Southeastern real estate Market on the rise

Orlando, Fla. -- Even though tropical storm Erika threatened Orlando, Florida, in advance of the ICSC Florida Deal-Making event earlier this month, attendees’ moods weren’t in the least dampened by the occasional rain showers. Attendance was strong and interest was high, as shopping center companies showed their wares to prospective tenants.



Chain Store Age talked with several of those companies, discussing market trends and projects in the works. Boyd Development, for example, is opening its experiential destination Hamlin in phases starting summer 2016, introducing Orlando to a high-profile waterfront project that has all the bells and whistles. Hamlin will feature public spaces with a focus on health and fitness that will include walking and running paths and bike trails.



Sembler, headquartered in St. Petersburg, Florida, is 95% leased overall and has acquired the company’s ninth center and broken ground on three grocery-anchored centers over the last few months.



“Our strategy is to understand where our tenants want or need to be, and then find the right site in that market on which to build,” said Ron Wheeler, CEO, The Sembler Co.



Wheeler stated the southeastern market is “back” from the recession and retailers are expanding, but at a more moderate pace. Retail categories he’s watching over the next several months include health, wellness, fitness and restaurants, as these type of retailers are able to offer consumers an experience they’re not able to find on the Internet.



Justin Grieder, VP of leasing and tenant representation for JLL, identified the state of the southeastern market in terms of development, leasing and the overall retail climate as healthy, but still with some recovery underway. The dense, core and urban markets are still doing phenomenally well, but the B and C (secondary and tertiary) markets are still struggling to recover, he said.



As developers and owners continue to watch the market recovery and the upsurge in retailer expansion plans, they will be proceeding with restraint, attention to detail and bringing experiential concepts to new developments and redevelopments throughout the southeastern U.S., which isn’t bad news at all.