Irvine Co. to rule more directly

Alicia Robinson

The Irvine Co. will hire about 150 employees following its decision

to bring management of its retail centers in-house, but few other

differences are expected to result from the move, officials said.

The commercial and residential development giant announced on

Friday that it will resume managing its retail properties, which have

been handled by outside firms Madison Marquette and Donahue Schriber.

Irvine Co. spokeswoman Jennifer Heiger said the company will hire

some employees of the outside firms to manage the retail developments

they already were handling.

“I don’t think that most people will probably notice any changes

at all,” she said. “We expect that most of the people working on our

portfolio [at Donahue Schriber and Madison Marquette] will stay in

place, just as employees of the Irvine Co. We expect the transition

to be smooth and shoppers won’t notice any difference at all.”

Because the Irvine Co. and outside management have always been

responsive to merchants’ needs, the change is not a concern, said

Traditional Jewelers owner Marion Halfacre, who has been a tenant at

Irvine Co.-owned Fashion Island for 12 years.

“I’m sure it’s going to be running as smooth as it has been and if

possible even better,” he said.

The change was dictated by expansion of the Irvine Co.’s retail

holdings and its growing proficiency in retail management, Heiger

said. The Irvine Co. now has 36 retail centers, a jump from the 21 it

owned a decade ago. Fashion Island is the most prominent of the

company’s 11 retail developments in Newport Beach.

“The more time has gone by and the more properties we’ve added to

our portfolio, the more experience we’ve gained in the management of

the centers,” Heiger said.

In-house management gives companies more direct control over their

operations, which makes more sense for a company that has most of its

properties in one geographic area, said Wally Limburg, a partner at

Strategic Retail Advisors, a Newport Beach-based retail real estate

brokerage and consulting firm.

“Control certainly is an issue, just wanting to have more intimate

working relationships with your tenants as opposed to having a third

party do it,” Limburg said.

Many regional shopping mall companies manage their properties

in-house, but the industry hasn’t shown either internal management or

outsourcing to be a right or wrong solution, he said.

“It just depends on what your internal goals are,” Limburg said.

“They may change.”

The change is expected to be completed by July 1.