Features

By Kirk Cypel, chief development officer, CBG Real Estate Americans are still spending, but the headline numbers tell only part of the story. Federal economic data shows that the economy grew at a 3.4 percent annualized rate in the third quarter; September retail sales rose 6.3 percent from a year earlier, and the unemployment rate was at 4.2 percent. Yet inflation-adjusted disposable income fell 0.3 percent in September, the savings rate slipped to 3.8 percent and real spending was essentially flat. Consumers are spending more dollars without necessarily getting more stuff. Higher-income households account for a disproportionate share of discretionary purchases, while middle- and lower-income consumers increasingly focus on necessities, convenience and value. Even in the same trade area, some retailers thrive while others struggle. As such, the logical conclusion is that owning a shopping center is less about filling boxes than assembling a tenant mix that meets consumer needs and encourages shoppers to return. Traditionally, three retail categories drive shopping centers: general merchandise, grocery and restaurants. Other services may fill space, but most are destinations for a specific errand or appointment, with less spillover for neighboring stores. A good tenant mix needs both dependable occupants and businesses that help …

By Justin Elder, President, Elder-Jones, Inc., and President, Retail Contractors Association Whether a retailer is opening a new location, refreshing an operating store, converting an acquired property or rolling out a new prototype, construction comes with variables. Permits move at different speeds. Existing conditions do not always match record drawings. Electrical gear, HVAC equipment, storefront systems and owner-furnished fixtures may carry long lead times. Late design or merchandising changes can ripple through procurement, sequencing and store-opening plans. Those conditions may be unavoidable. Cost and schedule surprises often are not. The difference is disciplined preconstruction, clear decision rights, reliable project controls and a contractor who understands that the job site is also a retail environment. During a roundtable discussion at a recent RCA Annual Conference, experienced retail contractors shared lessons from decades of work. Their central message was straightforward: strong relationships matter, but the best partnerships turn trust into a repeatable operating process. Start with a technically complete preconstruction process The most effective time to solve a construction problem is before crews mobilize. Retailers should bring the contractor into the process early enough to test the drawings against field conditions, procurement realities, operating requirements and the proposed schedule. For remodels and …