Friday, July 18, 2008 by Turner Hutchens
Nashville Business Journal
Hickory Hollow shifting gears
Mall pursues other uses: offices, call center

Hickory Hollow Mall is going beyond retail in its search for new tenants.

Large portions of the Antioch mall are being offered up for alternative uses, including educational campus, call center, data center, back office, e-fulfillment, institutional agencies and medical uses.

"We feel as if it's a great facility, much like 100 Oaks was redeveloped," says Billy Lyell of Nashville Commercial/Cushman Wakefield, who is handling the leasing. "With the changing demographics, we feel like there are some opportunities for the facility."

Katie Reinsmidt, director of corporate communications for the mall's owners, CBL & Associates Properties Inc., would not confirm or deny plans to open Hickory Hollow to alternative uses.

"We're definitely looking for ways to enhance and grow (Hickory Hollow) as a property," Reinsmidt says.

CBL & Associates Properties Inc. also owns the Cool Springs Galleria, Rivergate Mall and Cool Springs Crossing.

Lyell says Hickory Hollow has excess space and there is a demand for large office space in Nashville. The mall can accommodate up to 100,000 square feet of contiguous office space, or several smaller areas, Lyell says.

The total space available could reach 215,000 square feet. By comparison, the space being left vacant by Nissan in the AT&T building is about 240,000 square feet.

The mall, located near Bell Road and Interstate 24, has about 1.1 million square feet of leasing space.

Lyell declined to quote rates for space, but says they will be some "of the most competitive rates in Nashville." He says there have been talks with several potential tenants.

Buck Haltiwanger and Terry Smith of Nashville Commercial/Cushman Wakefield are also working on the leasing of Hickory Hollow.

Rick Helton, managing director of ProVenture says opening the property up to alternative uses is probably a wise move for the owners. He says there are some similarities to Hickory Hollow and 100 Oaks Mall, which has leased more than half its space Vanderbilt University Medical Center for some back-office operations.

"I think it's a trend that may repeat itself in other parts of the country," Helton says. "Retail is changing, and there are going to be malls that need to transition."

The office space will be desirable with the large floor plates, amenities, parking and interstate access, says Tim Stowell with Corporate Real Estate Advisors.

"It opens up another opportunity for office users, large office users coming to town," he says.

It might not be a very good sign, however, for the future of the shopping mall or retail in the area, Stowell says.

The mall, which opened in 1978, has faced competition from other area malls, as well as from retail development in Rutherford County, which attracted shoppers who once made the Antioch mall their shopping destination.

Hickory Hollow has been losing tenants, most recently Linens 'n Things, and Dillard's, which is slated to close Aug. 2. Steve & Barry's, which has a store at Hickory Hollow, filed for chapter 11 bankruptcy earlier this month. The mall still has a Sears and a Macy's.

The new office tenants will bring a great benefit of traffic for the businesses in the mall, particularly the food court, Lyell says.

David Crabtree, executive vice president of Brookside, a Nashville commercial real estate firm which works extensively in retail, says the change is not necessarily bad news for the mall.

"I think that we live in a changing retail and changing business environment, and owners have to be nimble and flexible about how they manage and lease their properties in order to best serve the communities," he says.

There are many projects where retail and office can be successfully mixed, to the great benefit, Crabtree says.

"Activity breeds activity," he says. "CBL is a very smart landlord, and they're very smart about what they do."

thutchens@bizjournals.com | 615-846-4254