Real Estate

Newk’s Eatery is on the move.   The fast-casual restaurant chain is expanding into Central Florida, with plans to open 10-12 corporate-owned locations in the Orlando area over the next five years. The expansion is part of the company’s long-term goal to open more than 200 locations by 2018.     Construction is underway on the first Orlando-area restaurant in the Waterford Oaks shopping center, owned by BluRock Development. It is slated to open in mid-August.     

Toms Shoes is expanding its fledgling store portfolio, and will open a location at Mall of America, Bloomington, Minnesota, in time for holiday shoppers.   Founded in 2006, Toms matches every shoe purchase with a donation to a child in need, and gives glasses, medical treatment and/or sight-saving surgery with each purchase of eyewear.  

Eight new tenants have opened their doors at Silicon Valley’s Santana Row, a 1.7 million sq.-ft. multi-use property that includes a hotel and office and residential space.    Suitsupply, a European import, assumes the highest profile of the newcomers with a 4,425 sq.-ft. space. Jewelry retailer Kendra Scott and body and hair care specialist Aesop will inhabit spaces of just over 1,000 sq. ft.  

Retail store expansion could get a boost from lower rents in the next 12 months as real estate investment trusts react to volatility in global financial markets, according to Pacific Investment Management Co.   In a report titled, “U.S. Real Estate: A Storm Is Brewing,” PIMCO portfolio managers John Murray and Anthony Clarke forecasted a drop of as much as 5% in commercial real estate prices due to a confluence of factors including public market volatility, tightened regulations, and uncertain foreign capital flows.

So far, bidding on the 464 stores of bankrupt sporting goods retailer Sports Authority has been limited. According to Reuters, Dick’s Sporting Goods has placed a bid on 17 Sports Authority stores, with other bidders only attempting to purchase single locations. 

If you want to ferret out the hottest new concepts in retailing, head to the coolest streets in the city, not the suburban mall. So states a new report from Cushman and Wakefield, which rated the 100 hippest and edgiest neighborhoods in America based on assessments from its brokers, appraisers, and property managers nationwide.  

Nordstrom  plans to shutter its location at Horton Plaza, in downtown San Diego.  The store, which opened in 1985, will remain open through August 26, 2016.   "These are always tough decisions to make, but in taking a look at the store's performance and our business needs into the future, we believe this is the best direction to take," said Jamie Nordstrom, president of stores for Nordstrom. "We look forward to serving our loyal Horton Plaza customers at our other San Diego stores.”  

Malls and outdoor centers are increasingly seeking out small and local merchants to help them stand out from the competition.   Kimco, for example,  has expanded a program that offers small businesses one year of free rent and reduced property charges, CNBC reported.  Originally started in California four years ago, the program has since been expanded to centers in 19 states.    

Retail tenants are not only reporting a strong performance for the year so far, but are also optimistic about the next six months.

Retail tenants are not only reporting a strong performance for  the year so far, but are also optimistic about the next six months.