Tenant Update

CBL has named Alan Lebovitz senior VP of management to succeed Jerry Sink, who has retired after a 25-year career at the company. Lebovitz will oversee the staff and operations at the company’s 123 properties, a responsibility that encompasses some 300 employees and 77 million sq. ft. of retail.  

Its Macy’s and J.C. Penney’s continue to do business. In-line stores close, but new tenants quickly assume their spaces. Shoppers continue to arrive from as far as 75 miles away.   The Empire Mall in Sioux Falls isn’t exactly bucking trends. It’s merely an example of a core precept of retail which states that malls will survive where jobs and rooftops are rising, according to a report in the local Argus Leader.   

Bed, Bath & Beyond, which missed sales and earnings expectations for its first quarter, is focusing online for growth.   Citing strong digital growth, CEO Steven Temares said on the chain's quarterly earnings call that he expects store closings to increase as leases expire and as the way customers shop continue to evolve.  

The nation’s fastest-growing planned community keeps speeding along.   The Tavistock development, which already has 12,000 permanent residents, will add another thousand visitors a week thanks to a KPMG training facility that broke ground this week. In addition, the $400 million facility will house an employee staff of 330.  

In the Mohave Valley of Arizona, a town has punched a hole through a hill to unite a challenged shopping center with the local mall to improve traffic.   Kmart will close its store in the City Square shopping center in Bullhead City, across the Colorado River from Laughlin, Nevada, leaving it without the anchor that was its prime draw. In fact, few locals even knew the name of the center, referring to it just as Kmart, according to the Mohave Valley Daily News.  

The J.C. Penney store in Edina, Minnesota, with little movement in the aisles is about to see a lot more action.    Simon has announced that the 120,000-sq.-ft. space at its Southdale Center will close and be replaced by a Life Time ‘athletic resort.’ The company runs 123 centers in the U.S. promoting healthy eating and exercise regimens. Centers are one-stop fitness shops offering tennis, swimming, basketball, and yoga along with weight loss and nutrition education.  

An online clothing brand best known for its signature shirts that are designed to be worn untucked is going to open at Mall of America, in Bloomington, Minnesota.    Untuckit will open a 1,300-sq.-ft. outpost  at the giant mall this fall. It will be the company's first store in Minnesota, and carry shirts for both men and women.      

Mid-America Real Estate has been tapped to handle the marketing and leasing of the Macy’s building being redeveloped in downtown Minneapolis.   Located on the corner of South 7th and Nicollet Mall, the landmark store that was originally Dayton’s will tie together its street and skyway levels and fill them with entertainment providers, a food hall, and traditional retailers new to the market. 601w Companies and United Properties are the developers.  

Despite the rash of recent store closings, leasing activity is strong at malls and shopping centers as retailers take advantage of favorable terms.   That’s the take of Mizuho Securities analysts following conversations with major broker organizations at the International Council of Shopping Centers RECon Show in Las Vegas last week.   

Among several developers reporting positive signs for leasing at the RECon Show in Las Vegas was Olshan Properties.   Head of Retail Ken Marshall said media reports about retail’s downfall did not ring true at his company. “The first few months of 2017 generated significant leasing activity throughout our highly-diversified retail portfolio and, most notably, within our retail holdings that are housed in mixed-use environments,” he said, noting that the trend began last year.