William Hutchinson, CEO, Dunhill Partners
In an interview with Invest:, William Hutchinson, CEO of Dunhill Partners, discussed the real estate company’s focus on the Dallas-Fort Worth area, its work to beautify the properties it acquires for community engagement, and with only about 20% of sales being online, why there is an enduring appeal of physical retail spaces.
What makes Dallas-Fort Worth and the North Texas region an ideal location for Dunhill Partners to focus its efforts?
Dallas is experiencing a booming economy, with significant wealth concentrated in the region. In commercial real estate, it’s critical to operate where wealth exists because where there’s money, tenants follow. Retailers, for example, seek locations with high disposable income and heavy foot traffic, both of which the Dallas-Fort Worth area offers in abundance. In fact, my son and I often spot license plates from other states as we drive around, which is a testament to how many people are relocating here due to the strong local economy. Lower regulations, lower taxes, and a higher quality of life are all contributing to this influx.
Texas as a whole is thriving thanks to its business-friendly environment. Governor Greg Abbott has done an excellent job supporting policies that prioritize small government and low taxes. The absence of a state income tax means people have more disposable income, which they spend at shopping centers on retail goods, dining, and personal services. A quick drive through the city reveals full shopping centers and thriving businesses. This is exactly why our focus remains on this region.
As growth continues, so does development, driving more money into the local economy. A rising tide lifts all boats, and that’s precisely what we’re witnessing here in Texas.
What specific trends have emerged in the retail segment?
We are witnessing a shift in the retail landscape. Some established brands have scaled down or, unfortunately, filed for bankruptcy. For instance, Bed Bath & Beyond, where I shopped throughout my adult life, is no longer around. Similarly, retailers like Conn’s, Big Lots, and Tuesday Morning have also filed for bankruptcy. This is the natural cycle of retail — brands that fail to adapt to changing times eventually fade away.
However, in Texas, new brands or new uses quickly fill those spaces in well-located shopping centers. A growing trend is the replacement of traditional retail with service-oriented businesses, such as gyms or family entertainment centers like Urban Air, a popular indoor bounce house facility. Large retailers that have closed are often replaced by fitness centers like LA Fitness or Crunch Fitness. So, while you may lose a tenant, there are always others ready to take their place.
We are also seeing a significant influx of grocery stores in the Dallas-Fort Worth area. We likely have more grocery stores per capita than any other state. Everyone, from Central Market to Whole Foods and Sprouts, wants to sell groceries here. The emphasis on health is clear, with consumers willing to spend more on organic and fresh produce. This trend aligns perfectly with Dallas, where people have the disposable income to prioritize their health. At Dunhill Partners, we invest in quality shopping centers in prime locations, whether or not they feature a grocery store, knowing the demand is always strong.
How is technology impacting your operations, and how are you incorporating innovation into your processes to enhance efficiency and client satisfaction?
Technology is a remarkable force, evolving at a rapid pace and transforming our industry every day — hopefully for the better, though I’m not yet 100% certain. Nevertheless, we’ve embraced it in our operations. For example, we now use AI to draft investor letters. AI can produce a more polished investor letter than I ever could. You input key points, and within seconds, it generates a well-crafted letter. It’s impressive, and that’s the power of modern technology.
When it comes to shopping centers, however, they remain firmly rooted in bricks and mortar. Two decades ago, there were predictions that online shopping would spell the end of shopping centers. Many believed that people would do all their shopping from their computers. I always said that was nonsense. We are social creatures who want to get out, walk the aisles, dress up, and engage with others. You can’t replicate that experience shopping on Amazon from your bedroom. People crave sunlight, they want to be seen, and they want to see others. So no, technology hasn’t replaced shopping centers. In fact, today, online sales account for only about 20% of all retail shopping, meaning the majority still happens in physical stores. Savvy retailers, like Restoration Hardware, have demonstrated the right balance between “clicks and bricks”.
Their online co-exists and compliments their stores. People first shop with their eyes (online) but they can then experience the time in the store. If you’re solely online you miss a critical ingredient in the consumer’s shopping experience. Walmart had seen eroding sales due to the Amazon effect, but they’ve successfully launched a respectable and rapidly growing online presence that has countered this trend.
How do you foster a culture of collaboration and efficiency among your team members?
At Dunhill Partners, we pride ourselves on being like one big family. Our team genuinely cares about one another, and we value the diverse backgrounds and unique personalities each person brings to the company. We make it a priority to enjoy each other’s company. Whether it’s celebrating birthdays, hosting Halloween and Christmas parties, or organizing other events, we spend time together outside of work, which strengthens our bonds. Walk through our offices, and you’ll hear plenty of laughter — people sharing jokes, talking about their weekends, or discussing their latest dining experiences. It creates a vibrant and positive atmosphere.
Work doesn’t have to be serious all the time. It’s important to enjoy the time we spend with one another because, in reality, we spend more hours with our colleagues than we do with our families. After a long day in the office from 9 to 6, we go home, eat dinner, and head to bed. That’s why fostering fun and positive relationships in the workplace is so essential to our culture.
What role does community engagement play in Dunhill Partners’ development strategy?
At Dunhill Partners, since we focus on syndicating existing properties, we are typically not involved in the initial community engagement — that is the developer’s responsibility. Our objective is to enhance the properties we acquire, making them better than they were when we purchased them. A great example is the Design District in Dallas. Mike Ablon, the previous owner, did an excellent job putting the area on the map, but when we took over, we elevated it further. We brought in more tenants, more businesses, and revitalized the nightlife.
Before we owned it, the Design District was a quiet, largely undiscovered area. Aside from designers visiting showrooms, there wasn’t much activity. We transformed that. Now, when people think about where to dine, bowl, or stay at a hotel, the Design District is top of mind. We also added statues and public art throughout the area. Although we sold the property two years ago, the art remains, and I’m extremely proud of that contribution.
Across all our properties, we aim to enhance the spaces — whether through landscaping, fountains, or public art. These touches, while sometimes subtle, significantly improve the overall experience for everyone.
What are Dunhill Partners’ top priorities for the next two to three years?
At Dunhill Partners, our top priorities over the next three years are clear and focused on sustainable growth, enhancing value, and fostering community engagement. We will continue to strategically expand our portfolio by acquiring high-quality properties in key markets. Our focus will be on acquiring assets, at the right price, in rapidly growing regions, especially in Texas and the surrounding region where population growth and economic activity are robust.
We’re also committed to maximizing the value of our existing properties. By enhancing tenant mix, improving property aesthetics, will to elevate the customer experience and drive increased foot traffic to our centers. Investments in beautification, public art, and sustainability initiatives will ensure our properties remain vibrant and relevant for years to come. One of the things I enjoy most about real estate is to create spaces that not only meet consumer needs but also foster a sense of connection while deepening the roots in the communities and contribute to the long-term growth and well-being of the neighborhood.
Our strategy is simple: grow smart, enhance value, and build community. With these priorities in place, Dunhill Partners will continue to be a leader in commercial real estate investment.
