What about classic mall and big-box center brands? Have you been getting more inquiries from that segment of retailers?
That started before the pandemic when a lot of department store anchors began closing at malls, but it’s really opened up as we’re coming out of the COVID pandemic. Value brands like TJX and Ross and Burlington are very active. We have a Sleep Number on an outparcel pad right in front of one of our centers. Williams Sonoma and Pottery Barn are also looking at spaces in neighborhood centers.
Throughout the pandemic, sales of single-tenant net lease properties have been brisk. Municipalities can be slow to approve drive-through pick-ups, whose value rose to a high level in the last year.
Yes, there’s a big demand for drive-throughs by QSRs, banks, and medical uses. We’ve found that communities have become more liberal in allowing them. Because of our teams’ long-standing relationships with local municipalities, we’ve been able to free up space in our parking lots to build those buildings. We’ll ground lease it or develop it and drive value out of our outparcels.