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Real Estate Journal — Spring Preview —April 26 - May 9, 2019 — 15C
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N ew J ersey R etail B roker By David Townes, Cushman & Wakefield
Dining, personal services, fitness tenants lead the pack in New Jersey retail leasing
retail prop- erties, din- ing, personal services and fitness are among t o - day’s most d e s i r a b l e categories. Fortunate- W
hen it comes to cre- ating co-tenancies that drive traffic to
units between 5,000 and 7,000 s/f and focuses on wellness, personal training and body conditioning. Chain andmom- and-pop studios specializing in pilates, yoga and cycling, among others, are popping up everywhere as well. All of this is good news for well-located traditional shop- ping center sites, as these ac- tive tenants seek locations of- fering visibility on roads with strong daily traffic counts. Properties in the highest de- mand sit on main streets and regional highways, provide attractive storefronts and
desirable, stable co-tenancies (as always, a grocery or other big-box anchor is a huge draw – for smaller tenants, espe- cially). Here in New Jersey, parking is a big consideration, and properties with easy, open parking fields have a competitive edge. On the landlord side, prop- erty owners are working hard to make their retail sites attractive and relevant in today’s market. This includes an emphasis on curb appeal and redeveloping spaces that may previously have been occupied by a big-box tenant.
Many are turning larger va- cancies into multiple spaces to accommodate junior an- chors and smaller tenants – at a time whenmany retailers are right-sizing and working to maximize efficiencies. Property owners also are ex- ercising more flexibility when it comes to vetting tenants. This results directly from a new crop of entrepreneurial brands that have achieved local and regional followings, and are expanding success- fully. While national credit tenants are always going to be attractive as leasing targets,
smart landlords know that these emerging niche players add flavor and draw for their centers. We anticipate the trends that have launched 2019 as a year with great potential will continue in the coming months. Watch for property owners and tenants alike to seek competitive positioning in New Jersey and through- out the larger Mid-Atlantic region. David Townes is a direc- tor at Cushman & Wake- field Retail Brokerage in East Rutherford, NJ.
David Townes
ly, they also are among the sector’s most active space users to date in 2019, and tenant and landlord repre- sentatives here in New Jersey are seeing a great synergy emerge as consumers seek both shopping convenience and variety. Strong restaurant demand among brands new to and expanding in the regional market continues unabated. Our team has been fortunate to spearhead a range of din- ing leases to date this year, and our activity reflects a new level of diversity. From national brands like popu- lar doughnut brand Krispy Kreme, to regional chains like café/bakery Dulce De Leche, to expanding local mom-and- pop businesses, these tenants are serving as “internet- proof” place makers for the retail properties they occupy. The same holds true for personal services, where bou- tique concepts have become sought-after shopping center additions. Again, diversity is a common theme. Our recent leasing has involved tradi- tional salons like Moxie Blow Dry and Beauty Bar; special- ized concepts like Sport Clips, which caters to men and boys; and local businesses like Muah Makeup & Lash Bar. We also are watching with interest the emergence of brands offering co-working space for hair stylists and other beauty professionals. Among them, our client Phe- nix Salon Suites is expanding rapidly in the region and just signed on for its first two loca- tions in New Jersey. And in the fitness sector? Variety again prevails. Big box players are still finding opportunities. However, this popular category is becoming far more specialized and with awider range of space require- ments than in the past. Con- sider Anytime Fitness, one of the world’s fastest-growing gym franchises, which targets
WHAT’S NEXT INRETAIL
Fueled by ideas, expertise, and passion across borders and beyond service lines, our Cushman & Wakefield Retail professionals create dynamic solutions to prepare investors and occupiers for what’s next. Our understanding of a shifting retail landscape coupled with local market perspectives provide insight into current conditions, trends and strategies. From physical and experiential, to supply chain and distribution, we keep the pulse on the evolving consumer experience to oer unparalleled expertise. Let us harness the power of real estate on your behalf. Fueled by ideas, expertise, and passion across borders and beyond service lines, i l i l i ’ . i i i il l i i i i i i i , . i l i i l, l i i i i , i ll l i . l l .
DAVID TOWNES +1 201 508 5268 david.townes@cushwake.com i . .
ALANA FRIEDMAN +1 201 508 5258 alana.friedman@cushwake.com 1 l . i .
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