REAL ESTATE

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.   

As the International Council of Shopping Centers shut the doors on its RECon show in Las Vegas this week, Chain Store Age asked top brokers and third-party managers for their take on the temperature of physical retail. Not quite sick, not quite well, but certainly out of rehab and hard at work on recovery, was the general diagnosis.  

Ikea announced last week it would build a new location adjacent to a CBL property outside Raleigh, and this week CBL announced it would capitalize on that occasion to transform its Cary Towne Center into a mixed-use project.   CBL has been working with the town of Cary — an affluent and growing community in the Research Triangle — to start the zoning process to allow the construction of a multi-phase renovation of the property. Plans call for a mix of high-end retail, dining, entertainment, residential, office, and green space.

A decade from now, there’s not likely to be a shopping center — a successful one, at least — without click-and-pick meals, several fitness options, and healthy food and beverage purveyors.   That was the take of Phillips’ Edison’s VP of national accounts Michael Conway during a session at the RECon show. Some things all centers will soon provide, according to Conway:  

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.  

Great personal experiences are what separate brick-and-mortar retail from its virtual cousin on the Web, and high-end experiences will soon be coming to luxury stores.   That’s one of 10 key elements to increase foot traffic introduced at RECon this week by Vicki Eickelberger, managing director of Big Red Rooster, a store design unit of JLL.  

The 300,000-sq.-ft. mixed-use center being erected by International Speedway Corporation across from Daytona Speedway is filling up fast.   Three new tenants have signed on to One Daytona. Sister brands Clair de Lune, a home fragrance store, and Kasa Living, a home décor shop are Canadian brands making their first appearance in the region. Joining the development’s food and beverage roster is Built Custom Burgers, a build-your-own burger concept offering up a long list of toppings at no additional charge.  

PREIT’s mall-pruning program picked up during the retail real estate industry’s big RECon show.   As the show floor opened in Las Vegas, the Philadelphia-based company announced it had put up for sale Logan Valley Mall in Altoona, Pennsylvania, and Valley View Mall in LaCrosse, Wisconsin. PREIT reported it had received unsolicited interest in these properties and was willing to dispose of them to increase its cash position.