Despite High Profile Bankruptcies and Mergers, Retailers Finding Ways to Open New Stores As Consumers Regain Buying Power

With more housing bust markets like Phoenix, Las Vegas, the Inland Empire and Sacramento continuing to gain jobs and economic strength, retailers absorbed about 13 million square feet of neighborhood and strip shopping center space in 2014 -- double the lev of demand of the previous year -- and retail vacancies have fallen below 10% for the first time since the recession in 2008.

Those were among the key findings presented at CoStar's State of the U.S. Retail Market 2014 Review and Forecast, presented by Suzanne Mulvee, director of U.S. research, retail; and Ryan McCullough, senior real estate economist, for CoStar Portfolio Strategy.

In particular, the analysts noted the long-awaited lift from recovering home prices and hiring seen at year-end for local neighborhood shopping centers and their small business and boutique tenants. While this retail center segment still has a lot of ground to make up relative to faster-recovering power centers and malls, demand is now beginning to ramp up, McCullough said.

"We've seen net absorption really come on strong and vacancies are starting to fall quite quickly" due to the limited amount of new retail construction, stated McCullough.

Meanwhile, the $43 billion of retail property sales transacted in 2014 surpassed the amount of retail property sold in 2007 to set a new rcord as the strongest year for transaction volume, with continued low interest rates lifting investor demand. Pricing for retail property has risen about 38% from its 2009 trough, according to the latest CoStar Commercial Repeat Sale Index (CCRSI). Also, the average sale price per square foot paid for retail is rising the fastest among the six top U.S. metros, especially for luxury shopping properties in New York City, Southern California and Miami.

Both investor and tenant demand for retail property, which has wobbled up and down for several years, have now tiered-up steadily over the last several quarters. Despite the negative headlines on store closures by Radio Shack and other national chains, "retailers are finding a way to open new stores, and demand is not only positive, it's rising," Mulvee points out.

Job growth and wage gains, combined with the drop in gasoline prices, continue to provide a boost for consumers, retailers and landlords alike across the country. Sustained $2-a-gallon gasoline could boost consumption and lift retail sales by as much as 5%, according to a CoStar Portfolio Strategy analysis of U.S. Energy Information Administration data.

Nationally for all retail property, the vacancy rate fell another 20 basis points to 6.3% to close 2014 and net absorption of shopping space totaled 81 million for the year, both are the strongest readings since 2008.

Read the original post:
Retail Property Market Gets Boost from Housing Recovery, Strenthening Local Economies

By Ian Bauer, Milpitas Post

Plans for an enclosed Asian-themed mall and hotel to be built on a portion of the partly-vacant McCarthy Ranch Marketplace have barely moved forward since the project was first approved by the city more than a year ago.

In February 2014, a prior Milpitas City Council approved a conditional-use permit, general plan amendments and a final environmental impact report related to Canadian developer TMS McCarthy Inc.'s $100-million Pacific Mall Silicon Valley project, to be located from 11 to 111 Ranch Drive.

The council's approval allowed for the conversion of the existing 25.1-acre retail site -- plagued with shuttered businesses near the intersection of McCarthy Boulevard and Ranch Drive -- and granted demolition of buildings from the old Borders Books and Music (currently Furniture City Plus) northward to the Dollar Tree store.

The action also allowed construction of 284,587 square feet of retail space for individual sellers of boutique clothing, electronic goods and other merchandise in a two-level mall, a 240-room hotel and an 835-stall underground parking garage.

The total net increase in floor area is 304,726 square feet, including the hotel space.

The project will be sold to individual owners as condominium units for small business retail and commercial space for up to 450 stores (with tenant spaces ranging in size from 143 square feet to 2,766 square feet). The site would also feature a gaming arcade, a community performance stage and one large food court.

According to the developer, construction on the project is supposed to begin this year. The mall's first full year of operation was expected to occur by 2017.

But since the council's approval last year no major advances have occurred.

"We have been communicating with the Pacific Mall developer," Milpitas Planning and Neighborhood Services Director Steve McHarris this week. "They are working on minor building modifications to their plans, and have been completing relocation and lease arrangements with their existing tenants on their property which has required more time on their end."

See the original post here:
Approved Asian mall-hotel in Milpitas next needs building permits

By Laura Barnhardt Cech March 6 at 11:01 AM

W. Thomas Curtis could be considered a pioneer.

Curtis was among the first residents of King Farm, in 1999, when there were still acres of vacant fields left from a closed dairy farm.

I remember all the dust, says Curtis, a financial planner. It was being kicked up by the all the construction crews. Wed have to clean the front porch almost every day.

From its dusty, agrarian beginnings, the planned 430-acre community now has 3,200 single-family houses, townhouses, condominiums and apartments, with about 8,000 residents. In addition to 3million square feet of office space and a Sheraton hotel, there is also 125,000 square feet of retail space in the Village Square.

The whole area has matured, Curtis says. Even the little twigs planted during construction are now trees.

Diverse community: Construction in the planned, mixed-use community began in 1997, the year after it was annexed into the city of Rockville.

The community has a civic board called the King Farm Citizens Assembly, and the Board of Trustees manages the community with a management staff employed by the Assembly. An activities director helps organize community events, including movies on the lawn in the summer, concerts and seasonal festivals.

Theres something for everyone, says Gail Sherman, president of the King Farm Citizens Assembly.

Residents like the mix of housing types, too, Sherman says.

See the original post:
Diverse community rises from agrarian past at Rockvilles King Farm

VOL. 8 | NO. 11 | Saturday, March 07, 2015

Retail development in the Memphis area is booming in what construction and retail officials describe as the most active period for retail construction since the recession, with everything from a massive outlet mall in Southaven to grocery stores and smaller, traditional retail centers going up.

Were seeing a lot of new retail construction and I think its just another sign of the economy getting stronger in general and of the dollars being spent, said Rusty Linkous, president of Linkous Construction Co. Retail is pretty strong right now.

The list of projects under construction now or in the pipeline for 2015 is extensive.

Crown Centre LLC, an affiliate of Fogelman Investment Co., is developing a high-end, 29,373-square-foot retail center at 6450 Poplar Ave., part of a wave of new retail development sweeping across the Memphis area.

(The Shopping Center Group)

Tanger Factory Outlets Inc. and Poag Shopping Centers will break ground March 13 on a 300,000-square-foot destination outlet mall in Southaven. A company affiliated with Robert F. Fogelman II has begun construction of a 29,000-square-foot retail center at 6450 Poplar Ave. in East Memphis. Construction of a new 50,000-square-foot Kroger on Union Avenue in Midtown is underway.

Work on the Highland Row development near the University of Memphis, which was sidelined by the recession and now includes 32,000 square feet of retail space, will begin this year. The Shops of Saddle Creek is undergoing a renovation and 20,000-square-foot expansion. Ikea is expected to begin construction this year on its store near Interstate 40 and Germantown Parkway. In Olive Branch, Michael Lightman Realty Co. has launched a 31,000-square-foot retail center on Goodman Road.

This is the longest list Ive seen in a few years, said Frank Dyer III of Loeb Realty Group.

The Memphis area is taking part in a broader national rebound in retail construction. Nearly 50 million square feet of retail space was delivered in the U.S. in 2014, the largest amount of retail development and redevelopment since 2010, according to research from Jones Lang LaSalle.

Original post:
Wave of New Retail Construction Boosts Contractors

VOL. 8 | NO. 11 | Saturday, March 07, 2015

Businesses looking for office space in Nashville are learning a painful lesson that homebuyers already know prices are high, and if you take time to shop around for a better deal, someone else is likely to snap up the property, leaving you out in the cold.

Even finding available office space to lease in the first place can be a challenge.

At least 1 million people are expected to move to the region during the next 20 years, making Nashville one of the 10 fastest-growing Metro areas in the country, according to Forbes.

That growth has led to a widely publicized shortfall of homes for sale, at least in the most desirable neighborhoods where buyers line up to make offers and homes often sell before they officially hit the market.

Brentwood: 4.9% Cool Springs: 6% Downtown: 11.1% Green Hills: 4.3% Music Row/West End: 2.4% Rivergate/Hendersonville: 1.8% Airport North: 7.5% Airport South: 9.8% MetroCenter: 10.4%

Source: Colliers International

With all the publicity about Nashville and (the regions) low inventory, they have to make up their mind quickly or theyre going to miss it, says Lawrence Lipman, who leads the Lipman Group Sothebys International Realty.

Less well-publicized is a looming shortfall of top-quality office space.

Thats putting pressure on businesses to sign leases quickly and forget about asking for concessions like discounts or cash for remodeling the space.

More here:
Space Race

Allendale, NJ (PRWEB) March 05, 2015

Henschel-Steinau, the leader in retail marketing solutions, will introduce LumaNEXT, a new and innovative illumination system designed specifically for retail shopping environments, at GlobalShop 2015. LumaNEXT is marketed exclusively by the HS Illumination division of Henschel-Steinau. Areas of the companys exhibit space will be outfitted with LumaNEXT ceiling, vertical banner and display luminaires, providing attendees a first-hand experience of the design, operation, and light quality of this exclusive system. A range of the companys proven retail marketing portfolio and innovative merchandising solutions also will be on display.

The LumaNEXT System LumaNEXT is a patent-pending, plug-and-play, low voltage LED illumination system that delivers value to retailers in multiple ways, including simplified installation and maintenance, improved lighting, energy efficiency, intelligent sensors for daylight harvesting, analytics and substantial savings. Centralized Power Stations connected to control devices that can be strategically located throughout a store to deliver 24 Volt DC current to as many as two-dozen system devices. These include overhead solid state lighting, vertical graphic banner luminaires, suspended illuminated signs, illuminated perimeter wall displays, track lighting, and other back-lit merchandising displays.

Led Illumination with an Important Difference All LED illumination systems are not created equal, comments Patty Pellegrin, Director of Marketing for Henschel-Steinau. LumaNEXT is the first low voltage illumination solution that requires no transformer or ballast at the fixture level, streamlining installation and significantly reducing the need for costly, periodic maintenance. Plus, the system features a future-proof open architecture that enables system expansion and software updates. When compared to other LED lighting solutions, LumaNEXT can reduce operating costs associated with lighting by 25% or more.

Superior Quality Light and a Much "Greener" Bottom Line LumaNEXT represents the highest quality engineering and construction in illumination. Troffers feature a proprietary diffusor lens, and special coatings by White Optics produce greater reflectivity to help create a pure, natural light for the shopping environment, which has been attributed to increased sales. LumaNEXT also reduces utility consumption by up to 75%, achieving substantially lower energy costs when compared to traditional lighting systems.

Solar Compatibility and Title 24 Compliant LumaNEXT is solar power compatible with an integrated sensor option available for daylight harvesting and energy conservation. Its lighting control devices, luminaires and system components fully comply with the applicable requirements of Title 24 Section 110.9 of the California Building Energy Efficiency Standards for Residential and Non-Residential Buildings.

Smart Analytics" for Optimum Performance HS Illumination recently integrated smart sensor technology for real-time actionable data reporting on the system and its performances from Enlighted, the worlds most advanced digital sensor and analytics platform for smarter buildings. With this addition, light intensity within departments can be controlled, ambient light and temperature can be measured, and fixture outages and abnormal spikes in energy consumption are reported. Retailers also have the ability to analyze consumer foot traffic and shopping patterns, while setting brightness and energy output based on time of day to reduce energy use and associated energy costs.

From the Industry Leader in Retail Marketing For over 55 years, Henschel-Steinau has successfully developed and introduced innovative solutions that improve both the shopper and retailer experience. Pellegrin comments, The introduction of LumaNEXT is a natural extension of our companys mission to create impactful solutions for our retailer partners. Lighting plays such an essential role in the retail environment. With LumaNEXT, we are bringing retailers another in-store solution that, like many Henschel-Steinau innovations, is designed to measurably improve performance and reduce costs, while increasing sales.

In addition to LumaNEXT, Henschel-Steinau will be featuring its proven, high-performance line of EZ retail solutions at GlobalShop this year.

EZ LOAD Patented Shelf Merchandiser System The EZ Load Shelf Management System is simple to install and operate, and dramatically reduces stocking time with a front lens mechanism that enables one-handed re-stocking. The award-winning system automatically faces product to the shelf front, while effectively maintaining side-to-side product positioning, and giving the appearance of an always stocked shelf. Its dividers and pushers move independently with easy lateral slide-click motion adjustments. The exclusive design also provides a natural deterrent to theft, as it prevents sweeping.

Continued here:
Henschel-Steinau to Unveil New Retail Lighting Solution at GlobalShop2015

Representatives behind a proposal to expand the South Bay Mall to include new housing, retail, and a movie theater are making the rounds at a series of community meetings in Dorchester. On Monday evening, they spoke to members of the Columbia-Savin Hill Civic Association at the Cristo Rey High School on Savin Hill Avenue.

Emphasizing that the plan is still in its early stages, Keith Hague and David Germakian of Edens, the company behind the proposed shopping center expansion, sought input and answered community questions regarding transit, traffic congestion, and pedestrian access.

The success of the development is really going to be the access for pedestrians, vehicular access, not impacting neighborhoods, Hague told the 70 members of the civic association at the meeting. The same concerns had been raised at a meeting last week with the Citizens Connect South Bay group. We dont have all the answers now, but we have a lot of thoughts and a team of people working on it.

Edens, the operator of the existing South Bay Mall, has proposed the construction of several six-story buildings with roughly 115,000 square feet of commercial and retail space, a movie theater, a hotel with up to 200 rooms, some 500 units of multifamily housing, and two parking garages, all marbled by new roadways, sidewalks, and open space.

The project, initially outlined in a letter of intent filed with the Boston Redevelopment Authority (BRA) on Feb. 11, would fill in a 10.2-acre parcel of land between South Bay, and Enterprise, Boston, and Howell streets that today consists of a concrete plant, vacant buildings, and surface parking lots.

Bruce Shatswell was one community member who raised concerns about transportation both within the proposed mix-use development, and to and from the shopping center.

Southampton Street is woefully dangerous, he said in referring to the street marking the malls northern boundary. Southamptons curb-cut into the shopping complex is bisected by an on-ramp to Interstate 93 south, making it a treacherous intersection for pedestrians.

You have an opportunity and I think the city and state really has the responsibility to make it transit-friendly. Dont just do sidewalks, said Shatswell.

Another association member asked about the nature of new retail stores, expressing a concern about more big-box stores coming in to the shopping plaza. Germakian said the company spends a lot of time and energy trying to cultivate innovative retail.

On the housing front, Hague said it was difficult to anticipate what a market rate would be for the 450 to 500 units of housing proposed because it is in a niche area. Theres really nothing around the area such as this.

The rest is here:
South Bay Mall owners make case for expansion

04.03.2015 / 12:52

---------------------------------------------------------------------

IMMOFINANZ Group has completed a further retail project in Poland: the Tarasy Zamkowe shopping center, which is located in the center of Lublin, was officially opened in a gala ceremony today. On 38,000 sqm of space, it provides a combination of shopping, entertainment, relaxation and leisure time activities - and all this with a balanced tenant and branch mix. The investment costs totalled approx. EUR 115 million.

"One of our current focal points for our development activities are retail projects in Poland. The opening of Tarasy Zamkowe not only sets a further milestone, it is also an excellent example of our business model - the real estate machine. Following the highly profitable sale of the Silesia City Center in Katowice during 2013, we have increased our retail space in Poland by more than 71,000 sqm. And further projects in our STOP.SHOP. and VIVO! brands are currently under construction or in preparation", commented Eduard Zehetner, CEO of IMMOFINANZ Group.

The opening ceremony for Tarasy Zamkowe was attended by representatives of IMMOFINANZ Group, the city government, the general contractor Warbud and the architecture firm Stelmach I Partnerzy.

Tarasy Zamkowe provides space for 150 retail companies, restaurants, a number of cafs and snack bars as well as parking for 1,400 cars on three levels. It can also be easily reached by public transportation or bicycle and even on foot. In addition to the 350,000 residents of Lublin, the catchment area covers roughly one million people.

Numerous well-known international and local retailers are represented in Tarasy Zamkowe, including the Inditex Group with all its brands (Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home), the LPP Group (Reserved, Cropp, House, Sinsay, Mohito, Home&You, Tab), H&M, Media Expert, Delikatesy Alma, Super-Pharm, Rossmann Premium, !con Fitness (managed by Holmes Place), CARRY and Swarovski.

Unique award for sustainable construction The design of Tarasy Zamkowe combines unique architecture with high ecological standards. The green areas on the building's roof are a special highlight: grassy fields, lots of plants, walkways and lookout points - the most spectacular vantage point gives visitors a unique view of the old city and the historical castle. Public areas at the corners of the shopping center provide quiet space and settings for events. This sustainable approach has been internationally recognised: in autumn 2014, Tarasy Zamkowe became the first shopping center in Poland to receive the "BREEAM Excellent certificate for the design stage".

On IMMOFINANZ Group IMMOFINANZ Group is one of the leading listed property companies in Europe. The company is included in the leading ATX index of the Vienna Stock Exchange and also trades on the Warsaw Stock Exchange. Since its founding in 1990, the company has compiled a high-quality property portfolio that now comprises more than 470 investment properties with a carrying amount of approx. EUR 6.8 billion. As a "real estate machine" the company concentrates on linking its three core business areas: the development of sustainable, specially designed prime properties in premium locations, the professional management of these properties and cycle-optimised sales. IMMOFINANZ Group concentrates its activities in the retail, office and logistics segments of eight regional core markets: Austria, Germany, Czech Republic, Slovakia, Hungary, Romania, Poland and Russia. Further information under: http://www.immofinanz.com / http://blog.immofinanz.com / http://properties.immofinanz.com

For additional information contact:

Read the original:
DGAP-News: IMMOFINANZ Group opens Tarasy Zamkowe shopping center in Lublin

Crews began tearing down the south end of the Wilmot Plaza shopping center last week. It was once home to R&S Mattress, Christies Appliance and Brawleys Restaurant.

The property is being demolished to make way for a 14,000-square-foot building that will house up to four retail tenants, said Alan Tanner, retail principal with plaza owner Bourn Cos.

We werent sure if we were going to remodel the premises or take it, raze it and reconstruct it, Tanner said. In the long run, it made more sense to demo the building and rebuild.

Bourn Cos. acquired Wilmot Plaza, on the northeast corner of Wilmot Road and East Broadway, in 2013 with plans to redevelop the 10-acre property with more than 140,000 square feet of retail space.

In June of 2014, crews began tearing down the northern half of the center, including the old Popular Outdoor Outfitters.

In November, Bourn announced that Dicks Sporting Goods would serve as the plaza anchor with a brand-new 50,000-square-foot facility.

Tanner said construction is already underway on the future Dicks. The goal is to hand it over to the Pennsylvania-based chain in August.

The three remaining plaza businesses, T.J. Maxx, Burger King and Good Ole Toms, will remain open during construction.

Tanner said T.J. Maxx is in the process of receiving a new exterior storefront.

Burger Kings current building will be torn down, but not before a new BK is constructed just north of the old location, on the southwest corner of the plaza.

View post:
Part of Wilmot Plaza demolished for new tenants

Controversial changes to a retail development plan on North Bechtle Avenue have been unanimously approved by Springfield city commissioners.

The undeveloped land north of Walmart could see the addition of up to nine new stores, including two large anchor stores, expanding the already busy retail area. Construction could begin this spring.

Two weeks ago, residents spoke out against the plan to add more retail to the popular Springfield shopping area, fearing traffic and trash may overwhelm their neighborhood on nearby St. Paris Pike and Home Road.

No one spoke in opposition at a commission meeting Tuesday evening.

The original plan for the site was approved in 2006, meaning development was planned regardless of whether the changes were approved or not, said Mayor Warren Copeland.

Its not like were going back to nothing if we vote against it, Copeland said.

Two stores have agreed in principle to build at the new development, while a deal with another is close, according to Jim Peifer, the developers attorney. One of the possible tenants is a big box store, but no more information has been released.

One store rumored to relocate to the area is Hobby Lobby, which is currently located in the Springfield Plaza Shopping Center, 1390 Upper Valley Pike. However, Hobby Lobby spokesman Vince Parker said theyre very happy with their current location.

Its strictly rumor, Parker said. Were not moving that store and have no plans to move that store.

Development of the original 2006 plan was slowed by the recession.

More here:
Commissioners approve North Bechtle retail plan