VENICE COMES TO VEGAS

The Grand Canal Shoppes

E.S.P. Scoop How Dan Blatteis and Robert Schnur scouted the world’s best shops and most exclusive lifestyle attractions to design an entertainment oasis in the desert

 

by Keith Alan Deutsch and Judi Biederman

 

What could make a splash in a town where “big spenders” are common and “over-the-top” glamour is the order of every day? If the town is in the middle of the desert, as Las Vegas is, the splash comes in the form of a most luxurious retail and entertainment complex situated along a man-made Venetian canal. And the glamour is provided by an extravagant array of high-profile, international fashion boutiques, a menu of entertainment and lifestyle venues unique to this project in the United States, and an abundance of national (and European) brand-name retailers that is unprecedented in Las Vegas, the United States, and perhaps the world.

 

The Grand Canal Shoppes (about $425 million to develop) is the entertainment retail center of The Venetian resort/hotel/casino.  E.S.P. has confirmed that the first phase ($1.5 billion to develop) of this highly publicized Las Vegas entertainment retail project will open May 14, 1999 on the grounds of the old Sands Hotel and Casino.  Las Vegas Sands Inc. (LVSI), headed up by Sheldon G. Adelson, chairman, developed the complex, which will cost $2.5 billion after phase two (scheduled to begin the fourth quarter of 1999) is completed.  Adelson’s vision was to recreate the splendors of Venice, Italy-- complete with a working canal and gondoliers. When it came time to plan the shopping and activities to be offered along the canal, Adelson brought in Dan Blatteis and Robert Schnur of Blatteis Realty Company, Inc. as retail consultants and exclusive leasing agents. 

 

 

The Grand Canal under construction beneath an
azure frescoed sky that would have done The Most
Serene Republic proud

 

E.S.P. was pleased that Mr. Blatteis and Mr. Schnur took time from their busy schedules to talk to us over the phone from Las Vegas.  We believe we got some interesting and personal insights into the design and planning of retail entertainment environments that our readers just won’t find anywhere else.  We also had the full cooperation of The Venetian to bring exclusive information to this story.

 

Of the 66 retail units, which lease at an average of $100 psf

and require common area maintenance of $25 psf, only three
or four locations were still available at press time

 

The first thing that the two enthusiastic leasing agents/retail consultants told us, both speaking at once, was that “Sheldon (Adelson) brought us in at a very early stage of the Grand Canal concept, two and a half years before construction, to help create a unique strategy for this extraordinary entertainment retail project.  He wanted The Grand Canal Shoppes to be everything to everybody--not one-directional.”

 

“Balance.” We think it was Mr. Blatteis who raised the theme first.  “Be sure to tell your readers that we went after balance.  We wanted a unique and fresh approach to an entertainment and lifestyle shopping experience.  There are many different types of shoppers, and we wanted to appeal to everybody.”

 

“Our goal was to maximize the retail environment,” Mr. Schnur told us.  “We are the exclusive tenant reps for many of the better and the unique retailers, like Kenneth Cole and The CheeseCake Factory, and many others all over the country.  We travel all over the world for our clients.  So we have a unique advantage.  We get to see all the leasing plans.   And we’ve learned a lot about the psychology of shopping, and shoppers, and how to maximize the retail environment.”

 

“The first thing we saw immediately in the initial plans for The Grand Canal Shoppes was that the traffic flow was wrong,” said...well, by this time we could no longer tell who was speaking.  “It is a pedestrian concept and the walk was originally all on one side of the canal. Single loaded.  And there were cul de sacs.  We had to get rid of all the dead ends.  We had to develop desirable sight lines.  All the great streets have two sides lined with interesting shops and activities to entice the consumer.  Think about it.  Fifth Avenue, the Champs d’Elysee, Rodeo Drive.  They all have a double load.  There are two sides to walk and see all the shops separated by a large street. At first you walk down one side.  Then you can walk up the other.  This is very important.  You must entice the consumer to see the whole project.  In traditional urban environments you take your own path.  It doesn’t get boring.

 

“ We’ve learned a lot about the psychology of shopping,

and shoppers, and how to maximize the retail environment”

 

“Now there are certain rules we’ve learned about shoppers and browsing.  People tend to look right.  Maybe its because most people are right-handed.  Left turns are no good.  They don’t entice.  So we worked with the architects to change the traffic flow to make the walking experience as inviting as possible.  You won’t get bored walking the Grand Canal Shoppes.  And we do think the tenant line-up is balanced.  That there is something for everybody.”

 

 

 

Robert Schnur and Dan Blatteis with model of this complex project

 

It seemed to the E.S.P. staff that there might not be enough for children.  But we were wrong.  “I’m glad you mentioned that,” said  Schnur, partner in the Los Angeles office of Blatteis and chief leasing agent for The Grand Canal Shoppes.  “We have a wonderful toy store, Toy’s International.  I travel more than I like.  And I always come home with something for my daughter.  Toys or clothing.  We have representative tenants for children.  We have to appeal to all different kinds of shoppers.  Las Vegas with its convention centers gets eight million visitors a year.  And with the expansion in the convention centers we expect ten to twelve million visitors a year.  We have to appeal to children and families, too.  In fact, we are opening a very interesting concept, a children’s mini-mall called Kids Karnivale.  But
we also made sure we had the most unique, most prestigious retailers, entertainment experiences, and dining establishments from around the world.  Really upscale lifestyle tenants, too.  The secret is balance.”

 

True to Mr. Blatteis and Mr. Schnur’s original design, The Grand Canal Shoppes now includes  retailers from some of the toniest shopping districts worldwide, including several from Venice, Italy. The international line-up of retailers currently includes: Privilege, Chopard, Lorenzi, Ca’ D’oro, Pal Zileri, Tino Cosma, Jesurum, Il Prato, Davante, Davidoff, Erwin Pearl, Gallerie Sam Marco, Kids Karnivale, Jimmy Choo, Kenneth Cole, Lladro, Movado, Ripa De Monti, Simayof, Tolstoys, Sephora, Ludwig Reiter, Cesare Paciotti, Mikimoto, Oliver & Company,  La Donna, Ann Taylor, Bebe, Houdini’s Magic, Bcbg, Lido Beach Shop, Regis Gallerie, Toys International, Lana Marks, Kieselstein-Cord, Pal Zileri, and Donna Karan Couture.  Jesurum, makers of Venetian lace, Il Prato, offering collectable masks and fine paper goods, and Ripa di Monte, fine glassmakers, are three of Venice’s most respected sources for hand-crafted fineries. All are making their U.S. debut in The Grand Canal Shoppes.

 

 

 

The canal is real down to its last tile, but the clouds float across a painted ceiling

 

But there is more to do in Grand Canal Shoppes than shop. While guests are browsing, jugglers in Venetian masks will entertain along the cobblestone walkways and glass blowers will demonstrate their unique craft in a facsimile of St. Mark’s Square. Joining these and other traditional Venetian street characters are singing gondoliers, each aboard a functional gondola on the “Grand Canal,” which runs the length of the shopping mall.

 

A variety of other entertainment attractions will be available.  Madame Tussaud’s will open it’s first U.S. location in The Grand Canal Shoppes. The Tussaud’s Group is spending about $20 million to develop the 30,000-square-foot exhibit of wax figurines in interactive theatre-style venues.

 

Health resort leader Canyon Ranch will launch is first-ever day spa, a 65,000-square-foot club facility at The Grand Canal Shoppes. The facility will offer guests a sampling of Canyon Ranch’s residential programs, including a wide array of fitness classes, a wellness/medical center, beauty salon, and more.

 

A good workout may be needed after guests sample from the  luxurious list of dining opportunities in The Grand Canal Shoppes. Whether at an intimate piazza setting, overlooking the canal or along “Restaurant Row,” world-class dining possibilities abound with restaurants such as Postrio, Lutece, Star Canyon, Canonita Taqueria, Valentino, Pinot Brasserie, Delmonico Steakhouse, Canaletto, Zeffirino and Grand Lux Cafe.  Grand Lux Cafe is a new 19,000 sq. ft., 24 hour restaurant concept from Blatteis’ client The CheeseCake Factory.

 

In all, The Grand Canal Shoppes will offer 510,000 square feet of retail and entertainment facilities. Architectural design was provided by TSA and WAT&G, both of Nevada. Of the 66 retail units, which lease at an average of $100 psf and require common area maintenance of $25 psf, only three or four locations were still available at press time.

 

Kurt Ouchida, spokesman for The Venetian, told E.S.P. that Sheldon Adelson, the developer, provided $325 million in cash and land toward financing the Grand Canal project. Blatteis Reality reports that the remainder of funds came from investment banker Goldman Sachs, through junk bond sales.  Ouchida also told E.S.P. that the retail, the restaurants, and the entertainment cash investment from Adelson was about $123 million, and that about $300 million was invested by retail, restaurant and entertainment tenants.  Average tenant space uses 7,500 sq. ft.  No tenant improvement allowance was provided, according to Blatteis, except in rare instances.

 

About $300 million was invested by retail, restaurant and
entertainment tenants.  No tenant improvement allowance was provided, according to Blatteis, except in rare instances

 

Schnur sums up the level of excitement that is building around a new retail entertainment complex in a city where splash and glamour is commonplace. “We traveled extensively to find the right tenant mix and worked hard with the architects to create a magnificent environment.  We fully expect that The Grand Canal Shoppes, which offers an incredible combination of tenants, all situated in an extraordinary re-creation of a Venetian canal setting, will not only match, but vastly surpass everyone’s expectations.”

 

 

Next Issue

Part Two

 

For more information on tenants, leasing, retail environment design at the Grand Canal Shoppes, contact: 

Blatteis Realty Co. 310-887-0888, Robert Schnur, extension 232; Dan Blatteis, extension 234; for architectural or other information, contact Grand Canal Shoppes project manager, Jim Elsee, 702-733-5570; for information on The Venetian Resort Hotel Casino, contact Kurt Ouchida, 702-733-5143.