A — February 8 - 21, 2013 — Mid Atlantic Real Estate Journal
www.marejournal.com
M id A tlantic R eal E state J ournal
A 286,452 s/f community shopping center developed on a 35-acre site Five additional businesses join High Real Estate Group LLC’s Mill Creek Square in Lancaster, PA
L
ANCA S T ER , PA — High Real Es - tate Group LLC an-
nounced that five additional businesses are joining its Mill Creek Square shopping center in East Lampeter Township. Tran Nailery & Spa, provid- ing superior nail care services, opened a 1,672 s/f spa in No- vember. Kiwi Yogurt, a fam- ily-owned fresh frozen yogurt chain, will open a 1,633 s/f space on January 31. Veritas Christian Bookstore will open a 3,321 s/f bookstore in Febru- ary. Honeybaked Ham, special- izing in premium handcrafted spiral-cut ham, will open a 1,955 s/f store in March. And Noodles & Company, a casual restaurant featuring Asian, Mediterranean, and Ameri- can-inspired fare, will open a 2,740 s/f restaurant later this spring. “We’re so pleased to offer this vibrant Lancaster market loca- tion at Mill Creek Square,” said H. Stephen Evans , senior vice president and managing director-retail division for High Associates Ltd. “It’s gratifying that these businesses recognize this as a great place to serve their customers.” Other stores and restaurants at Mill Creek Square Stores al- ready opened since Mill Creek EAST RUTHERFORD, NJ —On paper and on the street, New Jersey’s commercial real estate market looks to be on an upward trajectory, albeit a slow upward trajectory, with improving fundamentals in a climate of continued uncer- tainty. Four female brokers from commercial real estate services firm Cushman & Wakefield, Inc. including DawnArrabito (office), Bonni Heller (industrial), Rachel Pittard (industrial) and Nan- cy Erickson (retail) – recently weighed in on what they are seeing in their respective sectors. In the following Q&A interview, they discuss key Garden State drivers, shifts and projections heading into 2013. What top drivers are impacting the state’s com- mercial real estate sectors today? Heller (industrial): The market definitely is improv- ing, but the economy – and its impact on employment
Noodles & Company
Tran Nailery & Spa
Veritas Christian Bookstore
Square’s launch in fall 2010 include: Kohl’s; Bed, Bath, & Beyond / buybuyBABY; Christ- mas Tree Shops; Ross Dress for Less; Staples; PETCO; Red Robin; Shoe Carnival; Verizon Wireless; Sally Beauty; and Hair Cuttery. Retail development and phases Mill Creek Square is a 286,452 s/f community shop- ping center developed on a 35-acre site situated along the established commercial cor- ridor of Lincoln Highway East Phase I: 230,818 s/f opened fall 2010 Phase II: 55,634 s/f opened summer 2011 Phase I of Mill Creek Square is 99 percent leased; overall with Phase II the shopping center is 91 percent leased. Op- portunities remain for a junior and housing, especially – continues to hamper a true industrial recovery. People need incomes and homes in order to buy goods and fur- nishings. Until the economy picks up, consumer demand for the products contained in New Jersey’s warehouses will remain lackluster. Arrabito (office): For the of- fice market, state incentives are playing a major role in attracting tenants to New Jersey. This is particularly true in our cities, where the Urban Tax Hub credit can be cited as the catalyst for high-profile projects like the new Panasonic headquar- ters, under development by Matrix and SJP Properties in Newark. Erickson (retail): Market density and traffic drive to- day’s retail tenants. As such, companies coming into or expanding in New Jersey are targeting highway locations and grocery-anchored centers in highly populated areas. On
anchor of 10,331 s/f and small shop spaces of 1,534 to 2,110 s/f, with assemblage of space possible up to 7,000 s/f. Project leadership Mill Creek Square is a de- velopment of High Real Es- tate Group . High Real Estate Group is the co-developer of High Pointe Commons in Har- risburg and York Town Center in York. HighAssociates Ltd. is the managing agent for Mill Creek Square. Additional High Real Estate Group affiliates Greenfield Architects Ltd. and High Construction Com- pany are providing the proj- ect’s design and construction. Financing has been provided by Integrity Bank. Location and trading area The site forMill Creek Square is situated along the estab- lished retail corridor of Lincoln What do you see as your sector ’s most notable “event” in 2012? Arrabito (office): My an- swer again is going to take an urban spin. In November, 744 Broad in Newark traded following a few years without much investor movement in that city. For me, this is ex- citing because it shows that changes really are happening there. Between stepped-up of- fice investment, development and tenant movement, it is becoming clear that Newark is emerging as a preferred place for business. Erickson (retail): The grow- ing alternative use of re- tail space certainly is worth highlighting. Landlords love bringing in non-traditional tenants like urgent care clin- ics and dentist offices. My team currently is represent- ing three centers for which the owners have asked us to
Highway East (US Route 30) in East Lampeter Township, Lancaster County. Mill Creek Square offers high-quality, value-oriented shopping to the community for the benefit of residents living in the eastern portion of the County who want the convenience of closer-to- home shopping, and from a regional shopping perspective, the center complements the outlet shopping experiences available in this area, as well as other national value-oriented retailers who have wisely posi- tioned themselves here. Overview/description of the area Mill Creek Square is in the heart of the value-oriented re- tail concentration in Lancaster Country situated between the Rockvale Square and Tanger Outlets, and near other domi- Pittard (industrial): With lower industrial vacancy rates, confidence in rising rental rates and optimism about consumer activity, speculative big box construc- tion has returned to New Jersey. Five construction projects have broken ground ranging from 200,000 to 878,000 s/f. How has the landscape changed over the past 18 months? Erickson (retail): Retail fundamentals remain rela- tively flat in New Jersey. That said, the disappearance of larger tenants marks a significant change. On the other hand, smaller, largely franchised concepts with requirements of 1,500 to 4,000 s/f are eagerly seeking space. In turn, landlords are becoming more open to fill- ing vacancies with multiple replacement tenants. Heller (industrial): Indus-
nant value-oriented retailers such as Target, Wal-Mart, Cost- co, and Best Buy proximate to the confluence of US Route 30 and Routes 23 and 222 as well as I-283. It is ideally situated for retailers seeking to serve the nearby neighborhoods, the immediate trade area of the Eastern portion of the county, and a far-reaching regional trade area. Noodles, a Denver, Colo.- based casual fare restaurant, rises on the pad site by the entrance to Mill Creek Square shopping center in Lancaster. Tran Nailery & Spa opened its Lancaster location at Mill Creek Square shopping center in November, 2012. Mill Creek Square shopping center, in Lancaster will wel- come Veritas Christian Book- store in February. n trial developers and owners are looking more closely than ever at maximizing their properties. Some are upgrading and modernizing to improve competitive po- sitioning. Others, with older properties that have become functionally obsolete, are exploring reuse. To that end, we are seeing a real increase in industrial-to-data center and industrial-to-residential conversions in the region. Arrabito (office): The most dramatic change in the office sector involves its transfor- mation from a tenant-driven market to a landlord-driven market. For the past several years, property owners did everything in their power to secure long-term commit- ments. Recently, we have been seeing more landlords opting for – and even insist- ing on – shorter-term deals, with the expectation that within a couple of years they will be able to leverage rising rental rates. n
Cushman & Wakefield brokers weigh in on NJ market sectors the other hand, properties situated off the beaten path continue to struggle. pursue healthcare-type space users.
Made with FlippingBook - professional solution for displaying marketing and sales documents online