WHAT’S ON TAP FOR RECON 2015?
When the International Council of Shopping Centers opens the doors of the Las Vegas Convention Center on May 17 to retailers and shopping center attendees from around the globe, it will unveil a lineup of newly built, underway and redeveloped properties ripe for deal-making.
Leasing interest at RECon 2015 is expected to be high, this despite naysayers who have predicted the demise of the shopping mall. Not likely, say those in the know. While it’s true that retail will continue to morph and shift to meet the needs of an evolving customer, physical stores and malls are here to stay. According to Lawrence McLaughlin, partner and chair of the real estate department at Detroit-based law firm Honigman Miller Schwartz and Cohn LLP, “2015 will see a continuing convergence of e-commerce and traditional in-store retailing with an emphasis on convenience, innovative marketing and enriched shopping experience (i.e., omnichannel),” he said. “More e-retailers will experiment with physical stores/delivery centers, following Amazon’s lead.”
As well, big-box and larger-scale stores will continue the rollout of smaller, specialty versions of their stores featuring select categories of merchandise, McLaughlin added. And the shopping centers that house them will continue their collective focus on place-making, convenience and strategic merchandising.
On the following pages, Chain Store Age highlights nine projects that not only represent a sampling of what will be on display at RECon 2015, but also give a taste of what the shopping experience will look like in the months and years ahead.
East Market
Philadelphia
Developer: National Real Estate Development
Owners: National Real Estate Advisors, JOSS Realty Partners LLC, Young Capital LLC and SSH Real Estate
Key tenants: Specialty grocer MOM’s Organic Market
Construction status: Demolition began in the fourth quarter of 2014.
Occupying a full city block between Market and Chestnut, 11th and 12th Streets, East Market is revitalizing Philadelphia’s historic Market Street. The 4.3-acre, $500 million development is ideally situated between historic landmarks, the thriving business district, well-established residential neighborhoods and one of the largest transportation hubs in Philadelphia.
East Market will offer residents, shoppers and employees a convenient urban experience. National retailers and restaurants will blend with local boutiques and restaurants, contemporary apartments and office space — attracting locals and tourists at all hours of the day and night. In addition, the site will be one of the first in Philadelphia to feature approximately 9,600 sq. ft. of digital and static signage along Market Street.
“As young professionals, innovators and empty nesters move back into Center City, they are looking for a place to conveniently blend their social and professional lives,” said Dan Killinger, managing director, National Real Estate Development. “East Market will be the place that allows residents to shop, work, dine and live in the same city block — with immediate access to the best that Philadelphia has to offer.” Added Paige Jaffe, retail site specialist for The McDevitt Co., “At RECon 2015, we are looking forward to connecting with interested retailers who fit our mission and clientele, and to introducing East Market to those who may have just started exploring Philadelphia as a profitable new site.”
Santa ClaraSquare Marketplace
Santa Clara, California
Developer and owner: Irvine Company Retail Properties
Key tenants: Organic and natural grocer Whole Foods Market wil occupy 50,000 sq. ft. when it opens in mid-2016; Main Street, located in the center of Santa Clara Square, wil offer 40,000 sq. ft. of shops, dining and service retail. Ericsson, one of the world’s top telecommunications service providers, wil bring 2,000 employees to Santa Clara Square’s office campus by late 2015.
Construction status: Construction is underway at Santa Clara Square, a 1.9 million-sq.-ft. master-planned community with an office campus and a 120,000-sq.-ft. specialty shopping center that will be home to the Whole Foods Market flagship. Construction is also underway on the West side of Main Street, Santa Clara Square Marketplace, as well as on over 1 million sq. ft. of class A office space.
For the first time in Silicon Valley, the Irvine Company is bringing 50 years of planning and master-building expertise to one project with Santa Clara Square, a 100-acre sustainable community of office, specialty retail and a vibrant Main Street. Santa Clara Square will be a walkable community within 30 acres of open space and parks. Its world-class architecture, central Silicon Valley location and seamless integration of offices, retail and restaurants speak to the needs of Silicon Valley residents.
A Main Street, designed as a vibrant town center, will have 40,000 sq. ft. of shops, dining and services with a central plaza for a farmers market, concerts and community events, while the 1.8 million-sq.-ft. office campus brings major employers and additional jobs to the area. In addition will be 15 acres of open space for parks and recreation as a complement to Santa Clara Square Marketplace retail. Whole Foods Market’s flagship store arrival will be a first for the city of Santa Clara when it opens mid-2016.
“At RECon 2015, we’ll be meeting with retailers and restaurants and further sharing our plans for the Santa Clara Square campus and the opportunity it provides,” said Dave Moore, president, Irvine Company Retail Properties. “Santa Clara Square Marketplace, as the specialty retail component, is a part of our larger master plan and will see some 2,000 daytime workers by the end of this year followed by the opening of Whole Foods Market in 2016. Our leasing team is excited about it and we’ll be sharing the opportunities with the goal of creating a curated mix of unique dining, shopping and service retail.”
Irvine Spectrum Center
Irvine, California
Developer and owner: Irvine Company Retail Properties
Key tenants: Nordstrom, Macy’s, Target, H&M and Apple are among the center’s 130 stores, restaurants and entertainment venues. Irvine Spectrum Center is home to the 6,400-seat Edwards Irvine Spectrum 21 Cinemas, the area’s first IMAX & RPX theatre, Dave & Buster’s, as well as the Improv Comedy Club. Among its 40-plus food tenants are Yard House, Cheesecake Factory, P.F. Chang’s, Paul Martin’s American Grill, CUCINA enoteca, Wood Ranch BBQ & Grill, California Pizza Kitchen, BRIO Tuscan Grille, Del Frisco’s Grille and Umami Burger.
Construction status: Open and operating; originally opened in 1995 at 250,000 sq. ft., followed by multiple expansions, Irvine Spectrum Center is now 1.2 million sq. ft. of retail, dining and entertainment venues.
Celebrating its 20th anniversary this year, Irvine Spectrum Center is Southern California’s ultimate shopping, dining and entertainment lifestyle destination visited by more than 17 million people annually. Located at the confluence of the I-405, I-5 and Highway 133, with visibility to 526,000 cars per day, the center is known for its stunning Mediterranean architecture, its dynamic coastal C