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Quality
“Quality” as it relates to food hall projects
is not just about the architectural or design
quality, but the tenant roster as well. The
new crop of food halls being developed in
the U.S. include a wide variety of projects
ranging from reclamations of historic
industrial buildings to new, upscale space
in shopping centers or ground floor retail
in other types of projects (office, multifami-
ly or hospitality). But note that the design
of the most successful operations in the
market don’t just embrace cutting-edge
design flourishes like “industrial chic” or
exposed brick and timber construction;
their layouts tend to be “outside the box.”
The traditional food court—one built around
a common seating area surrounded by a
periphery of food vendors—has been
replaced with more interactive layouts that
allow consumers to experience the same
space in different ways depending on the
seating. Another primary design difference
is driven by the greater need for common
areas for social events. Today’s food hall is
built on the ancient model of a central
market being the focal point of community
involvement. Whether it is space for host-
ing entertainment or cultural events, or to
offer culinary classes, tasting events or
farmer’s markets, the addition of more
common area space helps to generate even
greater consumer resonance and loyalty to
such projects. The reality is that projects
that merely camouflage aging food courts
with just a name change and little attention
to design or layout upgrades are much less
likely to build the same levels of consumer
loyalty than are those that build truly
interactive spaces with quality tenants.
Here is where the issue of tenant rosters
is critical: New fast casual restaurant
concepts continue to dominate the general
marketplace in terms of expansion to meet
consumer preferences. This is also the
sweet spot for food hall tenancy, particular-
ly when it comes to startups. Although, we
have certainly seen no shortage of demand
from many better known national chains.
The cheaper costs of launching a food
hall-based location instead of a full restau-
rant in most urban areas means food halls
will continue to thrive as a real estate
option for test concepts, startups and even
food truck operators looking for their initial
bricks-and-mortar presence.
Location, Location, Location…
Location is always a central concern for any
retail real estate-related project. But for
food halls it is the primary concern. The
levels of foot traffic needed to sustain an
8,000 sf mini food hall with just 10 vendors
are significantly different than those need-
ed to sustain a larger project like a new
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Food Halls of America 2016