get down to business. What is the impact of community focus on financial returns?

It starts with the tenants and merchandising. Brands are much more selective on where they want to be and who they associate with. Brands are attracted to places that speak to their authenticity and ability to drive traffic and engagement. Creating authentic community through considered design and consistent programming builds trust with both the brands and the consumers in the market. This ultimately drives foot traffic, repeat visits and higher sales. If we can get those pieces right, then we know the financial returns will follow. Nothing is a given anymore with retail. It takes hands-on operators that know how to engage with culture and create a product that is authentic at every touch point.

What are specific ways property owners can connect to their communities?

Ways to create a community hub include curating a tenant balance anchored by local businesses that speak to the DNA of the neighborhood and [by] food-and-beverage; hosting community-driven events like farmers markets, activations and entertainment; and creating property design that inspires and encourages community gathering, meeting places and engagement, with a focus on outdoor public spaces.

What do you provide that residents can’t find elsewhere?

DJM leverages local customs, residents and businesses to provide experiences and a unique combination of tenants that customers can’t find elsewhere. Just recently, Ovation Hollywood, previously known as Hollywood & Highland, hosted a very successful Oktoberfest celebration, bringing Hollywood residents together at a property that typically serves many tourists. We also focus on a constant schedule of events for the community so our properties become something like a town square or neighborhood gathering place.

How do you embrace and leverage local customs?

Each city or neighborhood is unique and requires authentic programming that speaks to that DNA. Examples of this custom approach would be things like historic surf art galleries in Huntington Beach, boat shows or maker markets in Newport Beach, red carpets or high-octane concerts in Hollywood, or car shows in Long Beach. Each calendar of events speaks to the uniqueness of each city and what authentic culture looks like for each property.

You often speak of ‘curating’ centers. What do you mean?

It all starts with creating the right brand DNA that flows into everything from architecture, environmental design, community events and merchandising mix. Between merchandising that speaks to the authenticity of the community, a built environment that focuses on placemaking that reflects the DNA of the neighborhood, and relevant programming, we curate every touch point of the customer experience.

How much does tenant mix impact the community connection and popularity of the property?

We strive to provide a mix of local and national tenants, along with food-and-beverage, to create a unique and elevated experience for local residents at each property. The right tenant mix then creates an atmosphere that encourages longer and more frequent visits to DJM properties. Choosing the right tenants for each property is also important to make sure we are meeting community needs. For example, DJM transformed its Village Del Amo property in Torrance, California, thanks to the addition of beloved Los Angeles-based Korean supermarket Hannam Chain. Since the supermarket’s arrival to the property in 2022, traffic at Village Del Amo has increased by 145% year over year. At Ovation Hollywood, our focus is adding food-and-beverage that speaks to “best of L.A.” and creates more local draws, along with representing Hollywood to the world through our tourists. At Lido Marina Village, our focus is compiling the best fashion brands that all complement each other and enhance the waterfront dining experience with our restaurants.

How does design itself inspire and encourage community gathering?

One way we do this is by focusing on creating beautiful public domains that encourage community. Every element, whether it is the architecture, landscaping, furniture or music goes back to the brand DNA of the project and what reflects the market we are in. One example of this is how DJM transformed Lido Marina Village in Newport Beach into an open-air, waterfront and pedestrian-friendly property. The village and marina [were] turned into a boutique retail, restaurant and creative office space. A 47-slip marina with docks and decks was a unique opportunity for DJM to attract upscale stores and restaurants to occupy desirable waterside space and provide a world-class dock-and-dine experience. The space now boasts open, outdoor seating and gathering places for shopper and community members. In this outdoor space, the property often hosts events to inspire and encourage the community to gather. Another example is how we transformed Ovation Hollywood from an outdated and tired shopping center into a space that is vibrant with greenery, landscaping and public space. We have transformed the architecture, branding and design to reflect where Hollywood is today and the type of place that locals can be proud of. We’ve created a place [where] locals and tourists alike can experience Hollywood with a robust calendar of events that serve the community.

What role do events play in the success of a center?

Events are another great way to gather our community. DJM hosts more than 2,000 events across all of our facilities to bring people together, including movie nights, holiday celebrations, community-building events and more. These events encourage the community to gather together at our centers, creating a place for people to meet, shop, eat and enjoy one another. We are event producers as much as we are real estate owners/operators! The role of a landlord in today’s retail environment is not just to lease space, but to take an active role in marketing that takes the omnichannel nature of today’s retail in mind. This is accomplished by focusing on both in-person events and digital marketing that drives both digital and physical foot traffic for our tenants.

What are today’s consumers expecting when they frequent retail?

Today, consumers are expecting a holistic retail experience. The pandemic had an enormous impact on them and, as a result, on physical retail. It accelerated important trends in the industry, such as the conversion to omnichannel and moving away from enclosed malls. Retailers have to provide an experience that people can’t get online and [have to] think about customer experience first. While consumers have increasingly adopted online shopping habits, we’ve also learned that the need for physical experiences are more important than ever, and [we] continue to see the desire for in-person community building. People are pickier than ever on where they spend their time, and if it is in a retail center, it has to feel special and enhance their lives.