6B — November 28 - December 11, 2014 — Shopping Centers — M id A tlantic
Real Estate Journal
www.marejournal.com
S hopping C enters
By Chuck Lanyard, The Goldstein Group Oh what a year 2014 has been for retail real estate
T
he 2014 comeback in retail real estate has been monumental.
harder to find and asking rents continue to steadily rise. In the important retailmarkets ofNew Jersey and New York, vacancy rates have fallen below the 6.2% range for the first time in over 6 yearswhenvacancy rates of over 8.5%ormorewere the normjust 4 years ago. It is interesting to see how a recession impacts on our retail spending habits. During a re- cession we shop differently. We allocate out disposable income adversely andundeniably spend less. We hold off on major pur- chases and items like furniture, appliances, beds, mattresses,
clothing and electronics don’t get replaced as quickly as they do in good times. As soon as we come out of a recession, so do the consumers as they come out to shop. Consumer confidence, along with lower unemploy- ment, have sparked a surge in consumer spending. This surge has created the demand, once again, for quality retail space. All these factors have made for a very brisk and fast recovery. A prime example of the turn- around is in the Paramus, NJ market, which boasts the high- est retail sales than any other zip code in the US and for
where we have seen retailers take spaces in all sizes. Located just 15 miles west of the George Washington Bridge, Paramus has 5 major malls, large big box centers, a huge number of retail buildings with multiple tenants, and many single ten- ant locations as well. It also has two major highways, each with approximately 140,000 vehicles a day converging on an inter- section of over 310,000 vehicles daily. Almost all of the vacant big box spaces have been leased in the past year alone while smaller spaces under 10,000 square feet have been gobbled
fiercely. Now quality space is at a premium and rental rates are much higher too. Where this recovery takes us into 2015 will be quite interest- ing. There are some who say this retail recovery has made a comeback far too quickly where wewill, “burn out” and ease into a much slower rate of growth by mid-2015. Others feel there is still much demand for re- tail availability and there soon won’t be enough space to meet the continuing demand as very little new retail space is under construction throughout the northeast. One thing is certain-- tenants will still come and go. As we see retailers announce numerous store closings, there are always replacement tenants waiting in the wings to take the spaces. Internet sales will also create retail spaceavailability, as some retailers will be downsizing store sizes likeStapleshas done. 2015will probablybeabench- mark year in retail and will likely be the defining year in ascertaining whether all this remarkable retail growth can continue for years to come. Stay tuned. We are in for an interesting year ahead. Chuck Lanyard is presi- dentofTheGoldsteinGroup and has 35+ years of experi- ence. n Equity Retail Brokers completes 5,019 s/f in leases
The speed in which we saw theretailmar- kets tumble 5 years ago in the throws of a recession, has only been matched by the incredible
Chuck Lanyard
pace that store spaces are be- coming rented as retailers grab available space. It’s a landlord’s market again as quality re- tail space is actually becoming
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Eagle Village Shops
WAYNE/RADNOR, PA — David Goodman of Equity Retail Brokers recently com- pleted three lease transactions totaling 5,019 s/f at Eagle Vil- lage Shops on the Main Line in Wayne/Radnor Township. Goodman represented the landlord and secured two new tenants and one lease renewal. Pure Barre, a total body work- out studio that has more than 200 locations across the nation, renewed their lease at Eagle Village Shops. Lace Silhouettes, a 780 s/f intimate apparel store, andHand&StoneMassage and Spa, a 2,975 s/f massage and facial spa, joined the center. n
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