M id A tlantic S hopping C enters S potlight R etail E xperts By Steven M. Duffy, Cuhaci & Peterson Architects Grocery has evolved and it’s not the same old center
Real Estate Journal — Shopping Centers — March 27 - April 9, 2015 — 7A
www.marejournal.com
ture of the competitive l ands cape , several sec- tors continue to decrease their need for floor space. One notice- able casualty W
ith the evolving state of retail and the disruptive na-
One example of this type of scenario is visible when examining the closing of sig- nificant numbers of Office Depot and Staples locations; a large amount of 20K+ boxes are now available on the mar- ket. Popular smaller format specialty grocers such as The Fresh Market, Trader Joes and Aldi are starting to be- come some of the beneficiaries of this shifting marketplace. However, implementing a new grocer requires some special infrastructure considerations that fall into a distinct set of operational needs and likely have not been entitled within the centers original approv- als. Issues such as receiving fresh daily deliveries, power
needs, added HVAC loads, exhaust and fresh air control typically drive the planning process. This usually triggers a re-approval process and go- back to the authority having jurisdiction. However, when compared with the process of a ground up project, those is- sues become speed bumps on a fairly smooth road. As well, grocery provides a compelling draw to a center, driving retail synergy and potentially creating an en- ticing opportunity for other complementary tenants. As developers refine their portfo- lios, adding a grocery anchor to an underperforming center may be the answer to improv- ing their tenant mix. While
not a new trend, grocers today increasingly seek to present a fresh and healthy image, ide- ally beginning curb side; this can translate to a new, fresh look for the entire center. Ad- ditionally, as grocers also seek to promote prepared foods, outdoor seating becomes a needed supporting amenity. Both of these elements pres- ent operational benefits and challenges that require again a deft hand during the entitle- ment process. It also behooves the grocer to be engaged ac- tively in the approvals, typi- cally necessitating operational commitments by the authority having jurisdiction and land- lord. Moving forward developers
may, more than ever, consider grocery as an opportunity for adaptive retail uses. It will be interesting to watch the evolu- tion of the many vacant spaces in today’s market, as they are modified to meet the needs of an ever-changing retail land- scape. Steve Duffy is vice presi- dent of grocery at Cuhaci & Peterson Architects. As an architect and design pro- fessional, Steve has over 30 years of national retail focused experience, spanning Big Box to Boutiques. His work has encompassed every facet of grocery and retail design; highlights include store devel- opment programs, prototyp- ing, and brand reinvention. n
Steven M. Duffy
of the competition today has been office supply retailers. With this shrinking market and the influence of multi- channel retailing, less gross leasable area is needed in this sector, providing grocery anchors leasable space not previously available.
Lombardi of Marcus & Millichap arranges the sale of a 11,348 s/f retail property $2.7 millon West Orange, NJ
WEST ORANGE, NJ — Marcus & Millichap, one of the leading commercial
real estate investment services firm with offices throughout the United States and C a n a d a , announced the sale of a
Michael Lombardi
11,348 s/f, retail and office building located at 640-642 Eagle Rock Ave. in West Orange, according to Brian Hosey , regional manager of the firm’s New Jersey office. The asset sold for $2.7 million. Michael Lombardi, vice president investments in Marcus & Millichap’s New Jersey office had the listing to market the property on behalf of the seller, a private
640-642 Eagle Rock Ave.
investor. The buyer, a pri- vate investor, was secured
and represented by Michael Rothstein , a senior associate
in Marcus &Millichap’s Man- hattan office. The buyer was
executing a 1031 exchange and closed all cash. n
Inside Faith Hope Consolo, Douglas Elliman Real Estate ��������������������������������������������������������������������������������������������������������������������������������� 8A Bennett Williams Realty, Inc.���������������������������������������������������������������������������������������������������������������������������������������������������������������� 9A Dan Haer, Retail Store Painting �����������������������������������������������������������������������������������������������������������������������������������������������������������10A Jesse Tron, ICSC ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 12A
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