Douglas Jerum, Ferrar Jerum International LLC
A trend in retail activity in Western New York and the Finger Lakes Region over the past six to 12 months has been the announcement or arrival of a number of high-end or specialty retailers and restaurants. Although traditionally these retailers are more selective about the markets they enter, as they continue to grow nationally they have to expand the list of potential markets they will consider. Some of them find that the Buffalo and Rochester metropolitan areas are markets in which high-end or specialty retailers or restaurants can thrive, particularly when Upstate New York’s lower occupancy costs and lighter competition are sufficient to offset potentially lower unit volumes.
Whole Foods’ much-anticipated Western New York debut will be this summer in the Northtown redevelopment project by W.S. Development in Amherst. Whole Foods has also signed a lease in Brighton, a suburb of Rochester, for a 50,000-square-foot store at Palazzo Plaza, a proposed 90,000-square-foot shopping center on Monroe Avenue at Interstate 590. The project, being developed by the Daniele Family Companies, is currently making its way through the entitlement process.
In a sign of the renaissance in progress in both Downtown Buffalo and Downtown Rochester, the first-ever national brand polished steakhouse is set to open a location in each market. Morton’s, The Steakhouse, will replace E.B. Green Steakhouse at the Hyatt Regency Buffalo this summer. Morton’s will also open in September as the signature restaurant of the newly renovated Hyatt Regency Rochester, which was acquired in fall 2016 by Christa-Morgan Development.
Outdoor gear and clothing co-op REI is completing construction of its first location in the region, following the opening of Costco in 2015, at the CityGate project being developed by Anthony J. Costello and Son Development in Rochester. REI plans to open in September. Meanwhile, another storied outdoor gear and clothing company makes its Buffalo debut in the Northtown development in Amherst. L.L. Bean has signed a lease for a 15,500-square-foot location in the project. The opening date had not been announced at press time.
The influx of coveted retailers is certainly not limited to the downtowns or open-air centers. The dominant malls in both markets have announced enhancements of their tenant rosters as well. At the Pyramid-owned Galleria Mall in Cheektowaga, fast fashion juggernaut Zara will open a two-level 30,309-square-foot store, and Lush Cosmetics, while not new to Buffalo, will undergo a major renovation that will see it triple its square footage at the mall. Over in Rochester, in the far eastern suburb of Victor, New York, Wilmorite is adding the region’s first Oakley store at 2,100 square feet, a 5,000 square foot Soft Surroundings and the first BoxLunch in Upstate New York, which will occupy 1,800 square feet. In addition, Tesla will add eight Supercharger stations in the parking field near the main entrance of the mall.
The region is welcoming Chik-fil-a, a high-quality though not high-end restaurant. The much-coveted chicken chain has confirmed its arrival in Rochester suburb of Greece, across from the Mall at Greece Ridge Center, and in Cheektowaga at the site of the recently closed Famous Dave’s BBQ restaurant on Walden Avenue.
— By Douglas Jerum, prinicpal, Ferrara Jerum International LLC. This article first appeared in the July 2017 issue of Northeast Real Estate Business magazine.