Real Estate Journal — Shopping Centers — June 23 - July 13, 2017 — 11A
www.marejournal.com
M id A tlantic
S hopping C enters
Expert panel discusses impact of current trends on CRE industry NAIOP NJ Chapter meeting examines “The Rise of Experiential Retail”
EANECK,NJ —While the future of brick-and- mortar retailers is de- cidedly uncertain, undesirable locations are likely to suffer as the market transforms, while well-located properties that can attract “experiential” retailers will thrive. This was one of the key take- aways shared by industry ex- perts at NAIOP NJ’s June 6 chapter meeting, held at the TeaneckMarriott at Glenpointe. Led by Rockefeller Group’s Clark Machemer , the panel discussion focused on current retail trends, in particular the shift to “experiential retail” and its impact on commercial real estate development as well as opportunities for investors. “We are hearing a lot of talk about how traditional retail is dying,” said Machemer. “As developers and property owners struggle to determine the right mix of retailers, store sizes and formats, how can brick-and- mortar stores evolve to compete in today’s omnichannel world?” “We wouldn’t agree that re- tail is dying, but it’s definitely changing,” said Herbert Eil- berg , chief investment officer at Urban Edge Properties, whose company spent $500 million over the past six months buy- ing shopping center properties in northern New Jersey and the New York metro area. “The projects we’re interested in are necessity and value driven, and we’re looking at how we can complement them by adding to the experience. The word we like to use is engagement. Are we engaging the consumer?” Millennials Continue to Drive Decision Making Nancy Erickson , executive managing director with Col- liers International , cited the continued dominance of Millen- nials as the key decision-makers in terms of what’s next in retail. “We’re following their lead and focusing on tenants that offer something they can’t do on Ama- zon while they’re watching TV,” she said. “This includes restau- rants, discount fashion retail- ers and entertainment such as luxury dine-in movie theaters. Fitness and medical services, such as urgent care centers and medical spas, are also growing”. Erickson noted that food was “the number one discussion” at the recent International Coun- cil of Shopping Centers (ICSC) conference in Las Vegas. “We all want good food and we’re looking for something unique. Although T
and mixed-use projects.” Mark Pottschmidt , co- founder of Stanbery Devel- opment , agreed that food is replacing fashion as a key driver of foot traffic to the com- pany’s retail lifestyle centers and mixed-use projects. At Stanbery’s planned mixed-use project in Parsippany, he said, “We expect 30 to 40% of the tenants to be food operators ranging from fast casual to white table cloth. Amenities on the ground will drive demand for the apartments above.” Capital is Finding Quality Brian Whitmer , senior
director Metropolitan Area Capital Markets Group with Cushman & Wakefield, said investors have returned after a lull that resulted from un- certainty over interest rates and the new administration. “We’re seeing the capital and buyers come back into the market, and the interest is in quality retail properties with good tenant mixes,” saidWhit- mer. “Sellers are starting to become more active, and many of them have been looking at strategic dispositions of non- core, secondary and tertiary assets.” n
Shown from left: Herbert Eilberg (Urban Edge Properties), Nancy Erickson (Colliers International), Mark Pottschmidt (Stanbery Development), Brian Whitmer (Cushman & Wakefield) and Clark Machemer (Rockefeller Group)
national chains will do well, it’s the out-of-the-box restaurants
that are going to influence devel- opment both in shopping centers
Principals Michael J. Acquaro-Mignogna, MAI, AI-GRS Gary E. Heiland II, MAI, AI-GRS
Associates Julie E. Route, MAI Brian D. Conner, MAI Christopher K. Bourland, MAI Michael C. Jarrell Jenise B. Cox Lawrence B. O’Brien
David O. Rochkind Patrick W. Cullen Lydia J. Nagy Thomas S. McDonough
Providing Real Property Valuation and Consulting Services in Pennsylvania, New Jersey and Delaware
Recent Retail/Commercial Assignments
48,000 sf furniture store Allegheny County, PA
Four commercial condos Hudson County, NJ
7,000 sf drug store York County, PA
21,000 sf neighborhood center Lancaster County, PA
64,000 sf retail building Cumberland County, PA
127,000 sf big-box retail building Montgomery County, PA
26,000 sf automobile dealership Dauphin County, PA
5,500 sf restaurant Bucks County, PA
Office Locations York, PA (Central PA) ● Wayne, PA (Suburban Philadelphia) ● Pittsburgh, PA www.mvginc.com
Made with FlippingBook Online newsletter