Real Estate Journal — Shopping Centers — November 25 - December 8, 2016 — 5C
www.marejournal.com
M id A tlantic
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By Timothy J. Brennan, PE, Nave Newell Time to join the BOOM?
etail is booming, in the right location - Is now the time to reposition your property? Slow but steady consumer R
While we’re seeing a newly evolved retail market, it’s important to do your home- work and know if you’re in the right position to take advantage of this movement. Timothy J. Brennan, PE is a principal at NaveNew- ell and member of ICSC. Nave Newell is a land development consulting firm located in Wayne, PA and recently completed the King of Prussia Mall Expansion project secur- ing approvals for Simon in 9 months. Visit www. navenewell.com for more information. n
to obtain higher rents. Get Started – Do Your Due Diligence If you’re considering pur- chasing a property, due dili- gence is already part of the process, but for those who are looking to reposition a cur- rent asset, it’s still a MUST! After refamiliarizing yourself with your Title Report, pos- sible site constraints also need to be factored into your decision. Getting a feel for the local municipal climate is a good first step. Know- ing if their ordinances have changed and what they’re looking for is important.
conf i dence i s d r i v i ng growth, par- ticularly in l i v e -wo r k - play zones. Traditional r e t a i l ha s e v o l v e d . Owners and deve l oper s
Restaurant pad site on the outskirts of the King of Prussia Mall parking lot
Timothy Brennan
It’s also vital to understand if current environmental/ stormwater regulations could potentially reduce your yield.
Also, does the off-site utility and roadway infrastructure ex- ist to accommodate a possible change in use and expansion?
are evaluating properties to create unique destinations and mixed-use experiences. People want fresh concepts. As noted by Eric Goldstein, executive director of the King of Prussia Business Improve- ment District at the recent Philadelphia Magazine Think Fest, people want “the city without the city.” We’re seeing large-scale improvements in addition to pad site develop- ment. Underutilized parking lots are sprouting new res- taurants. Fast food operators, convenience stores and ca- sual dining restaurants are all looking for the right location. Surprisingly most areas are actually underserved. Retail- ers hoping to be in high-profile locations are willing to pay extremely high rents – which wave swelled to over $100/sf. How the Market has Evolved Current high market rents are pushing land owners into considering near total rede- velopment. Even recently redeveloped centers, while performing at a high rate, are being re-assessed to determine ‘max-out’ potential. It’s time to adapt. Now is the time to reinvent your property and understand its best use. Here’s what you need to understand: What are tenants looking for? What does the community want to see? Are you in the right location for higher rents? In areas like King of Prus- sia, PA where there is a focus on attracting new employees, residents and visitors - retail is thriving. Zoning may have changed in your favor since your last development, affect- ing use, parking, building and impervious coverage and set- backs. An updated assessment looks at ‘hidden potential’ (yield) that might be available from new and more favorable zoning ordinances. Youmay be able to get more square footage and reposition your property
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