It used to be enough for a shopping center to house the lead grocer in a trade area, or at least the closest grocer for the majority of residents. Not so anymore, thanks to the internet and increased competition from additional shopping centers and grocer entries. That’s why Bob Myers, COO of Phillips Edison & Company, believes landlords and tenants need to do more to differentiate. That starts with emphasizing their value add. Amenities like Kroger Fuel, resources like dedicated parking and apps that provide buy online, pick up in …
Sandy Sigal, president and CEO of NewMark Merrill, may have built his company in the physical world of real estate, but he’s keenly aware the lines between online and brick and mortar are blurring. In fact, he asserts that the line is often non-existent for the consumer nowadays. That’s because technology has armed shoppers with the ability to shop how, when and where they choose. Retail companies planning to be around for the long haul are doing the same by investing in their non-core counterpart to ensure the physical and …
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Faris Lee: Retail is ‘Running on All Cylinders’ As the Fed Holds Rates Steady
It’s been a rollercoaster ride for retail, but Rick Chichester, president and CEO of Faris Lee, believes it’s smooth sailing ahead through at least the remainder of 2019, if not longer. This sense of security is largely due to the Fed’s decision to hold interest rates steady after the market reacted negatively to the four increases in 2018. This clarity has also brought renewed optimism and elevated consumer confidence to the market, something Chichester wouldn’t have predicted as little as five months ago. All of this information has given …
Diversification is a solid investment strategy in any market — and is perhaps more important than ever in today’s market. At least when it comes to the physical retail environment. Simon Hartzell, director of new offices for NAI Global, knows this to be true, which is why he has internalized this strategy. NAI Global maintains a macro presence but is focused on the micro-economies. The company is looking to grow its presence in often-overlooked secondary and tertiary markets where brokers and clients can maintain a competitive advantage. Hartzell also sees …
Retail vacancies are not a good thing — unless you’re in the middle of a retail renaissance with a number of forward-thinking tenants ready to take that space. So says Scott Holmes, national director of retail for Marcus & Millichap, who sees opportunities in these empty spaces today. First, there are the familiar tenants that are expanding. These include junior anchors like TJ Maxx, Ross and Burlington. Then, there are the newly emerging tenants, including the previously online-only concepts that are expanding into brick-and-mortar. Holmes has tracked 850 digitally native …
Jimmy Slusher, vice president of National Retail Partners – West at CBRE, acknowledges transaction volume is down compared to previous quarters, but this is not a trend he expects will continue. Slusher witnessed a barrage of activity at ICSC RECon, which supports his prediction that transaction volume will escalate in the second half of 2019. That’s because many investors are eager to deploy capital if they can find good-quality, grocery-anchored shopping centers, which are in demand at the moment. This level of interest has caused cap rates to continue to …
The City of Moreno Valley, just east of Riverside, Calif., in Southern California’s Inland Empire submarket, has been growing rapidly and will continue to do so. Moreno Valley’s population has consistently grown by 5 percent every year, according to Melissa McClain, the city’s management assistant of economic development. There are more than 7,000 single-family and multifamily homes in the current pipeline — and those residents will soon be seeking out additional retail options. A few of the city’s premier shopping centers have changed hands recently, allowing these properties to undergo …
Jeffrey S. Edison, Chairman and CEO of Phillips Edison & Company (PECO), knows sustainability will play a large role in the operation, development, design and longevity of today’s shopping centers. With that in mind, PECO has developed a number of programs and initiatives that target the three R’s: recycle, reduce, reuse. What are PECO’s sustainability goals? Edison: Our company is committed to becoming an industry leader in energy efficiency, alternative power sources, sustainable design, recycling and other initiatives that will help Phillips Edison preserve and protect the environment. We want …
By Austin Blodgett and Eric Wohl, Hanley Investment Group The professional car wash industry is more than 100 years old. Yet, the category has only recently picked up steam as a viable alternative to traditional net leased retail properties for private investors. Savvy private investors in today’s complex real estate market are following in the footsteps of what some of the larger REITs are looking to acquire. Namely, single-tenant express car washes. Unlike a McDonald’s or a Starbucks, net leased car wash properties are still a relatively new category for …
The great paradox of the real estate business is that, on one hand, it’s the single largest asset class on the planet with a global estimate of $228 trillion, and it generates tremendous amounts of operating, financial and market-level data. On the other hand, real estate is an industry where too much of the decision-making process is done by gut, too much of the reporting process is done by spreadsheet and too few of the recurring processes leverage automation. The result is an industry that too often defaults to throwing …