2C — August 26 - September 15, 2016 — ICSC PA/NJ/DE Conference & Deal Making — Shopping Centers — M id A tlantic
Real Estate Journal
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S hopping C enters
By Jay Haines, NAI Summit Lehigh Valley Retail ‘In Sync’ with National Trends
I
t may be a bit presumptu- ous to infer that the cur- rent national and regional
price dividend’ should make its way into retailer’s pockets. National projections are for res- taurants, e-commerce, build- ing/garden suppliers, sport- ing goods and apparel stores to make the greater gains. Gasoline stations, department stores, electronics, jewelry and office supply stores could see sizable contraction; due mainly to cyber-stores. The greater Lehigh Val- ley regional market is the third largest metropolitan area in Pennsylvania situated 60 miles north of Philadelphia and 90 miles west of New York City. The area has experienced
spurred new retail development all pointing to an improved platform for retail companies and their investors through at least 2017. The national outlook for con- sumer spending, specifically disposable income is positive. 2014 saw a rate of a 2.7% in- crease, while 2015 came in at 3.5%, with 2016 projected to be 3.2% and 2017 at 3.1%. One of the major factors driving this improvement is lower energy costs. The U.S. average for a gallon of gasoline is $1.82 less than 2014. Even though fore- casts see American consumers somewhat cautious, the ‘pump-
healthy retail growth and con- tinues to have proposed major ongoing development. Most recently, Hamilton Crossings brought the first Costco and Nordstrom Rack to the region. The center also boasts Target, Dick’s Sporting Goods, Whole Foods, Pier 1 Imports, DSW, PetSmart, Old Navy and other familiar national chain retail- ers. The area’s retail mainstay, Lehigh Valley Mall recently an- nounced plans for another ex- pansion of its fourteen outdoor mall stores which currently showcase an Apple Store, Pot- tery Barn, Sephora, Williams & Sonoma, Bonefish Grille and
Bravo Italian Restaurant. The hospitality industry has experienced an uptick in the region after a rather lengthy hiatus. Center city Allentown is now home to the area’s first full service location the Renais- sance Hotel of Marriott Interna- tional. A recent groundbreaking near one of the area’s largest corporate centers will boast a 135 all-suite SpringHill Suites by Marriott. Also, recent plans were submitted for preliminary approvals on a four story, 150 room hotel and restaurant lo- cated in the western portion of the regional market. There has been some adverse impact from the national chain, big box retailers resurgence regionally. Finding credit wor- thy tenants for the smaller strip centers and neighborhood ‘Main Street’ retail locations has become more challenging. Many retail owners wish to be in or near the major player locations leaving the previous established sites starved for standard retail users. One as- pect that has helped this issue is the Lehigh Valley’s strong medical community and their industry inching into retail locations with convenient blood labs, minute clinics, satellite of- fices, rehab centers and dental labs/clinics. Somewhat outside the mar- gins of conventional retail yet having a strong presence in the Lehigh Valley market is the hybrid of online, cyber- store shopping. Tom Wolf, Governor of Pennsylvania an- nounced in July that Amazon would be adding a 1.1 million s/f distribution facility in the eastern portion of the Lehigh Valley. The new site will cre- ate a minimum of 5,000 new jobs. Amazon currently has a 1 million square foot facility in the western part of the Lehigh Valley with 1,600 employees. LVIA, the regional airport has seen marked growth with Ama- zon now shipping air freight in and out of the region. More than any other sector of commercial real estate re- tail is tethered in a large part to consumer confidence and spending habits. Not unlike American author and satirist, Mark Twain’s quip, “The re- ports of my death are greatly exaggerated” retail nationally and in the greater Lehigh Val- ley market are currently alive and well. Jay Haines is vice presi- dent at NAI Summit in Al- lentown, PA. n
retail mar- kets are ex- p e r i en c i ng t h e s a m e stardom as t h e e a r l y 2000 ’ s boy band N Sync. However, re- tail has gar-
Jay Haines
nered a few number one hits of its own since a near collapse in 2008; and is recovering nicely at present. Stronger consumer spending, steady economic forecasts, lower fuel costs have
3435 WINCHESTER RD, SUITE 300 ALLENTOWN PA 18104 610.264.0200 NAISUMMIT.COM
BACK ON THE MARKET! PRICE REDUCED! 1030 N West End Boulevard, Quakertown, PA
PRICE REDUCED! MIXED USE LAND! Route 443 and Mall Lane, Lehighton, PA
SITE LOCATION
BLAKESLEE BLVD
PROPERTY HIGHLIGHTS
PROPERTY HIGHLIGHTS
Commercial, Medical, Retail & Residential Opportunities
Owner Financing Available Directly on Rt 443 17,564+ VPD
Multiple Corporate Neighbors including Walmart, Lowes, Big Lots, Rite Aid and Giant
17,645 SF Building on 16.7+ Acres Directly on Rt 309 33,200+ VPD
Commercial Zoning Variety of Uses Easy Access to 309, 663, 78 & 476
Approx. 2 miles from Trainers, Quakertown and West End Shopping Centers
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Melody Lakes Golf Course
POTENTIAL COMMERCIAL DEVELOPMENT
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SITE LOCATION
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BLAKESLEE BLVD
FOR MORE INFORMATION ON THESE PROPERTIES, PLEASE CONTACT FRANK T. SMITH, CCIM, CPM, 610.871.1682
RETAIL
OFFICE
PROPERTY MANAGEMENT
INDUSTRIAL
LAND
MEDICAL
INVESTMENT
MIXED USE
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