2B — August 31 - September 13, 2012 — Shopping Centers — Mid Atlantic Real Estate Journal
S HOPPING C ENTERS
e all know the “golden rule” of real estate, we have heard it so By James Balliet, KW Comm’l.-The James Balliet Grp. Location! Location! Location! ...What will it cost you? W fairly easy to “get lost” in these centers. $16-$25 SF/NNN count. If you are not easy to get to and convenient to access most customers will probably opt for a more convenient choice.
KBE Building Corporation...Building America’s Brands In the retail business, timing is everything. We understand that. And we deliver. KBE has more than 50 years of experience in retail construction - from shopping centers to big box to specialty retail.
Lifestyle Centers- Typically constructed in high income ar- eas….Upscale specialty shops, Regional and National restau- rant chains, cinema, specialty grocer, national book chain. Base rents and high NNN ex- penses usually keep out most smaller local tenants. $25-$40 SF/NNN Neighborhood Centers- Usually a grocery store an- chored center….high traffic, multiple small store tenants, fitness centers…moderate rents. $16-$20 SF/NNN Strip Centers- Multiple small stores, usually very con- venient ingress and egress, high visibility and usually palatable rents. $14-$20 SF/NNN When choosing a location ask yourself does your store or clients store really need to be in the new construction “Big Box” Power Center where the rent factor might be counter produc- tive to profitability? Of course this type of Center typically provides high traffic but are the RIGHT customers walking through your doors? The point is do not confuse high traffic count and high customer count. Are you strategically position- ing yourself within maximum exposure to your targeted de- mographic? The counter point to this thought process is that if you locate your store in the middle of nowhere or a location that is not overly convenient there will be additional marketing expenses to drive customers to you. Another important factor to consider is co-tenancy, for ex- ample you probably would not want to place a high end cloth- ing store next to a dollar store concept. Also be sure to take parking convenience into ac-
many times we chant it in our sleep. However, in this economic climate there a r e m a n y variables and rental oppor- t un i t i e s t o
In summary, do your research and hire a qualified commercial broker to assist you. They will know the historical tendencies of a particular retail environment. The goal is to obtain the best mixture of visibility, demograph- ics, convenience, parking, co- tenancies and rent. After all it’s your bottom line on the line. James is president of KW Commercial-The James Balliet Commercial Group located in Allentown, PA. Specializes in Shopping Center sales and leasing, and is a 2010 and 2011 Co- Star Group Power Broker Award recipient. n
DC USA,Columbia Heights,Washington,DC Interior fit-out
Fair City Mall,Fairfax,VA Base building construction, tenant fit-out
consider when choosing a new location for your retail business (or for your clients). Obviously, choosing a strategic position is important to most retailers but with above normal vacancy rates and multiple holes in the market left behind by failed concepts it might not always make sense to pay a pre- mium for the best or perceived best location in any given mar- ket area. For example’s sake let’s take a closer look at a few of the most common open air retail space options and typical small store rental rates associated with them. Please note to keep size of article down we will not discuss enclosed malls, regional centers or outlet centers. Also, please note the figures below are aver- ages and in no way set in stone. As we all know everything is negotiable. Power Centers- Always an- chored by multiple “Big Box” retailers, national, regional and local restaurants, very high traf- fic, few smaller tenant spaces… usually command higher rents. $30-$40 SF/NNN Community Centers- An- chored by discount department stores, home improvement, supermarket, drug store, large specialty or discount apparel anchors. There are usually multiple small store leasing opportunities available but it’s
EvergreenWalk,SouthWindsor,CT Base building construction, tenant fit-out
Maryland | Mid-Atlantic Region • Connecticut | Northeast Region • 1.800.798.9909 • www.kbebuilding.com Small enough to listen. Big enough to deliver.
a section of the Mid Atlantic Real Estate Journal P.O. Box 26, Accord, MA 02018 781-871-5298 • 800-584-1062 fax 781-871-5299 www.marejournal.com Shopping Centers Real Estate Journal
Section Publisher Elaine Fanning firstname.lastname@example.org
Section Editor Rachel Rugman email@example.com
The James Balliet Commercial Group
“The Lehigh Valley’s Premier Full Service Commercial Real Estate Company”
• Shopping Center Sales & Leasing • Retail, Office, Medical & Industrial Properties • Distressed Property & Asset Management • Tenant Representation • Business Brokerage • Commercial Land Brokerage • Multi Unit Apartments
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