Indias decision to allow foreign direct investment (FDI) in multi-brand retail towards the end of 2012 and its FDI policy modified in April 2013 put the country back on the retailing map of the world. However, this is not the first time that India has invited global retailers to set up their shops. In 1997, the government approved 100% FDI in cash and carry wholesale stores under the automatic route and, in 2006, 51% FDI was allowed in single-brand retailing, although with prior approval from the government. In December 2011, the government fully opened up FDI in single-brand retail stores. A number of international retail brands such as IKEA and Carrefour were excited to enter the Indian market and announced their plans to start talks on investment proposals with the concerned ministries. In the much-debated and politically-sensitive multi-brand retail space, however, partial 51% FDI was proposed only in September 2012, with parliamentary approval in December 2012. Retail in India - A Growing Story

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) predicts that the Indian retail sector is poised for 15% year-over-year growth over the next five years through 2018. This robust growth picture also is painted by AT Kearney, whose 2012 Global Retail Development Index (GRDI) puts India as the fifth most favourable destination for global retailers. In 2011, Indias retail industry accounted for 22% of Indias GDP and employed close to 9.4% of the labour force. Organized retail in India currently constitutes only 6-7% of overall retail trade in India, although by 2016-17 this share is projected to grow to 10%. Economic growth of about 7% over the next 10 years, rapid urbanization, a growing young demography with rising income, easy access to credit and rising brand consciousness are indeed contributing to the growth story for the country, but inconsistencies in policy-making, glaring inefficiencies in supply-chain logistics, the high cost of real estate and a shortage of good quality retail properties are the main constraints in achieving the projected growth. While there is no doubt about Indias huge market size that attracts the worlds largest retailers, retail real estate in India is still a young industry. With a history of approximately only 13 years, Indias malls make up only 80 million square feet (sq ft) of space. The global financial crisis and its lingering impacts have resulted in major delays to retail-supply additions planned for over the last five years, with 2012 seeing the lowest number of new mall completions in India since 2006. If all of the planned new supply targeted for completion between 2013 and 2015 gets delivered, India will have 100 million sq ft of mall space by the end of 2015, still a fairly small number given the market size. Visible Impact of FDI Will Take Time

With the relaxation of the FDI policy, the government has ended a waiting period of more than seven years for multinational retailers to enter the market. The impact is likely to be a mixed initially as small retailers and middlemen/agents will face increased pressure on their business with the entry of the international retail-chain operators. However, it will work positively for farmers and small-scale manufacturing hubs as they will find large-scale buyers for their products. It will also be beneficial for customers as this will increase one-stop shopping options with access to international brands. It could require an additional 6-10 years for the market to mature. Even in China, the international giants like Wal-Mart, Tesco, Carrefour, Auchan and Costco had a long settling-in period contrary to a general perception that streamlined approval systems, government facilitation and shorter construction periods can help retailers settle down quickly. While the relaxation in FDI rules will allow a big-bang entry by global retailers, some of them have already set up their business in some way or have collaboration arrangements in place with Indian companies. For example, Carrefour opened its first cash-and-carry store in India in New Delhi, German-based Metro opened six wholesale centres in the country, Wal-Mart plans to invest about US$2.5 billion over the next five years in a joint venture with Bharti Retail and Tesco has signed an agreement with Trent Ltd., the retail segment of the Tata Group, to set up cash-and-carry stores. Additionally, Swedish fast-fashion retail giant H&M has sought permission from the Foreign Investment Promotion Board (FIPB) to invest US$120 million in India to start a fully-owned company that will open 50 H&M stores. IKEA is currently waiting for the final approval from FIPB to open 25 stores with an investment of US$150 million. U.S. casualwear retailer Gap Inc., French apparel retailer Celio and Japanese fashion brand Uniqlo are also ready with their plans to enter India. Some Hurdles To Overcome

The impact of FDI is closely linked with how India can address economic, political and social hurdles. One of the economic hurdles is the high cost of real estate. Rents in India easily account for 9-15% of retailers revenue, which is significantly higher than the global average of 4-10%. International retailers, sensitive about real estate costs, will help to reduce the dominance of central city locations. Good but off-centre locations can bring down the land cost substantially and eventually developers can pass on these savings to their retailer occupiers with rent that is compatible with their retail business. Another hurdle is the role that Indian state governments can play in allowing FDI in the states they rule. Though the central government has allowed FDI in multi-brand retail at the Centre level, the state governments are at liberty to make their own decisions about the implementation of the policy. With Indian elections due to take place no later than May 2014, the decisions of retailers to enter India could be deferred by a few months. Also, the government has laid down some requirements before allowing FDI in retail and these can affect the business planning for international retailers. The retailers must fulfil the conditions of not less than 30% of the value of procurement needs to be sourced from Indian small industries, at least 50% of FDI brought into India should be invested into backend infrastructure (distribution centres, warehousing and logistics) within three years, minimum FDI investment of US$100 million, multinational retailers can conduct their business only in cities with a population of more than one million (54 such cities as of 2011) and a requirement of a minority Indian partner. While these conditions appear fair to most, it will still take at least 12 to 24 months before India can actually experience the fruits of FDI in multi-brand retail. India is likely to witness a new era in retailing which will be defined by the emergence of new formats and, vastly improved collaboration among the various stakeholders and experimentation with concepts such as tourism, luxury and destination-focused retail and rural retail. Upcoming large townships, mixed-use retail developments, retail centres at transport nodes and in office districts, along with a research driven approach by developers, will assist in bringing in quality supply of the right size and in the right place - and hopefully addressing the demand from foreign brands waiting to tap the extensive and mostly under-exploited Indian market.

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JLL: FDI in multi-brand retail... Hope In Abeyance

A rendering of the new 11-story Arena Place. (Courtesy Orion Construction - Jan. 7, 2014)

GRAND RAPIDS, Mich. (WOOD) - A plan to construct a new building in downtown Grand Rapids' arena district has doubled in size after gaining a new tenant.

The Arena Place building will now have 11 stories and cost about $45 million.

Arena Place, located at what is now a parking lot on Ottawa Avenue SW between Weston and Oakes streets, was initially envisioned as a $28 million, five-story building.

The expansion is because law firm Miller Johnson now intends to move into the building.

In total, the new Arena Place will measure more than 60,000 square feet, according to a Tuesday release from Orion Construction and DO MORE GOOD | Hanon McKendry. That includes 10,000 square feet of street-level retail space and a restaurant, as well as 101 housing units and additional office space. There will also be 250 above-ground parking spaces on three levels.

Miller Johnson, which as been located in four floors of the Calder Plaza Building on Monroe Avenue, will occupy the top four floors of the new Arena Place.

DO MORE GOOD | Hanon McKendry, MINDSCAPE at Hanon McKendry and Meritage Hospitality Group will each occupy one floor of office space.

Groundbreaking is scheduled for this spring and the building should open in the summer of 2015, Orion Construction said. Miller Johnson will move in during the summer of 2016.

The Grand Rapids Downtown Development Authorities still needs to approve the changes to the project. Orion Construction said that could happen Wednesday.

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Arena Place project in GR adds 6 stories

MT. VERNON Organizers say the ongoing construction work at Times Square Mall is on schedule and crews have experienced no major difficulties so far.

The work is intended to prepare the mall site for three new retail stores Hobby Lobby, Big Lots and a third tenant that has yet to be named publicly. The third store is being referred to as Retail B.

Since mid-November, crews with Poettker Construction have been installing new entrances at the site for these retailers, as well as completing demolition work inside the mall.

Crews are also building two demising walls between the retail sites in the interior. Also, in the next few weeks, workers hope to begin the steel work for the entrances.

Having the mall open while this work is going on has presented a challenge for work crews, said Eric Kues, project superintendent for Poettker Construction.

Even so, Poettker is on schedule to finish the Hobby Lobby preparation in February, Kues said. Poettker Construction, based out of Breese, is the general contractor on the project.

The Hobby Lobby is pretty well on schedule and Retail B and Big Lots isnt scheduled to be finished until May, Kues said. To keep the mall up and running, theres some challenges there with trying to work around the holidays and all the people, so that was a little bit of a struggle there. It was busy.

Once Poettker has completed its work for Hobby Lobby in February, store crews will be sent in to do finishing work, Kues said. The finishing work should take two to three months.

Hobby Lobby comes in afterwards and they do the finishes, Kues said. So basically all that we leave them is (whats called) a warm gray shell.

The new Hobby Lobby store will be located in the 53,000 square-foot building formerly occupied by Sears. It is projected to open in Mt. Vernon during the second quarter of this year, and will bring about 35 to 50 jobs to the community.

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Mall construction on time

Slide Show

Photo by Perspective Image

Pro Shop at CenturyLink Field

----- Advertising -----

Sandwiched between the end of the 2012-2013 Seattle Seahawks season and the start of the Seattle Sounders soccer season, the project team had four months to demolish an existing 3,100-sq-ft team store and build a new 14,130-sq-ft retail space. In addition to expanding the ground-floor retail footprint, a second-floor mezzanine was added for storage and office space.

Although the Seahawks and Sounders were not in season, other sporting events and trade shows had to carry on without interruption throughout construction. A design-build approach was used to expedite several aspects of the project, including installation of the HVAC, fire projection, sprinklers and electrical systems as well as modifications to the structural curtain-wall system.

Structural steel was completed in less than a month. This included conducting a site survey, creating a 3D model of the entire structure to identify dimensional conflicts, developing and reviewing shop drawings and fabricating and installing the steel.

The project was completed under budget and on schedule.

The new pro shop features a pine facade stained in blue. The concourse wall system includes two clear butt-glazed walls that showcase merchandise on either side of a folding wall system. The wall opens on game days to expose a central flex space.

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Office/Retail/Mixed-Use Developments: Award of Merit

Office tower on hold

Completion of a $300 million two-tower office and retail space project on the heel of San Bruno Mountain was postponed due to leasing problems, it was announced the week of Jan. 3, 2014.

San Francisco-based Myers Development made the postponement announcement days before the 12-story tower, which began development in April 2008, was set to be complete. Postponing construction of the second tower was prudent in the economic climate, said Jack Myers, chairman and CEO of Myers Development Company.

With lease negotiations, our progress is slower than we would like, he said. Building a second building without leasing the first seemed like a bad decision, Myers said.

Visa moves headquarters to S.F.

Foster Citys largest employer, Visa USA Inc., signed a 10-year lease to move its headquarters to San Francisco, it was announced the week of Jan. 3, 2009.

Visa was moving its headquarters into the top three floors at 595 Market St. in San Francisco. The move meant the companys administrative offices were moving to San Francisco but other employees were to remain in Foster City.

Manufacturing index drops to 28-year low

The week of Jan. 3, 2009, signs grew that the economy could turn even weaker, as an index of December manufacturing activity sank to its lowest point in 28 years. Every corner of the sector was down, from bakeries to cigarette-makers to aluminum smelters.

The Institute for Supply Management, a trade group of purchasing executives, said on Friday of that week that its manufacturing index fell to 32.4 in December, a greater-than-expected decline from Novembers reading of 36.2. Wall Street economists surveyed by Thomson Reuters had expected the reading to fall to 35.5.

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From the archives

Construction work is set to start on citys long-awaited 260m retail development

5:13pm Friday 3rd January 2014 in News By Julie Tickner, T&A Reporter

Bradford Urban Garden will close on Monday so construction work can start on the citys long-awaited 260 million shopping centre.

Signs were placed at entrances to the temporary landscaped space, on the site of the new Broadway retail development, yesterday.

The 11,000sq ft park, with grassed areas, wild flower meadows and pathways across the city, was created in August 2010 after initial work on the project stopped.

Shorlty before Christmas, Australian developer Westfield announced that construction would start early in January after all legal documents meaning the scheme would definitely go ahead were signed.

Last night, a Westfield spokesman said: The commencement of the construction works marks a major milestone in the delivery of the shopping centre and the future of Bradfords retail landscape.

The shopping centre will provide a significant economic boost to the city creating thousands of jobs in both the construction phase and on completion. From Monday, we will be able to see the development begin to take shape.

The start of major construction works follows a two-month period of essential preparatory works for the centre which is estimated to create 1,500 construction jobs and 2,500 new retail jobs for Bradford.

Bradford Council leader David Green said: This will be the first major sign of the main construction work starting and its what we said would happen.

Original post:
Bradford Urban Garden closes as Broadway work begins

Kensington Commons, designed in a Santa Barbara style, will include 34 apartments and 10,000 square feet of retail space when completed in August. - Allard Jansen Architects

Kensington Commons, designed in a Santa Barbara style, will include 34 apartments and 10,000 square feet of retail space when completed in August. / - Allard Jansen Architects

Developers and residents have reached common ground in the historic Kensington neighborhood.

It's a seven-year odyssey of how not to do infill development in the San Diego.

Kensington Commons, a $6.2 million, 47,442-square-foot apartment and retail project, is rising at Marlborough Drive and Adams Avenue with nary a squeak of protest from the neighborhood south of Mission Valley and east of I-15. When finished in August, it will sport 34 apartments, 10,000 square feet of retail space -- with one suite leased to Pacific Dental and negotiations nearing completion on a food service and a postal/stationery outlet.

There will be wider sidewalks, leafier landscaping and a Santa Barbara-style architecture by architect-developer Allard Jansen.

Renters, who will pay up to $2,760 per month, won't have a pool or workout space or other top-drawer amenities to large downtown condo tower complexes. But they will have a movie theater and public library across the street, a collection of popular restaurants up and down Adams, quick access to the freeway two blocks away and a bus stop out front.

Allard Jansen, the architect-developer of Kensington Commons, lives and works in the neighboring Kensington Park Plaza that he built in 1999. Nelvin C. Cepeda

"It's a lifestyle being embraced more and more and the wonderful idea that you potentially will run into a neighbor by coincidence and start a conversation," said Jansen, 60, who lives with his wife at Kensington Park Plaza, which he built in 1999 immediately west. "More connecting neighbors with other neighbors will be great!"

But this idyll of urbanity came after a seven-year battle that pitted neighbor against neighbor, city, developer and the economy. No wonder such mixed-use projects happen so rarely, given the hassles faced by competing parties.

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Common ground reached at Kensington Commons

Dulles Town Center Location: Near the intersection of Route 7 and Route 28 Developer: Lerner Enterprises Fact Sheet: There are plans for a total of 5.4 million square feet of office, commercial and retail space.

Lerner Enterprises looks to expand Dulles Town Center in 2014. The development, which was started in 2014, has two big projects slated to take place in the coming year.

A Regal Theater began construction in May 2013 and should be finished in the summer of 2014.

The Windmill Parc apartment complex, containing 433 apartments, will also begin construction in May with move-in for its first residents starting in 2014.

Nokes Plaza, which Lerner Enterprise's website describes as "a planned 56,000 square foot mixed-use office, medical, retail building at The Corporate Office Park at Dulles Town Center" is slated to finish construction some time in 2015.

On Nokes Boulevard there will also be two pad sites for retail locations.

Loudoun Station Location: Adjacent to the final stop on the planned Silver Line Developer: Comstock Companies Fact Sheet: One million square feet designated for class-A office space, 300,000 square feet planned for restaurants, retail and a hotel.

Groundbreaking on Loudoun Station began in April 2011.

The Loudoun Station website describes the new development as "a signature 'downtown' community with an exciting mix of shops, restaurants, residences and offices, along with a hotel and 11-screen movie theater."

As its name would imply, Loudoun Station is expected to be adjacent to the Silver Line at the terminus State Route 772 station.

Original post:
Loudoun County developments to watch in 2014

By THOMAS CASTLES

Staff Writer

A sign advertises available space in the Epicentre shopping plaza on Route 9 in Manalapan. The vacancy rate for retail space in central New Jersey climbed to 9.8 percent in the second quarter of 2013. STAFF PHOTOGRAPHER ERIC SUCAR Storefront vacancies have blemished many of New Jerseys busiest retail corridors in recent years, and experts say there is no shortage of reasons why.

According to a report published by retail broker R.J. Brunelli & Co., Old Bridge, the retail vacancy rate in central New Jersey climbed to 9.8 percent in the second quarter of 2013, up almost a full percentage point from the previous year. That amounts to 2.95 million square feet of vacant space on routes 1, 9, 18 and 35 in Middlesex, Monmouth, Mercer and parts of Ocean counties. If added up, the unoccupied space is equivalent to the size of about 20 vacant Walmart Supercenters.

But Walmart and other big-box stores of at least 20,000 square feet have been doing relatively well. According to Brunellis data, 225,000 square feet of previously unoccupied big-box space was filled by tenants over the past 12 months.

Empty retail buildings sit alongside Route 18 in East Brunswick. However, that positive trend was not enough to offset increasing losses of smaller spaces.

Much of the small-space woes can be attributed to the inability of small chains, mom-and-pops and franchisees to take advantage of vacancies, because financing for new ventures or business expansion remains so difficult to get, Brunellis report states. Until the economy improves and banks genuinely start to loosen the spigots, it will be difficult to make much of a dent in the small-store inventory. The impact of the 2008 financial downturn should not be understated when analyzing data like Brunellis, according to New Jersey Retail Merchants Association President John Holub.

PHOTOS BY KAREN KESTEN/STAFF Clearly, the economic environment has changed since 2008-2009, and I think businesses as a whole are continuing to scratch and claw their way out of the worst downturn in 70 years, Holub said. But it seems that every few years there are fits and starts and ebbs and flows, so I dont think the [recent] decline [in occupancy] is entirely surprising.

Economic uncertainty may just be another punch to roll with for area retailers, but competition from the Internet presents a much more sizable concern, according to Robert Burchell, professor and co-director of the Center for Urban Policy Research at the Rutgers University Edward J. Bloustein School of Planning and Public Policy, New Brunswick.

A rising tide lifts all boats and a decreasing tide puts all those boats back on the ground, so the economy is always present and a major influence on American life, Burchell said, adding that Brunelli representatives and analysts are very well-respected in their field. But there will be a long-term future increase in vacancy rates [no matter how the economy fluctuates] because of the competition of the Internet.

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Changing times challenge retailers

Chicago, IL (PRWEB) December 31, 2013

Construct-A-Lead, the Construction Industrys most efficient construction lead service, reported today that the following Hotel construction projects will have the necessary approvals and will go forward. Businesses interested in providing construction bids and other services relative to these projects, should visit construct-a-lead.com and reference the Project ID listed below to obtain direct contact information for each construction lead:

Cincinnati, OH - DoubleTree Suites Plans call for the renovation and conversion of the Garfield Suites hotel into a DoubleTree Suites hotel. Construction start: Q1, Q2, 2014. $15,000,000 Project ID: 1320629

New York, NY - 346 Broadway- Plans call for the renovation and conversion of the former courthouse into a five-star hotel and 100 140 condominiums. The (yet unbranded) hotel component will include 50 to 100 rooms over two floors on the eastern Broadway side of the building. Construction start: Q1, Q2, 2014, $300,000,000. Project ID: 1320583

Honolulu, HI 2139 Kuhio Avenue- Plans call for the new construction of a 39 story condo hotel. Construction start: April, 2014, $159,500,000. Project ID: 1320503

Augusta, GA - Hampton Inn & Suites - Plans call for the new construction of a single 5-story block-and-plank hotel building. 78,776 SF, 126 rooms. Construction start: January, 2014, $8,000,000. Project ID: 1320648

Philadelphia, PA Avenue Place Plans call for the demolition of 2 of the existing structures and the new construction of a mixed-use luxury boutique SLS International hotel with 149 guest rooms, six suites, and 125 condos. Plans also call for 220 covered parking spots. Construction start: Q2, Q3, 2014, estimated. $90,000,000 Project ID: 1320587

Houston, TX - Springhill Suites Plans call for the renovation of the old Humble Oil Building and the conversion of the apartment portion into a new 166 room Springhill Suites Hotel. Construction start: February, 2014. $10,000,000 Project ID: 1320602

Santa Monica, CA The Plaza - Plans call for the new construction of retail space on the ground floor and office space, affordable housing and a 225-room hotel throughout. Construction start: Q1, Q2, 2014, $300,000,000. Project ID: 1320554

Worcester, MA Hotel at CitySquare- Plans call for the new construction of a full-service, 150-room hotel. Project is expected to achieve LEED Silver Certification. Construction start: Spring, 2015. $36,000,000 Project ID: 1320551

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Construct-A-Lead Reported Today That the Following Hotel Construction Projects Will Have the Necessary Approvals and ...