Monday, March 10, 2025
Read the Digital Magazines Subscribe to the Magazines
Subscribe

Retail

Market ReportsMidwestMidwest Market ReportsRetailWisconsin

Flurry of New Development Fuels Retail Resurgence in Milwaukee

by Kristin Harlow

The Milwaukee-area apartment market wasn’t the only real estate sector to benefit from continued job growth and household formation in 2016. The optimistic employment outlook, together with an influx of millennials who, according to Gallup, are spending more on nonessentials, has benefitted the local retail market as well. It’s a trend that we expect to continue in 2017. Filling a retail void A market that historically has been largely underserved in terms of new retail development has essentially reversed its standing, with approximately 1.6 million square feet delivered in the last two years alone, according to CoStar Group. A more diversified economy less susceptible to the highs and lows of other markets, taken together with Milwaukee’s public-private partnerships and lower real estate taxes compared with neighboring states, has created a pro-development environment that appeals to retailers and developers alike. Known for its older stock of shopping centers, the region has seen a surge in redevelopment activity, particularly in the suburbs, where previously underutilized assets are being rebranded and reimagined. In November 2016, HSA Commercial acquired the 217,346-square-foot Brookfield Fashion Center in Brookfield, just west of Brookfield Square Mall. Built in 1986, the center houses stalwart tenants that have been retained …

Continue Reading
FacebookTwitterLinkedinEmail
Market ReportsTexas Market Reports

Massive New Projects, National Retailers Spur Development Explosion In El Paso

by Jeff Shaw

El Paso in 2017 is a story of growth. Sales tax rebates increased over 10 percent in 2016 — second among the 20 largest cities in Texas. Since 2000, the El Paso-area population has increased by more than 27 percent, and as the longtime adage goes, “retail follows rooftops.” Long under the radar of national concepts, El Paso’s retail sector is changing. Major retail developments in El Paso are gaining national attention. One of the catalysts contributing to this interest is the success of the Fountains at Farah development, a 600,000-square-foot retail center with shops, restaurants and a live music amphitheater. The Fountains has attracted concepts such as Nordstrom Rack, Ruth’s Chris Steak House, Kate Spade, West Elm, Grimald’s, Chuy’s, Kona Grill and Bricktown Tap House & Kitchen, to name a few. The ability of this large-scale center to attract popular national and super-regional concepts that are “new to El Paso” has provided an impetus for other developers to pursue similar developments. Add to the mix the low interest rate environment and a growing population with a stable economy, and you have a development boom. Retail takes city by storm On the west side of the city, major developments include …

Continue Reading
FacebookTwitterLinkedinEmail
Company NewsKansasMidwestRetailTop Stories

Payless ShoeSource Files for Bankruptcy, Plans to Close 400 Stores

by Nellie Day

TOPEKA, KAN. — Payless ShoeSource has filed for Chapter 11 bankruptcy and announced plans to immediately close nearly 400 underperforming stores. The company, which bills itself as the largest specialty family footwear retailer in the Western Hemisphere, currently operates approximately 4,400 stores in more than 30 countries. The shoes and accessory retailer was founded in 1956 in Topeka, Kan. “This is a difficult, but necessary, decision driven by the continued challenges of the retail environment, which will only intensify,” says W. Paul Jones, the company’s CEO. “We will build a stronger Payless.” Payless has entered into a Plan Support Agreement (PSA) with its lenders to reduce its debt load by almost 50 percent. The plan will also allow Payless to lower its annual cash interest costs, access additional capital and provide a path to emergence from Chapter 11 with a sustainable capital structure. The agreement will also allow Payless to invest in areas that may provide further growth, including omnichannel expansion, product and inventory initiatives, and international expansion in Latin America and elsewhere. The company plans to optimize its store footprint through the immediate store closures, as well as managing its existing real estate lease portfolio. This may include modifying …

Continue Reading
FacebookTwitterLinkedinEmail
Market ReportsMassachusettsNortheastNortheast Market ReportsRetail

E-commerce Impacts Retail Market in Eastern Massachusetts

by Taylor Williams

Retail vacancy levels declined in 2012 and 2013 in Eastern Massachusetts following several years of rising vacancy rates during the Great Recession. But since 2013, vacancy rates have been on the rise as shopping habits continue to tilt toward online options. In 2016, retail inventory gained modestly, reaching 194.2 million square feet, an increase of 0.5 percent, although no major center opened during the year. The region added 488,800 square feet of vacant retail space, and the vacancy rate increased to 9 percent. Big box closings — notably Sam’s Club, JCPenney, and Kmart — and the departures of Citibank and City Sports, were the primary cause of increasing vacancy. Nonetheless, the region experienced positive absorption, netting 573,600 square feet. As reported in The KeyPoint Report: Eastern Massachusetts/Greater Boston, Boston and Cambridge ranked one and two in the list of top 10 towns by retail square footage. Abington tops the rankings for lowest vacancy rate. Eight of the top 10 towns with the highest vacancy rates are repeats from the previous year; new additions include Wrentham, site of the 135,000-square-foot Wrentham Crossing, which is vacant and currently for sale. The under-2,500-square-foot size classification remains the largest segment of the market, and …

Continue Reading
FacebookTwitterLinkedinEmail
Market ReportsNevadaRetailWesternWestern Market Reports

New Projects, Offerings Keep Las Vegas’ Retail Market Exciting

by Camren Skelton

After finishing 2016 with a bang, 2017 is shaping up to be another great year for retail real estate in Las Vegas. Tourism, construction, population growth, infrastructure improvements and business growth are all cause for excitement. The Strip is once again predicted to dazzle retailers. There are currently more than $9 billion in construction projects underway or scheduled through 2019. The development lineup is dominated by Resort World, Steve Wynn’s Paradise Park and a hopeful sale of Fontainebleau. Alon is another exciting project that is looking to replace a major funding source so it can begin construction. Several other important, but smaller projects are scheduled to come on line later this year and into 2018. These include infrastructure, retail expansion and additional hotel room projects. New retail and food arrivals to the Strip include Skechers, Walburgers, Morimoto, Sugarcane Raw Bar Grill, Giordano’s and John Rich’s Red Neck Riviera. Around 42 million visitors from the U.S. and around the world enjoyed Las Vegas in 2016, and we are anticipating even more in 2017. Las Vegas population growth also continues. The city was ranked the 28th largest in the U.S. in 2016, while housing sales and construction continue to have healthy growth. …

Continue Reading
FacebookTwitterLinkedinEmail
FloridaRetailSoutheastTop Stories

Darden Restaurants to Acquire Cheddar’s Scratch Kitchen for $780M

by Nellie Day

ORLANDO, FLA. — Darden Restaurants has agreed to purchase Cheddar’s Scratch Kitchen for $780 million in an all-cash transaction. Cheddar’s was founded in 1979 in Arlington, Texas, and now has 165 locations, including 140 owned and 25 franchised, across 28 states with average annual restaurant volumes of $4.4 million. “We are excited about the opportunity to be a part of Darden,” says Ian Baines, CEO and president of Cheddar’s. “Our operating philosophy and values are similar. Additionally, Darden’s expertise will enable us to further capitalize on our growth potential.” Baines will remain as president of Cheddar’s. He will report to Gene Lee, Darden’s president and CEO. The transaction is expected to be complete in Darden’s fiscal 2017 fourth quarter. It is subject to customary closing conditions. “Cheddar’s is a great fit in the Darden portfolio because it complements our existing brands,” says Lee. “This addition will also enable Darden to further strengthen two of our most important competitive advantages: our significant scale and our extensive data and insights.” Orlando, Fla.-based Darden Restaurants Inc. owns and operates more than 1,500 restaurants. Darden’s portfolio currently includes Olive Garden, LongHorn Steakhouse, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s.

Continue Reading
FacebookTwitterLinkedinEmail
Market ReportsRetailSoutheastSoutheast Market ReportsTennessee

Nashville’s Retail Market is Growing Leaps and Bounds, Both Inside and Out

by John Nelson

Just like the hit show, “Nashville,” Nashville’s retail market has more than one storyline in play and all of them intertwine to create a tapestry that showcases the retail development in our city. You don’t have to look too hard around downtown Nashville to see the redevelopment surge that is bringing retail as part of mixed-use and traditional developments to this market. Greenfield development in suburban nodes is also capturing the spotlight, albeit a smaller one, as a direct result of the intown growth that is driving up land and construction costs to a level that puts available space out of reach for many retailers. Those that can’t absorb the risk or afford the rent in downtown are looking to Nashville’s most popular suburbs for reasonable storefront alternatives. Mixed-Use Downtown Downtown Nashville redevelopment is a hit right now with no end in sight, which is welcomed news for well-capitalized, specialty retailers. Because of the continually rising costs of land and construction, redevelopment and mixed-use projects are the only feasible entry points for retailers in this market. One of the most significant projects highlighting downtown’s potential is the 6.2-acre redevelopment of the Nashville Convention Center: Fifth + Broadway. A high-quality, mixed-use …

Continue Reading
FacebookTwitterLinkedinEmail
CaliforniaMarket ReportsRetailWesternWestern Market Reports

Experiences Win Out Over Some Traditional Big Boxes in San Diego

by Camren Skelton

There was a big shake-up in the big box world with long-time sporting goods staples Sports Chalet and Sports Authority shuttering stores across the county. Macy’s in Mission Valley is also closing, while Nordstrom is shutting down in downtown. Interestingly, Hobby Lobby and the large pet stores seem to be buffered by the big box epidemic. In Chula Vista, two long-time vacant big boxes were finally chopped up into four spaces to accommodate the mid-sized box users. The good news is that big, “boring” boxes are being replaced by big “experiences.” Experiences, whether in a larger property or within a specific business, continue to be important for retailers and restaurants. Landlords across the county are making large investments to create experiences that will attract consumers. At the top end of the spectrum we have seen Westfield finally pulling the trigger on a massive remodel of the UTC mall, which will include more than 100 new stores and restaurants. Rouse purchased the Carlsbad mall from Westfield and has seemed to follow a similar business plan with its revamp, adding an exciting lineup of restaurants along the outside of the property. Liberty Station in Point Loma is coming into its prime with, …

Continue Reading
FacebookTwitterLinkedinEmail
Market ReportsNorth CarolinaRetailSoutheastSoutheast Market Reports

Grocery, Infill Mixed-Use Projects Make Up Bulk of New Retail Supply in Triangle

by John Nelson

The Raleigh and overall Triangle retail markets ended 2016 in a very healthy position. The Triangle vacancy rate is currently at 6.09 percent, nearing 10-year lows dating back pre-recession and includes retail absorption nearing 900,000 square feet over the past four quarters. The region’s diverse economic engine driven by technology, university systems, heathcare and Raleigh as a state capital, combined with a relatively low cost of living and temperate climate, continue to push population growth and related retail expansion. With fierce grocery competition, a natural evolution of inward growth and urbanization and several large mixed-use development projects, the Triangle retail market is thriving. However, e-commerce, rightsizing and store closures continue to challenge the broader U.S. retail market and the Triangle has not been spared. Grocery Competition With several homegrown grocery brands, North Carolina and the Triangle region have historically been one of the most competitive areas for grocers in the United States. Regional players like Harris Teeter (now owned by Kroger), Lowes Foods, Food Lion, The Fresh Market, Ingles and Earth Fare (all based in North Carolina) have competed for years with out-of-state supermarkets Kroger, Whole Foods Market, Trader Joe’s and even Walmart. This year brought a new level of …

Continue Reading
FacebookTwitterLinkedinEmail
pastora
New JerseyNortheastRestaurantRetail

Pastosa Ravioli Opens New Location in Florham Park, NJ

by Haisten Willis

FLORHAM PARK, N.J. — A new Pastosa Ravioli restaurant has opened in Regency Plaza at 186 Columbia Turnpike in Florham Park. With stores already open in New York City, Cranford and Manalapan, N.J., the Florham Park location became Pastosa’s 11th overall. Pastosa is a family-owned business specializing in ravioli and specialty Italian products, sauces, mozzarella cheese and prepared foods. Alison Horbach of Ripco Real Estate identified the location and brokered the transaction on behalf of Pastosa. Florian Suserman, also of Ripco, represented the owners of Regency Plaza.

Continue Reading
FacebookTwitterLinkedinEmail
Newer Posts
Older Posts