RE: DESIGN CENTER

In my recent post on happenings in the Design District, I mentioned the absence of the Design Center in the marketing organization. (Do all the Design/Decorative names confuse you?) Please skip below to read the very articulate response from George Nash–and I thought I had written the definitive history of the dec center. Another historical note–the prison next to the Design Center that used to be the hotel was where the Beatles stayed when they came to Dallas.

The DALLAS DESIGN CENTER was conceived by 3 partners – Jim Williams, Thomas Woodward, and the third guy I can’t remember. I can track that name from Lou Samuels (the only living original “tenant-owner”) – the others were Graham Cole, Waitman Martin, Jerry Hargett, and Vivian Watson, in 1981. It opened the first of 3 buildings “A” with Waitman as the anchor tenant for that building. Funny – Walter was going to take that space, didn’t , and later on did after Waitman’s demise. When Waitman opened and for 18 months after – everyone thought he fell off the mountain being so far down the road with no neighbors except for a jail. Bldgs. B, C, and D opened by 1982 when I worked for Jerry, where Sutherland now exists.The reason for the Center was to offer top level design showrooms the space they longed for to show more product lines, and entice the deal with part ownership for the project. This was something Trammel Crow was not in the position to do – nor would they offer any rent concession, rather only increases for less than adequate rentable spaces at the time. You were with JEH at that time.

Slocum was just a street at the time that only went down to the jail – no one went any further than the old post office behind Oak Lawn Plaza. The Design Center was referred to as “that New Center next door to the jail” and it had nothing but hardships in attempting to root itself as a stable center for high-end Design trade. Taxi Cabs would take a supplier anywhere but the Design Center or they would get lost – they simply didn’t know where the hell the Center was.

A few years went by, with a looming disaster on the horizon that became a reality in 1985 – the Texas economy went bust. Still the Design Center, having gone through foreclosure and several owners, kept itself as a Design – To The Trade – showroom plaza. The rents, which started around $6.00 per foot took a downward pace, but in the 90’s the economy came back and rent started to level and then climb again. I must say, even though the times were tough in the 80’s and into the 90’s we had long leases – and some concrete tenants.

All along, the Design Center established itself as the anchor to draw traffic and business all along Slocum and Dragon streets. As Vivian Watson used to say: “yes – those are the ‘bait shops’ that thrive off the fact we pioneered this area down here next to the jail…”

It is interesting that in the article on Gary Elam, who did at one time have a lease on the space Sutherland now has, spearheads a new association across the driveway. He is a nice guy, and I think it is a good thing for these tenants to organize and share information, and an excellent idea to hold the annual event Slocum Street Style. But it is inevitable that rents will definitely go up along those streets, as buildings are bought for what I understand to be hitting now at $100 per foot for the dirt. Yep – rents will in fact go way up…..That, because – land developers are buying the dirt, and eyeing the area for re-development with multi-level living, shopping and services. One-story design shops will not survive.

In short, the tenants of the Dallas Design Center have full protection that the Center will remain a Design Center. I recently asked about the economics of our Center. The Center recently sold, and tenants with short leases, or leases coming up will have to face escalations, however the Center will remain a center. Buying out the tenant leases – which are long term, would prove totally impossible to make the dirt profitable for any other reason. Our rents will stay competitive within the area, given, this is a trade only, established design center that will not be going anywhere, or enticing a different type of selling business. The rents are definitely higher here than in the other areas of the District, but I am comfortable I don’t have to worry about what goes on across the freeway impacting the stability here. I welcome what is going on around – it is the future of great change, and it would be nice to see the vagrants, beggars, homeless, and jail visitors get moved away – naturally through time - a little farther down the street.It’s actually the jail that would make a nice hotel. It once was – when Doris Day owned it. Some history.

Nor do we have to be necessarily worried what happens up and down Slocum and Dragon. I am glad there are more design showrooms, antique shops and related businesses. And I hope every shop does a good business.However, if they do not have the security of a long lease and the protected, long-term interest by a strong design center minded landlord, well, it would indeed be time to worry….