News
4 KEY RETAIL TRENDS
March 26, 2012
| Buying new shopping centers. Focusing on core competency. And marrying online with bricks and mortar. Just a few of the trends laid out by our retail panel at Bisnow's 2nd Annual Atlanta Retail Real Estate Summit at the Ritz-Carlton Buckhead. | ||
| 1. STABILIZING THE PORTFOLIO | ||
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| For almost all our retail landlords, the focus is to stabilize the portfolio, by buying more solid assets or eking out opportunities in existing ones. For instance, Regency Centers recycled $90M in older properties and purchased $100M in retail centers with better NOI growth. Regency's Andre Koleszar (who at quick glance strikes a handsome resemblance to Ben Affleck) also says the developer started $95M in new retail centers last year but only those with ?tough? entitlement obstacles in core markets. Andre is with our panel moderator, Hartman Simons & Wood's Bob Simons. | ||
| 2. BACK TO BASICS | ||
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| ?We're getting back to our guns,? says Cousins Properties' Mike Cohn, who says the Atlanta developer deviated from its core business in the past few years ?with a little too much leverage.? Cousins will instead be focusing on in-fill developments in core markets with existing demand, such as its Emory Point mixed-use project now under way. | ||
| 3. RENTS REMAIN THE SAME | ||
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| Retailers and landlords may be in better shape than they were two years ago, but don't expect a big jump in rents. Or any increase for that matter, says DLC Management's Mike Puline. ?We're not seeing a whole lot of rent growth,? Mike says. In fact, some landlords are still offering aggressive concessions, including up to a year in free rent, he says. And while many of the anchor spaces have demand, its the mom-and-pop stores (up to 5k SF) that are still struggling. | ||
| 4. ONLINE PUSH | ||
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| The Home Depot's Kate Peterson says a recent overhaul of its website was designed to drive business into the store as well. Now with 300 SKUs online, Kate says Home Depot is encouraging customers to pick up items in the store ?within an hour? of placing an order. (For any late night emergencies that might require lumber or some sage paint swatches.) The home improvement retailer has also been carving out-parcels from its massive parking lots to generate some income, including a recent Panera restaurant at a local store. She says the retailer has sold 50 outparcels across the country. |
