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 …
Todd Siegel, vice president of commercial investments at Passco, doesn’t believe you have to be on the cutting edge of every retail trend to be successful nowadays. He does, however, believe owners need to remain intimately involved with their shoppers. This is particularly true in today’s changing retail landscape where consumer tastes are always evolving and what works for one generation of shopper may not work for another. Rather than target Millennials, for example, Siegel suggests taking a broader approach to consumers and their buying habits. That starts with making …
Phil Voorhees, executive vice president at CBRE, believes the West’s retail investment market is performing well following a slowdown that culminated with the 2016 holiday season. Though investors may not be on a buying spree at the moment, many are focused on asset preservation. Acquisition opportunities remain in secondary and tertiary markets, along with non-core properties that are lacking a grocery anchor. There is some trepidation from buyers that we are long into this real estate cycle, but deals are still getting done and lenders are still willing to lend. …
With a population of 2.1 million, San Bernardino County is upping its retail offerings to keep pace with its residential growth. That growth includes more than 100,000 housing units planned for the region to meet the demands of young families and individuals seeking an affordable quality Southern California lifestyle. Housing activity is encouraging new retail such as High Desert Gateway West in Hesperia, as well as Rialto Marketplace and Rialto Renaissance in Rialto to name a few new developments. Elisa Laurel, economic development coordinator for San Bernardino County, cites a …