4 min read January 2024 — In an interview with Invest:, David Gott, general manager of Sawgrass Mills, which is owned by Simon Property Group, talked about the strategies the company utilizes to incorporate sustainability in their designs, South Florida’s thriving real estate market, and how Sawgrass Mills goes beyond the traditional offerings of a shopping center.
What have been some major highlights and milestones for Sawgrass Mills over the last year?
Over the past 12 months, while we are very excited that Sawgrass Mills had a record year in sales, tourism is still in the process of recovering fully from the effects of COVID-19. The mall underwent a multimillion-dollar renovation that started in 2019 and was completed in 2021-2022. With 350 stores and 2.3 million square feet, the renovation included a new floor, redone ceilings and common area lighting upgraded to LED. There are now two upgraded food courts, featuring modern amenities, such as high-top benches with charging outlets for computers. The mall also improved its Wi-Fi to provide a more welcoming experience for both locals and tourists.
How would you characterize the state of the commercial retail space in Broward County and what opportunities are you watching closely?
It’s no secret that South Florida’s real estate market has been thriving, though it may be showing signs of cooling off slightly. At the forefront of this success is Sawgrass Mills, a shopping destination that stands out for its unparalleled scale and critical mass. Notably, Sawgrass Mills is the largest outlet center in South Florida and even the entire Eastern seaboard. In fact, it rivals Woodbury Commons in New York, which is renowned for its size.
What makes Sawgrass Mills even more distinctive is its three distinct venues that cater to various shopping and entertainment preferences. The first is the traditional enclosed mall, where shoppers can explore an extensive range of retail stores, featuring popular brands, such as Nike Outlet and Tommy Hilfiger. Next, there is the Oasis, an enticing combination of retail, dining and entertainment options. The Oasis houses a Regal Cinema, Shake Shack, Yard House restaurant and a high-performing Cheesecake Factory. The proximity of The Oasis to the FLA Live Arena makes it a perfect place for visitors to unwind and enjoy the vibrant atmosphere during Panthers’ games and concerts.
The true crown jewel of Sawgrass Mills lies in its luxury section, aptly named The Colonnade Outlets. This upscale area of the property is home to a remarkable collection of 70+ luxury outlets, 60 of which are exclusive to South Florida. Notably, luxury brands Zimmerman and Christian Louboutin have recognized the appeal of The Colonnade and have chosen to open new boutiques here. Christian Louboutin’s outlet at The Colonnade is only the second of its kind in the entire organization, underlining the prestigious nature of this section.
Beyond Sawgrass Mills, Broward County itself offers a wealth of attractions. From its picturesque waterfront areas to the bustling cruise terminal at Port Everglades, visitors can experience a diverse range of activities. Nature enthusiasts will be delighted by the proximity to the actual Everglades, providing opportunities for hiking, walking, biking and other outdoor adventures.
What truly sets South Florida apart is its favorable climate, allowing residents and tourists alike to enjoy outdoor activities comfortably throughout the year. With its thriving real estate market, an array of shopping and entertainment options and access to numerous attractions, South Florida and Sawgrass Mills continue to entice visitors from near and far.
Has there been a shift in consumer preferences or demands over the past two years and if so, what are the main factors driving these changes?
Certainly, when you operate a massive bricks-and-mortar facility like Sawgrass Mills, it’s essential to be mindful of the online experience as well. What we’re witnessing in the industry is the merging of online and bricks-and-mortar; consumers want both to work together seamlessly. They appreciate the convenience of being able to shop online and return in person or vice versa. As such, we’re seeing brands that initially started as online-only investing in bricks-and-mortar locations. For instance, during a recent market tour, I noticed that a store which was previously online-only was finding success in their physical store as customers tended to make larger purchases in-person compared to online transactions.
How are you ensuring that sustainability is a cornerstone in your projects?
Simon Property Group has consistently received a Green Star Rating for its sustainability efforts. At Sawgrass Mills, we have focused on sustainability as well, converting interior lights to LED and implementing an energy management system to monitor and control air conditioning units more efficiently. Our parking lots are also predominantly LED-lit and we are installing GE smart grid technology to further optimize energy usage.
Furthermore, we take recycling seriously and have become one of the largest cardboard recyclers in South Florida, with 12 or 13 cardboard-only compactors on site. Our commitment to sustainability has been recognized and we are proud to be an IREM-certified sustainable property as well. The challenge lies in revamping a 1990-designed property when sustainability was not a significant consideration. However, we have been proactive in finding sustainable solutions, such as repurposing existing parking areas to build new structures and retail spaces rather than clearing additional land. We believe that these efforts are crucial in maintaining a balance between development and environmental responsibility, and we will continue to prioritize sustainability in our future initiatives.
What is your outlook for Sawgrass Mills specifically and the region more generally in the next two to three years?
Looking ahead in Broward County and South Florida, it’s likely that residential real estate prices will soon cap out, as we may already be witnessing. Apartment prices have stabilized after a couple of years of growth, which is positive news. We’ve recently experienced an inflationary period, and this can actually benefit outlet centers like Sawgrass Mills, as goods don’t appreciate in price as quickly.
For 2023 and 2024, tourism projections are looking optimistic, with the Broward County Convention and Visitors Bureau forecasting double-digit growth during this period. The return of tourism and the retention of local clientele, who rediscovered Sawgrass Mills during the pandemic, are expected to drive significant growth.
Furthermore, new tenant additions have been vital in attracting customers and we’re pleased to have opened stores for luxury brands like Fendi, Balenciaga and others. We’ve also seen expansions from established tenants like Gucci, Valentino, Salvatore Ferragamo, Versace and more, further enhancing the shopping experience. With several new tenants on the horizon and a positive outlook for the business environment in Florida and Broward County, we are incredibly optimistic about the future of Sawgrass Mills and the shopping mall industry in general.
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