Inside Denver’s retail reinvention: How Northfield’s overhaul reflects a sector in flux

In Colorado, as Denver’s retail vacancy rate tumbles to decade lows – sitting at just 4.3 percent in Q2 2025 – leasing momentum is heating up across neighbourhood centres, despite rent growth remaining modest and development stalling. Data collated by real estate firm Matthews showed leasing activity is being dominated by quick-service restaurants and local operators, with newer, freestanding formats becoming more desirable and smaller, value-add trade prioritised, reflecting both strong demand and supply constraints.

At the forefront of this shift is The Shops at Northfield, a bustling open-air centre in Denver’s Central Park community, whose reinvention is being spearheaded by Stockdale Capital Partners. Under the investment firm, which acquired a stake in Northfield in 2021, the centre is being reimagined as a mixed-use community hub, pointing at a new blueprint for suburban retail. At the crux of its transformation is a lifestyle-forward layout prioritising experience, walkability and community.

Denver’s space issues fuel strategic leasing

The Shops at Northfield’s evolution mirrors broader trends reshaping Denver’s retail market, which is pivoting from big-box formats and second-generation spaces towards more experiential retail. Originally developed in 2006 on the site of the former Stapleton Airport, the centre itself has long served as a key retail space in Denver and has remained in place as much of the surrounding residential area transformed.

“Northfield was developed almost as the heart of the community, but not much around it was built at the time it opened,” Bastian Peters, co-head and managing director of retail at Stockdale, told FashionUnited. “Now, with the 20th anniversary coming up in 2026, the moment felt right to reinvest in the neighbourhood and re-engage the community.”

Over the last two decades, the Central Park neighbourhood has added more than 14,000 new homes, hotels and multifamily units, yet during this time the shopping centre has not necessarily evolved with the community, Peters noted. The exit of legacy department stores, like JCPenney and Macy’s, from the site also presented both a challenge and an opportunity. Rather than attempt to refill these large spaces with similar retail models, Stockdale saw a chance to reposition the centre entirely.

Big-box to mixed-use: Repositioning in action

“JCPenney and Macy’s are likely not meeting today’s consumer demand, so that gave us a chance to reposition those department store boxes, re-engage the consumer’s needs and bring fresh blood to the property,” Peters stated. According to the retailer’s press release, the former anchor spaces will now be home to the formerly online-focused Wayfair’s first large-format retail store west of the Mississippi, as well as a 103,000 square foot Lifetime fitness club and speciality grocer.

“These tenants are more than just exciting new additions, they’re the foundation of the project’s next phase,” said Jeff Bhathal, co-head and managing director of Retail at Stockdale, in a statement. “Each brand brings unique energy and synergy that aligns with the surrounding community and enhances the overall experience. This is a pivotal moment in creating a truly vibrant, connected destination for the Denver Metro area.”

The departure of larger names doesn’t mean that established retailers are moving away from the centre entirely. Lululemon, Nike and Lucky Strike are recent additions to the lineup, while Northfield’s H&M and Ulta Beauty stores are reported to be the highest trafficked of the brands’ locations in Colorado. According to Stockdale, this range of offering has helped to drive strong gains in both traffic and sales, with a 30 percent increase in total sales seen over the past three years.

Community as a catalyst and the rise of experiential retail

Peters cited the growth of the surrounding community as a core contributing factor to this performance, demonstrated in a 7 percent uptick in traffic over the past 12 months, which in turn has fed directly into sales. Strong curation has also helped, proving the centre is “on the pulse of what the consumer is looking for today”. This is largely down to Northfield’s renewed focus on experience and ability to cater to the daily needs of consumers, not just relying on retail alone.

Northfield’s transformation aligns with the wider retail market in both Denver and the US. With little net new retail gross leasable area (GLA), developers are turning to adaptive reuse strategies, not only for efficiency, but to also stay attuned with modern consumer expectations. “It’s all about market relevance,” Peters said. “If you’re not speaking to the customer, they won’t come, because they don’t have to.”

Across the US, retail centres are being reimagined to prioritise experience over footprint: more green space, activated common areas, experiential placemaking and a mix of uses that meet both daily needs and emotional connections. That includes everything from family-friendly amenities to a stronger food-and-beverage presence. These shifts reflect increased investor interest in suburban retail hubs, particularly in high-growth neighbourhoods where behavioural patterns have changed post-pandemic.

The focus is no longer just on retail sales, it’s on staying essential to the community. Peters noted: “For me, the Northfield of the past was more of a destinational or target-driven shopping experience. Now, it’s about how to curate an offering that invites shoppers to stay to meet their friends and family. This is the intent of the investments we’re making here, creating more of a park and catering to consumer needs.”

Landlord-tenant relations get strategic makeover

The relationship between the landlord and tenant is also shifting; turning more collaborative, over simply transactional. This development comes as properties are increasingly expected to meet the needs of not only their market, but also their merchants. Landlords are thus moving beyond the traditional lease model, almost becoming strategic partners in the creation of new experiences that drive traffic and sales.

“It’s all about relationships and wanting to do something together. With Lifetime Fitness, for example, we have created a strong partnership over the years. They trust our commitment to invest back into the properties we own and manage, and they follow that to a degree,” Peters noted, referencing the need for active dialogue and shared goals.

For landlords, the path forward relies heavily on reinvention. As Northfield is exhibiting, success partially relies on tailoring assets to the evolving needs of consumers and surrounding communities, thinking beyond traditional retail. Peters points to 2027 as a milestone year; by which time the centre, having completed scheduled updates through phased openings, intends to reflect a more holistic, community-anchored model.

For the sector as a whole, the takeaway is that static formats aren’t holding up. Relevance is earned through ongoing adaptation, and the most resilient properties will be those built for change.