Downtown Centers, Anchor Leasing Adds up to Winning Formula

New Centers Underway

Five significant retail sites are either recently opened, under construction or nearing approval to initiate development.

McHenry Row, positioned adjacent to the headquarters of the rapidly expanding Under Armour, is open and features a Harris Teeter grocery store. Baltimore City will also welcome a premier power center in 2013, as well as Canton Crossing, a 320,000-square-foot Harris Teeter- and Target-anchored center. This project is located east of the Inner Harbor on Boston Street and will be home to fast-casual restaurants and soft good retailers such as DSW, Michaels, Loft, Five Below, Ulta, Red Robin, Jimmy John’s and Chick-fil-A.

In 2015, Baltimoreans on the north side of the city will begin shopping in the redeveloped Rotunda; D.C.-based Mom’s Organic Market is rumored to be the lead anchor. This renovation was spurred by the relocation of Giant Food to a larger footprint in the former Super Fresh at Green Spring Tower Square.

Whole Foods is making whispers about expanding its current Harbor­East location, which has been operating for more than a decade. Harbor­East remains the $1 billion crown jewel of the downtown market, comprising luxurious hotels, Class A office and upscale residential towers, with destination shops such as Anthropologie, J. Crew, Under Armour and Lululemon Athletica. North of the city’s core, the proposed 300,000-square-foot 25th Street Station is inching closer to becoming a reality, with Walmart leading the way to breathe new life into a former automobile dealership.

Suburban Activity Trends Up

The strength of the housing market has historically driven retail activity and residential is anticipated to contribute to the success of two existing centers. In Baltimore County, the Wegmans-anchored Hunt Valley Towne Centre is set to welcome a 400-unit apartment complex atop a former Walmart. Similarly, 400 units are coming to Boulevard at Box Hill, a 500,000-square-foot shopping destination featuring Wegmans and JC Penney in Harford County.

In Owings Mills, three significant developments are jockeying for position. Redevelopment plans by Kimco Realty and General Growth Properties have been placed on hold for Owings Mills Mall, until more clarity is achieved on the proposed Wegmans-anchored Foundry Row development two miles away. In the middle of these two proposed sites is Metro Centre at Owings Mills, the first transit-oriented development in the suburban region featuring more than 2 million square feet of office space and 300,000 square feet of retail. The first phase, containing a mix of apartments and retail, is underway.

Since arriving in town eight years ago, Wegmans continues to function as the impetus for several major developments. As Wegmans alters shopping patterns, its competitors continue to expand in the region. The aforementioned presence of Harris Teeter within two projects in Baltimore City has contributed greatly to the leasing success of Canton Crossing and McHenry Row, and this extends to the grocery store’s selection of Turf Valley Towne Centre in the affluent Howard County.

Other notable recent grocery store transactions include Price Rite at Mount Clare Junction in Baltimore; Redner’s Warehouse Markets at Eastpoint Shopping Center in Dundalk; Shop Rite at Parkway Crossing in Parkville; Giant Food at Parkville Shopping Center in Parkville; Giant Food at Perry Hall Centre in Perry Hall; Fresh Market at Dulaney Plaza Shopping Center in Towson; Weis at Towson Marketplace in Towson; and Weis at Security Square Shopping Center in Woodlawn. And Walmart remains active and is making significant progress in its exercise to convert all of its Baltimore metro area stores into superstore formats, through expansion or the relocation.

— Michael Patz, principal, and Ryan Minnehan, associate, with KLNB Retail