For nearly 20 business owners finding a place to set up shop in downtown Traverse City means waiting because there is no space available. /upnorthlive.com photo

TRAVERSE CITY -- For nearly 20 business owners finding a place to set up shop in downtown Traverse City means waiting because there is no space available. Downtown leaders say the demand is at a ten year high.

Downtown leaders say it's a good problem to have and empty spaces could soon be a construction site to add more square footage to downtown.

You always need to have those new things, those new businesses, those new places to go to keep it fresh and exciting, said Rob Bacigalupi, Downtown Development Authority Executive Director.

Finding a way into the downtown Traverse City marketplace is proving to be a challenge for nearly 20 businesses.

Anybody that is looking to locate a business downtown or even those who are already downtown but want to expand have a very difficult time finding space.

Aside from the newly opened Franklin restaurant, downtown retail space hasn't been added in several years.

The demand has risen after a short slump during the 2008 recession.

It actually speaks to how attractive and viable downtown is for shoppers already people already want to shop here and therefore the shops want to be here.

Right now the vacancy rate is at 3.2 percent. Downtown leaders say they prefer to be anywhere from four to eight percent.

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Downtown Traverse City short on space for incoming businesses

$5B project woos investors to Amman May 28, 2014 12:30 AM

BEIRUT: Next month, Amman will witness the grand opening of The Boulevard, a $423 million project located at the heart of Abdali, the citys new downtown district.

The Abdali project, itself estimated to be worth over $5 billion, will be inaugurated on June 11 by Jordanian King Abdullah II and is the largest mixed-use development project ever constructed in the heart of the Jordanian capital. It will cover 384,000 square meters of land and comprise a total area of over 1.8 million square meters.

Abdali constitutes a promising investment environment that will attract many regional and international businesses that consider the kingdom as a suitable place for their investments, combined with a contemporary lifestyle, in one prestigious address, George Amireh, CEO of the Abdali Investment and Development PSC, which is developing the project, said during a press tour earlier this month.

Amirehs company is a joint venture between the government-owned real estate developer National Resources and Development Corporation and Horizon International for Development Ltd. Co., a construction conglomerate owned by Lebanese businessman Bahaa Hariri. The joint venture is also in partnership with the United Real Estate Company, which is part of the Kuwait Projects Company.

The Boulevard, a 370-meter-long and 21-meter-wide outdoor pedestrian spine bordered by 12 buildings, consists of retails outlets, luxurious serviced apartments, scenic rooftops and office spaces over a total land area of 26,539 square meters and a built-up area of 226,000 square meters.

The Boulevard is a clear example of the urban development witnessed in Jordan. It is a distinctive destination for business, high-end residences, tourism, commerce and entertainment. ... The Boulevard will strengthen the position of Amman and will put the city on equal footing with other global centers, said Taher al-Jaghbir, CEO of Abdali Boulevard Company.

The overall Abdali project is divided into two phases. Phase I is a planned pedestrian-oriented mixed-use community consisting of residential apartments, office spaces, retail outlets and hotels over a built-up area of 1,000,000 square meters.

It comprises buildings that are an average 30 meters high, in addition to retail space of 22,000 square meters, leasable rooftop areas and terraces of 18,000 square meters, 120 retail outlets, 400 luxurious serviced apartments, 30,000 square meters of offices and 1,700 underground parking spaces.

Phase II will feature a central dynamic park across 30,000 square meters of land, serving as a focal theme for mainly residential development as well as office, hotel and retail developments over 800,000 square meters.

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$5B project woos investors to Amman

Tuesday, May 27, 2014, 11:39am

Northland Investment Corp. of Newton has closed on $98 million in construction financing for Moody & Main On The Common, a mixed-use development in downtown Waltham.

The development will consist ofthree five-story buildings on a 4.5-acre site. Once complete in summer 2016, it will include 269 apartments, 27 of which are affordable, 27,595 square feet of retail space, a 300-car parking garage and 92 surface parking spaces. The first phase of apartments will be ready for occupancy in summer 2015.

"Moody & Main is a true transit-oriented development that will offer residents a 25-minute public transit commute to downtown Boston from their front door, while providing convenient walking access to restaurants, retail and grocery stores," Steven Rosenthal, president and CEO of Northland, said in a statement.

PCCP LLC provided the loan for the project, and Colliers International acted as the mortgage broker. ADD Inc. is the architect, and the general contractor is Erland Construction. CBRE is the exclusive leasing agent for the available retail space.

Moody & Main On The Common is one block from the Waltham MBTA commuter rail station and the Charles River.

Buildings will feature masonry facades with large windows. The urban street edge will have wide sidewalks, street trees and benches and a mini-park. The interior portion of the site will feature landscaped pathways surrounding the surface parking. Sustainable features include Energy Star appliances, low flow fixtures and single stream recycling.

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Northland Closes On Construction Financing For Waltham Project

A tucked-away retail outlet west of Highway 29 is about to undergo a significant makeover, adding an almost 5,000-square-foot addition to house up to four retailers or businesses.

The project, known as Solano Plaza, will include a 4,800-square-foot, single-story building facing an existing strip of shops home to a furniture store, a nail salon and a barber, among others.

Owned by longtime Napans Gemy and Betsy DAdamo, the proposed building was designed by local architect James Jeffrey. It will sit atop a former gas station site that has been cleansed of toxics, said owner representative Tina DAdamo.

The project would likely have been started sooner, except for a corner sliver of excess right-of-way area that needed to be conveyed to the DAdamos by the city. The city agreed to relinquish the section of corner that was reserved many years ago for the possibility that an overpass might be created from West to East Pueblo over the highway.

The proposed project will include the new retail space, landscaping, trees, new signage and other improvements. We want it to look uniform and blend in with the existing center, Tina D'Adamo said.

The DAdamos have owned the parcel for almost 40 years, said Tina DAdamo. It was originally home to a gas and service station. For many years the family operated the Shell Pueblo Tire Service at the site.

A commercial strip built many years ago at the back of the corner was remodeled two to three years ago said DAdamo. That section, or Phase I, is almost fully leased and includes several longtime tenants, she noted.

DAdamo said the family was flexible about potential tenants. Because the center is off the beaten path," she thought neighborhood-serving businesses would be a most likely fit. She suggested light retail, perhaps a caf, dentist or doctor office, or even a small market.

I would hope we could get something that caters to the surrounding neighborhoods, said DAdamo.

Construction could begin next spring, she estimated.

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New retail space planned for Solano Avenue

Sellers See Action From Banks, Revived CMBS Lenders, Life Companies and Private Buyers -- But Shopping Center Quality, Performance Remains A Key Factor

Just as in the 'old days,' ICSC reportedly sold out the entire financial and properties services pavilions, with waiting lists for each. During every panel session, executives marveled at the abundance of financing available to landlords, owners and buyers, with many non-traditional capital sources offering a broad array of options on both the debt and equity sides.

As Marcus & Millichap investment market guru Hessam Nadji noted during the firm's popular Retail Trends 2014 presentation duirng the conference, retail sales volume is now 14% greater than even pre-recession peaks in 2007. M&M's recent retail sentiment survey detected rising confidence among investors, said Nadji, who urged buyers not to "overthink" -- to pull the trigger on deals if they make sense.

Malls and strip centers alike are seeing continued improvement in pricing power, as evidenced in rising re-leasing spreads and attractive buyer capitalization rates. REITs are recycling capital while private buyers are showing stronger demand for assets, a theme echoed by REIT CEOs during quarterly meetings in the days leading up to the Las Vegas retail conference.

"There's definitely more buyers today than a year ago, there's more buyers today than three months ago and their appetites are much bigger than they were three months ago or a year ago," noted Macerich CEO Arthur M. Coppola.

But lenders haven't turned open the faucets for just any borrower or project. Non-core properties and ground-up development project are still enduring vigorous underwriting reviews by still conservative financial institutions.

"Demand for loans seems to be strong. If you're not looking to be an aggressive borrower, there's plenty of capital, said CFO Michael Berman of General Growth Properties, which maintained a large presence in the RECon exhibit hall.

Properties priced at over $300 per square foot are a lot easier to finance and can tap the now-booming CMBS market, but properties below that price per pound need banks to step up for financing, Michael Glimcher acknowledged. The good news is that the bank financing is back, given the right institutional buyer who can write an equity check.

The likely buyer pool for retail assets marketed for sale by CBL & Associates Properties is primarily private rather than public companies, and those buyers have teamed up with private equity or international funding sources, said CEO Stephen D. Lebovitz.

Macerich saw a "pretty competitive bidding process" for its Biltmore Fashion Park shopping center in Phoenix led interestingly by the life companies seeking A quality space, who were outbidding CMBS lenders by 10 to 20 basis points, armed with very competitive rates for 10-year money in the low 4%s, CFO Thomas E. O'Hern said.

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Winners and Losers Emerge as Debt, Equity Capital Flowing Back Into Retail Real Estate

This is according to the latest data on the Bangkok retail property market from the Research Department of Colliers International Thailand.

Only 6,500 square metres of new retail projects were completed and opened in the first three months of this year, while more than 40,000 square metres were postponed to the current quarter, said Surachet Kongcheep, associate director of the department.

He said some retail centres could not be completed as expected in the first quarter, especially in the City area of Bangkok.

Meanwhile, the total retail supply in the Suburban Bangkok area was the largest, with around 3.5 million square metres or approximately 53 per cent of the total supply of Bangkok and surrounding areas.

This was due to the huge number of residential projects, which create the real demand for retail centres such as community malls and large-scale shopping malls in the Suburban Bangkok area.

Some 866,530 square metres of future supply is under construction and expected to be completed this year, with 559,140 square metres at shopping malls and 269,400 square metres at community malls.

Most community malls scheduled to be completed in 2014 are located in the Suburban Bangkok area, although some community malls in Bangkok are not successful and cannot maintain their initial popularity, he said.

The occupancy rates in all categories are above 95 per cent, except for supporting retail, which weighed in at 90 per cent.

Surachet explained that most retail centres in Bangkok had achieved a high take-up rate, especially those in the City area.

During the past one to two years, many international brands have been looking to open shops in Thailand, especially at shopping malls in Bangkok. In addition, many local Thai brands also continue to open shops in all areas of the country.

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Q1 retail property demand still strong despite political woes

LAS VEGASWhen is the last time you stepped into a brand new shopping mall? Its been nearly a century since the first shopping mall opened in the United StatesU.S. construction deliveries of retail assets in 2013 were 76.6 percent below the high levels of 2008, and Q1 2014 deliveries for major markets were only 9.8 million.

The lack of new supply coupled with fluctuating consumer confidence is pushing retail real estate owners to strategically evaluate their current assets. With limited supply, getting the environment right in existing assets has become crucial, and its what really creates a resilient retail center. It is the basic building block of the physical offering, and cant be left to chance anymore, JLL Retails Karen Raquet told us.

According to JLLs Retail Property Management and Leasing experts, there are three key approaches retail owners can implement to boost their current assets:

1. Identify and Attract the Right Retailers:Looking holistically at the long-term viability of a centerthree to six years down the roadrather than filling vacant holes as they occur can make all the difference. Securing the right retailers for a particular space and center is crucial, because regardless of how attractive, stimulating, well-located and connected a retail site is, it will only attract visitors if it has a platform that meets or exceeds the demanding requirements of the local consumer.

JLLs Director of Leasing Kimli Cross told us, The shopping environment covers more than just the physical space, although this is extremely important, it is about how a space makes you feel as a visitor. Is it uplifting, entertaining, stimulating?

2. Engage with the Local Community: A retail center does not, and cannot exist in a bubbleits an intrinsic part of the community in which it sits, be it a suburban town, urban city, or even an airport. Building and promoting a strong identity for retail centers has become essential in an environment where competition is rife and where the shelf life of products and services appears to be diminishing. By giving back to the community, through the provision of free space for school art projects or charity events, retail centers can help to embed themselves into the heart of a community.

3. Detail Capital Improvements: Following the economic downturn, capital expenditure renovation work slowed substantially in the retail sector. Today, upgrades or additions of any size that restore and renovate a property can drive returns, and help a center overtake its competitive set. The biggest conversions that are likely to take place in the coming year will revolve around remerchandising and retrofitting space, including cosmetic remodels, and improvements to lighting, water and electric efficiency and consumption.

When these single strategies stand alone, they can in fact boost a propertys shopper appeal, cash flow and positively impact sales in the near term; however, when they are combined, they can truly transform a retail space into a place that both creates and responds to demand.

Next: The Ongoing Retail Evolution

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Can Retail Withstand the Test of Time?

Downtown Summerlin is among the largest US retail projects now under way.

NEW YORK CITYThe Americas contain by far the largest share of shopping center space at north of 2.25 billion square feet, with the US alone accounting for more than two billion square feet of the total. That preeminent position wont change by the end of 2016, although China will add more than four times as much new retail space as the US over the next two years: 161.3 million square feet compared to 36.7 million feet domestically, even if the Americas have more projects under construction.

That Asia should lead the way with retail development, even as economic growth in the region slows slightly, bodes well for the global recovery generally. So says Cushman & Wakefield in a report issued Monday to coincide with ICSC RECon.

Retail real estate development is often seen as barometer as the global economy shifts from recovery to growth, says Matt Winn, global retail COO and head of retail in the Americas.While the South American economies have slowed, Brazil, Colombia, Peru and Chile will all see additions to their supply in the next few years.

Winn adds that even in the US, where the ratio of shopping center space per capita is higher than everywhere else in the world, there are projects of more than 400,000 square feet apiece under way. Among the largest of these is the retail component of the Howard Hughes Corp.s Downtown Summerlin master-planned development, scheduled to open in October in a Las Vegas neighborhood not all that far from where the retail industry has gathered for RECon.

C&W's Matt Winn (at left), seen here at ICSC RECon with GlobeSt.com's Natalie Dolce, notes that development signals an economic shift "from recovery to growth."

An encouraging backdrop for development is improving global economic fundamentals and increased consumer confidence, says C&W. Global GDP is forecast to grow at 3.4% this year, the highest rate since 2011.

C&W notes that household spending will play a significant role in the realization of GDP gains, with spending in the US, the euro zone, and China leading the way. Although its growth has eased in recent years, China is still expected to record a global best 4.5% rise in consumer spending in 2014, a number that will accelerate to 5.1% in 2015.

More than 1,650 new shopping centers were delivered between 2012 and 2013 across the Americas, Europe and Asia. This represents about 210 million square feet of gross leasable area, or about 7% of overall existing inventory. The US, Russia, Brazil, Mexico, India and China drove the majority of the newly added space.

India and China will continue to loom large in development this year, with Asia accounting for well over half the 14 global development pipeline of 125.6 million square feet, to the point where James Hawkey, C&Ws retail services leader for the Asia-Pacific region, warns of oversupply in some Chinese markets. Even so, the worlds most populous continent will end 16 with inventory of about 450 million square feet, a fraction of the 2.3 billion square feet the Americas will contain by then.

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Strong Retail Pipeline Signals Global Shift to Growth

The look, feel, size and culinary offerings of the Cantina Aspen restaurant could change dramatically before the summer tourist season is underway.

The owners are awaiting a city building permit that would allow the large dining area at the south end of the restaurant space to be walled off from the middle dining area. That space, featuring large windows facing South Mill Street, would revert back to the building owner. Commercial real estate broker Karen Setterfield, of Setterfield & Bright, already has listed the 1,200-square-foot area as future retail property.

Setterfield said Sunday that plans call for two separate retail spaces of 600 square feet. The listing asks for $140 per square foot, which amounts to about $7,000 per month, a price that does not include insurance, utilities, taxes and other costs. A potential tenant could lease both spaces to house a larger retail operation, she said.

The Cantina Aspen bar and restaurant operation will change significantly, according to managing owner Aidan Wynn. Plans call for retiring the Tex-Mex concept in favor of modern Mexican fare, Wynn said.

Were going to offer a smarter product, better service, better quality food and an overall new experience, Wynn said. The Cantina has been The Cantina for 28 years and its kind of had its time. We still want to be a locals place. I was born and raised here.

As one employee of the restaurant told The Aspen Times informally, We want to class up the place. The popular restaurant, prominently positioned at the corner of Mill and Main Streets, will be renamed El Rincon, which translated from Spanish to English means The Corner, Wynn said.

With the bar area and outdoor patio seating as well as the middle dining area, the restaurant simply doesnt need the large dining room, he said. The entire restaurant typically only fills up a few times a year during special events, such as the Super Bowl or New Years Eve.

Were going to make a smaller, more quaint restaurant, Wynn said. Itll be easier to control the quality. Were going to make some subtle menu changes and a slight redevelopment of the bar area and a little remodel of the dining room.

The cuisine will still be Mexican, but in a different way.

Mexican food on its head, I guess you could call it, Wynn said. Well still have some of traditional Tex-Mex favorites, but we want to try things like duck carnitas, goat stew, pan-roasted rock cod with a chicken-mole sauce, for instance.

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Big changes in store for Cantina Aspen restaurant

Village of Shorewood officials will consider a proposal to provide $13.9 million in tax incremental financing for a proposed Metro Market, apartment and additional retail space development on Oakland Avenue.

Fox Point-based real estate development firm General Capital Group plans to build a mixed-use development with an 80,000-square-foot Roundy's Metro Market grocery store, 80 upscale apartments and 15,000 square feet of additional retail space. The development is planned for two blocks on the west side of Oakland Avenue between Kenmore Place and Olive Street. It would replace the current Pick 'n Save grocery store there and the vacant former Schwartz book store and Walgreens buildings.

The project would also include a a 350 stall parking garage for the Metro Market and other retail customers, employees and public parking for the community.

Village officials are considering a plan to create a TIF district for the project that would provide a $6 million parking structure grant and a $6.5 million loan to General Capital for construction of the Metro Market. The TIF would also provide $1.445 million to cover village costs for financing and professional services.

When a TIF district is created, property tax revenes that go from the district to local units of government are frozen. As property values in the district rise, the additional tax revenue is used to pay for the TIF expenses. Once those are paid for the additional tax revenues then go to local units of government.

Shorewood officials estimate that it would take 15 years to pay for the costs of the proposed TIF for the Metro Market project. The total net village investment for the proposed project would be approximately $6,695,000.

"The proposed Metro Market addition is consistent with our vision of what we want Shorewood's business district to accomplish in order to enhance the vitality of our village," said Village President Guy Johnson. "This is a bold project that is benefiting from the helpful ideas coming from many different citizen groups and individuals."

A Joint Review Board meeting and public hearing will be held on the TIF proposal for the development at 3:30 p.m. and 6:00 p.m. respectively on Monday, June 2 at Shorewood Village Hall.

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Shorewood considers $12.5 million in TIF for Metro Market development