It’s too early to tell the impact of the new federal tax law on retail here in New Jersey, or how things might change now that we have a new governor. But one can place a sizable bet, literally, on the fact that medical marijuana dispensaries now given the go-ahead here will lead to recreational use, and that sports betting in New Jersey is going to also be a hit. Betting on Jersey’s retail sector is a great wager too. North Jersey’s top markets — Paramus, Wayne, Woodbridge, Bridgewater and Princeton — are all in great shape. Vacancy rates are low and rents are stable. Although the area was hit hard dur- ing the financial crisis and onetime retail juggernauts such as A&P and Sports Authority had to shutter their doors, much of that space was redeveloped. The space vacated by retailers due to the big impact of the Internet — Toys ‘R Us was stung badly by e-commerce, for example — has quickly been absorbed. Opportunity is at such a premium, it’s tough to find a steal at any of the area’s major regional malls or power centers, or the other desirable retail corridors for that matter. North Jersey retail is that …
If we had to sum up the 2018 Atlanta retail environment with a single word, it would be “change.” Atlanta’s builders have turned away from the traditional suburban models in favor of modern mixed-use developments featuring high-end office and residential units on the upper floors, along with street-level retail shops. Many planners see such projects as a means of creating more walkable, safe and vibrant neighborhoods. Retailers are drawn to intown opportunities such as Modera by Mill Creek’s mixed-use apartment communities (existing locations in Midtown, Sandy Springs and Vinings, with Reynoldstown coming soon), or Revel, a planned $900 million, 118-acre mixed-use and entertainment destination being developed by North American Properties in Duluth in Gwinnett County. With a limited supply of real estate inventory for shops and restaurants and the continued demand from new concepts entering or growing in the Atlanta metro market, the competition for space has grown fierce. For example, Franklin Street’s client City Barbeque waited 18 months for a premier location to become available for its new eatery in Johns Creek. The restaurant group made a lease agreement offer within three days of the prior tenant going dark to secure the spot before other bidders could jump in. …
HOUSTON — Houston-based retail firm Baker Katz has purchased PlazAmericas Mall, an 850,000-square-foot shopping destination in Houston. Formerly known as Sharpstown Mall, the property was built in 1961 and has undergone several renovations over the years. PlazAmericas Mall is situated on 37 acres and is the oldest enclosed mall in Houston. Matt Berry and Robbie Kilcrease of CBRE brokered the deal on behalf of the seller, Philadelphia-based RAIT Financial Trust. The tenant roster at the mall, which was approximately 70 percent occupied at the time of sale, includes Champs Sports, TX America Cinemas and Banana Bay Restaurant & Bar. The Harris County Appraisal District values the property at $12.2 million, according to The Houston Chronicle.
SARASOTA, FLA. — Benderson Development has acquired a portfolio of 15 retail properties throughout the country that were formerly leased to Toys ‘R’ Us and Babies ‘R’ Us. The sales price was not disclosed for the 600,000-square-foot portfolio. Locations in the Southeast include five stores in Florida — Miami, Palm Beach Gardens, Naples, Fort Lauderdale and North Miami Beach — and one asset in Cary, N.C. In March, Toys ‘R’ Us announced it was closing all 735 of its stores in the United States and Puerto Rico. Founded in 1949, Benderson Development owns a real estate portfolio comprising more than 40 million square feet of retail, office, medical, industrial, lodging and residential properties in 39 states.
COLD SPRING, KY. — Institutional Property Advisors (IPA) has brokered the $26 million sale of Cold Spring Crossing, a 325,383-square-foot retail center in Cold Spring, a Kentucky town about eight miles southeast of Cincinnati. The center was built in 2004 and is anchored by Kroger, Home Depot and Kohl’s. Craig Fuller and Erin Patton of IPA represented the seller, a private Cincinnati based-developer, in the transaction. Ashish Vakhariya of Marcus & Millichap’s Detroit office represented the buyer, a private investor, in a 1031 exchange. Cold Spring Crossing was 99 percent leased at the time of the sale.
BOSTON — Linear Retail Properties has acquired a three-story, 8,131 square foot retail building in the Downtown Crossing neighborhood of Boston. The sales price was $5 million. Located at 19-21 School St., the entire building is currently vacant. Linear plans to lease up the property with a full-building retail tenant or restaurant operator. Mike Edward, Jake Golden and Jon Gifford of Perry Brokerage Associates represented the seller, Envision Bank, in the transaction.
LAFAYETTE, IND. — Baum Realty Group LLC has arranged the sale of a 2,321-square-foot building occupied by Starbucks in Lafayette for $1.8 million. The single-tenant property is located near the Purdue University. Patrick Forkin of Baum represented the seller. A West Coast-based buyer purchased the asset in a tax-deferred 1031 exchange.
As e-commerce continues to challenge the growth, evolution and resilience of retail, brokers in Houston have reason to be optimistic about leasing velocity and absorption in the coming months, even as new construction floods the market. There’s no denying that in the past several years, the retail industry has experienced a shakeup. The move to online shopping has spared very few retailers, and Houston is no exception. The Houston MSA has seen its fair share of big box store closures, but tenants and developers alike appear ready to face the challenges head-on. The collective mood among retail professionals in Houston is one of acceptance of a new, tech-heavy retail landscape. The retail community has evolved into embracing the likes of pop-up shops, online platforms, curbside pickup options and a service-based shopping experience. Ultimately, however, it’s the consumers who decide the fate of certain retailers. The professionals who develop and lease retail properties are integrating more psychological analysis into their daily work than ever before. In today’s environment, even the slightest of nuances in consumer behavior can mold critical aspects of real estate strategies. The evolution of retail follows the evolution of human behavior. Market Fundamentals Houston is one of the …
SANFORD, N.C. — Chattanooga, Tenn.-based Hutton has broken ground on two adjacent retail development projects in Sanford. One project is a 10,400-square-foot, multi-tenant building that will include retail and restaurant space. The other project is a 3,200-square-foot standalone Zips Car Wash. Hutton has already signed Jersey Mike’s, Mattress Warehouse and Sport Clips to leases at the multi-tenant building, which currently has 1,500 square feet available for lease. Sanford is located about 40 miles southwest of Raleigh.
HUMBLE, TEXAS — Local developer Reign Enterprise Inc. will build a 14,350-square-foot, multi-tenant retail center on Will Clayton Parkway in the northern Houston suburb of Humble. Adam McAlpine of McAlpine Interests represented Reign Enterprise in the acquisition of the 1.7 acres on which the property will be built. Tom Condon Jr. of Colliers International represented the seller. A timeline for construction was not disclosed.