Q&A: Mike Wethington

By Buck Wargo

Friday, Nov. 27, 2009 | 3 a.m.

The arrival of the holiday shopping season keeps one Las Vegan on his toes.

Mike Wethington is general manager of Town Square, which this month is celebrating its second anniversary.

Despite the recession, Wethington said he expects Town Square to be ahead of last year’s shopping season. The retail center, developed by Turnberry Associates and Centra Properties, has become a meeting destination for locals who try to avoid the hassle of the Strip.

IBLV: How did you get in this profession?

Wethington: It was kind of a fluke. I was actually interviewing for a finance position that turned out to be an agriculture finance position. I was waiting for a roommate who was going to interview with the same company. I was sitting in that long hallway in a college interview session where you sit outside the room, and I started chatting with a guy who turned out to be a vice president with J.C. Penney. One thing led to another and all of a sudden I am moving to Las Vegas. I was a management trainee. I started at the Meadows mall. I went to the Boulevard mall. I opened the Galleria within the J.C. Penney management team. From there, I was with Penneys for nine years, and then moved into property management with Forest City Enterprises at Galleria at Sunset.

So you had no experience in retail?

Not really. I never worked a job, even in college or high school, in retail. It was my first adventure into retail.

You wanted a finance career?

Finance was the direction I was heading. I have always been more of a numbers guy.

Why did you leave JC Penney?

I think I got to the point in my career where I wanted a change. I enjoyed retail. I enjoyed the action. I enjoyed the excitement. I really enjoyed dealing with people. That was something I loved to do. Property management came as a fluke, too. I actually received a cold call — somebody looking for an assistant general manager for a shopping center in Las Vegas. I didn’t find out it was Galleria until shortly before the interview. I was going to the interview in the mall management office, trying not to let anybody on in the retail store. Ironically, the hallway for the management office at Galleria at Sunset is right outside the main doors of J.C. Penney. It was a great opportunity for me. It got me to where I am today. I was with Galleria for seven years and then I got the opportunity to move to California and opened Victoria Gardens in Rancho Cucamonga. In 2006 the opportunity arose to come back to Las Vegas, and I opened Town Square.

How did this come about?

It was kind of a referral of a friend. I had a friend who was called on it. (The interviewers) didn’t quite feel he had the experience for the position, but he said he knew somebody who did and who most likely would be interested.

Were you following the project at the time?

I knew Town Square was coming. When my friend contacted me, I didn’t know they were at the point of hiring in 2006. I started in September 2006, about 14 months before our grand opening, and we opened in November 2007.

What is your job?

My job is to run the entire shopping center operation. The different divisions that report to me are marketing, operations, security, valet and housekeeping. The way I look at the shopping center is no different from how I look at my house. Every day, you want your house to look good. You want it to be safe. That is the same thing with Town Square. We need to make sure the lawn is cut and the bushes are trimmed and the lights come on when they should, and the streets are cleaned and, of course, the stores are open and ready when the customers come. There is a big focus on security. We definitely want to make sure Town Square is safe and secure, and people can come here to enjoy.

What was it like when you opened?

When we opened in 2007, we had 38 tenants. It was a little challenging the first year because we didn’t quite have the number of tenants that a lot of our competition had. Now we are up to 106, and we have 11 more coming within the next six months. We are at a great time for Town Square to really showcase ourselves.

Is there anything that could have been done differently?

As far as us, maybe expansion of our event areas. The focus of our events are in Town Square Park. But, at the end of the day, I think the Las Vegas consumer is happy with the way the development is.

What were the expectations when you opened?

It was always going to be a mixed-use center, and we accomplished our goal with that. I think, with the combination of Whole Foods, Robb & Stucky for furniture, Rave Motion Pictures for entertainment, 12 restaurants open with four more coming, a piano lounge coming and the office space, it was designed to be a downtown, where people could come for any reason. If it’s just to come here and get a cup a coffee and sit in the park and enjoy the weather, that is the reason to come here. Or if it’s to bring the family and go to the children’s park and then go shopping and maybe have dinner and go shopping at Whole Foods before they go home — that was the intent of Town Square — to have something for everybody if we possibly could. That is the direction we continue to go.

Has it met expectations?

The great thing about Town Square is our location. You can’t beat our location in the Las Vegas market. I live in Henderson. I have some friends who live in Summerlin. When we are going to get together, we typically meet at Town Square. It’s not because I am the general manager here, but it is because it is convenient for both parties. I know a lot of people who do the same thing. There are a lot of options — going to a movie or grabbing yogurt or going shopping and going to happy hour or the children’s park and hanging out in the park with your kid.

Who are your competitors?

Primarily, the suburban shopping centers, The District, Galleria at Sunset and, obviously, Fashion Show being 5 miles from us up the street, with the number of retailers they have. We are closer in line with their retail settings.

Are you a District on steroids?

The District came to Vegas and proved that lifestyle centers can be very successful here. It is a great design and great layout. They have done very well. Fortunately, with Town Square, we were able to put enough land together because it is not always easy to put 117 acres of land together and build a Town Square.

How much development do you have?

We will have 1.5 million square feet once we are built out. We are a little over 900,000 square feet now. We do, within the property, have several pad opportunities for expansion. For us to expand past that 1.5 million square feet, we would have to build within our service lots and if you build something, you would have to add some parking, and most likely that would be garage parking.

What is happening around you?

You should see construction start in February with the expansion of Sunset Road from Las Vegas Boulevard over to Decatur. The most important thing for us is there is a bridge being added over Interstate 15. There is the opportunity for Town Square, for people on the west side of 15 to come down Sunset.

What else is next to you, and are there any opportunities for your expansion?

There is no land between us and the freeway. There is land owned north of the property by private entities. There possibly could be opportunity if Turnberry ever wanted to look at that. But we have several opportunities here within the site to expand.

What is the extra 600,000 square feet going to be?

It could be a combination of things. We are mixed use, so we have all kinds of opportunities. You could look at a hotel on the site at some point.

What don’t you have here that you would love to have?

I think we would like to have a fashion department store — that would be our primary focus. Nordstrom is out there, Bloomingdale’s is out there and Macy’s is out there. All three of those would be great.

What about your other uses?

In addition to the 900,000 square feet of retail, we have 300,000 square feet of office space. Our main anchor is the Las Vegas Chamber of Commerce. We have six buildings with office space potential on the second or third level. Office is definitely a focus for us right now, but it is a challenge in the market.

How much office space is occupied now?

There is about 50,000 square feet. As a developer, you are going to see what is the best use for your property at any given time, and now in Las Vegas it is a challenge, with a 25 percent vacancy rate. You have to look at your asset, what is financially most important for us right now to take us to the next level.

Could it be retail?

Some of it could as long as you have first-level occupancy, but it definitely could be turned into hospitality or convention space.

No residential is allowed, right?

No, because of the zoning of the airport.

Would residential have worked here?

It is hard to say today after the fact since we have seen what is happening in the residential market in the valley. I think The District proved it worked well. It will be interesting what happens at CityCenter, as well. I think the center works well with mixed use of office, entertainment and restaurant and shopping. But I am sure residential could have done well. There are several lifestyle centers that have office or residential on the second or third levels.

Would people rather come here to an outdoor center than an enclosed mall?

Everybody has their own opinions on what they like to do. We think we offer great opportunities here. Who doesn’t move to Las Vegas for the weather? It is a little challenging in the summer. It gets a little warm, but the other nine months of the year, the weather is perfect. I think people like to walk the sidewalks and window shop. The opportunity we put in with the outdoor park, the bands in the park, our 3,000-square-foot children’s park. The typical indoor mall — you walk into it in the daylight hours or evening hours — it is mostly the same except for the lights coming on. With an exterior setting, it changes with the weather, lighting or full moon or not a full moon, with a cloudy day or not a cloudy day. It is fun in an outdoor center in that it is constantly changing.

How long do people spend here?

The average time a customer spends here is well above the bench mark out there for lifestyle centers across the country. We are looking a little over two hours. The average throughout the country is one hour and 19 minutes.

Do you get a lot of tourists?

We have about a 30 percent tourist base. It continues to be an opportunity for us. As the tourist market has struggled in the valley in this past year, we look at the tourist market picking up as a possibility to continue to expand.

Why would tourists come here?

Possibly because they are not finding the store they want within the Strip or it is a setting away from the Strip. You get out of the constant night life and movement of the Las Vegas Strip. It is a little more subdued. It is a little more relaxed. We are very family-oriented. Whole Foods is a big driver for the tourist market. We have a great connection with the Taxicab Authority and with the Las Vegas Convention (and Visitors) Authority. We partner a lot with the different tourist trades within the market to try and drive it to as many tourists as we can.

How do tourists know about it?

We have different promotions we do within the hotels. We do taxicab events with the taxi drivers. It is just like marketing in the valley to the local market. You are also marketing with the tourist market.

Does affordability help with that?

If you are looking for that luxury merchant, that is not really what our setting is. We are more of a middle- to higher-end retailer. We are definitely affordable for the local market and the tourist market. If you feel the Grand Canal Shoppes or the Forum Shops are too pricey, Town Square is an option. The nice thing for us is that we are just a few miles down the Strip, so it is easy to get here. It is a quick taxi ride or bus ride, even walking distance for those who are closer at Mandalay Bay.

Have you had to revise leasing contracts to keep tenants?

Retailers across the country are analyzing all their options in an effort to reduce costs. Our goal at Town Square is to work with our partners and help them succeed. While I can’t divulge specific information about lease terms and rates, I will share that we’ve been flexible with our tenants and are always focused on reaching agreements that benefit both parties.

Your park is a centerpiece of Town Square that drives families to the property. Are there enough child-centric retailers to take full advantage of the spending power of one of your key demographics?

Seventy percent of our shoppers are between the ages of 18 and 44, and our tenant mix caters to this demographic. We have several children’s stores within Town Square, including Tommy Hilfiger Childrenswear, Gymboree, Abercrombie, Justice as well as children’s sections within H&M and Old Navy. In addition, we have several stores that cater to the ‘tween and young family market including Hollister, Abercrombie & Fitch, American Eagle, Zumiez, Beachworks and Skechers to name a few.

Have you gotten feedback about your parking meters? Couldn’t the meters be seen as off-putting to customers?

Town Square was designed to have a downtown, charming feel, and the metered curbside parking is a key element of the design. The parking meters are a convenience for many as they enable parking directly in front of the stores. Shoppers who want to go to one or two specific stores can park, visit the stores and leave. For those who want to park and stay awhile, we have more than 5,700 free parking spaces around the center. So, our shoppers have many parking options. They can choose to park at a meter, in a nearby garage or surface lot or they can take advantage of the complimentary valet.

Will 2009 be better than 2008?

The positive thing is sales are driving up. It is a mix across the board. It depends on the sector and the merchant. Sales are still good. We are very positive about the direction we are going. Each time we add a new store, it adds more customers and opportunities for the other stores that are here. I think we will be a little ahead of 2008. It will be a couple percent. I think it says one thing, the consumer likes Town Square. We have had an effect in the market. The challenge at the beginning of the year was an unknown.

What are you expecting this holiday shopping season?

We are expecting it to be positive. I don’t think you are going to see double-digit results yet. I think having a positive result is fantastic right now coming out of these past three quarters.

What is that based on?

Based on our trend going the last couple of months and what is happening in the market and with such things as CityCenter opening, that is thousands more people back in employment who will go out and shop again. Vegas is challenged right now with unemployment at 14 percent, but CityCenter adds a lot of optimism in the market. Yes, we said we would open and we did open.