Watch Out for These 8 Retailers — They’re Ready to Grow in The U.S., by Lauren Thomas, CNBC
“Big brands like Toys R Us and Bon-Ton liquidating their businesses might paint a gloomy picture for the retail industry, but smaller brands say there couldn’t be a better time to grow. Direct-to-consumer businesses like Bonobos and Warby Parker have paved the way from online stores to bricks and mortar. Others are following — in droves — and could help fill the glut of vacant real estate on the market in the U.S. Like Warby Parker and Bonobos, these up-and-coming brands are being cautious, opening locations at a measured pace and setting up primarily where they have large followings online. In turn, mall and shopping center owners are all vying for their business. But many upstart retailers are also generally tougher negotiators than traditional ones and come to real estate owners with unique requests as the companies map out growth.”
More Developers, Investors Turning to Parking as an Industrial Product Type, by Chuck Sudo, Bisnow
“Tom Barbera formed Industrial Outdoor Ventures in January 2017 with one goal: to carve a niche within industrial real estate from truck and trailer lots, container yards and freight terminals. The assets he is considering are parking only — no property on-site beyond maybe some truck repair services — often where access to warehouses is short. Trucks from haulers and shipping and logistics companies can park there short or long term. After nearly 18 months, Barbera’s confidence in the product type has begun to pay off. IOV has acquired nine assets in Atlanta, Chicago, Dallas, Houston and Denver, totaling $60M in deal volume, a solid start toward his long-term goal of controlling $500M in assets within five years. IOV is one of a growing number of investors looking at parking for industrial payoff. While the overwhelming majority of investor and end-user demand in industrial is for warehouses, parking for trailers and container bays has the potential to become favored by the mass of investors entering the industrial sector looking for opportunities. Barbera said e-commerce usage puts more stress on the supply chain, making truck and trailer parking favorable because these assets indirectly support warehouses and distribution centers — these lots connect the end points in the supply chain.”
U.S Mall Owners Look to Apartments and Hotels to Replace Sears and JC Penney, by Lauren Tomas, CNBC
“Mall owners are still grappling with how to fill those spaces being vacated by department store chains like Sears and J.C. Penney. It’s no easy task and remains one of the biggest questions in the retail real estate industry today, Dirk Aulabaugh, managing director of Green Street Advisors’ advisory and consulting group, told CNBC at the annual ICSC RECon event held in Las Vegas this week. The fact of the matter is, filling in the gaps takes time, years even, he said. And there aren’t “cookie cutter” solutions. Still, mall owners need to be on their toes now more than ever, especially in light of a potential asset sell-off at Sears and an unexpected CEO departure at J.C. Penney. CNBC reported earlier this year that 2018 is set to be a record year with respect to the amount of retail square footage going back on the market.”
Developers Are Bringing Crystal Lagoons Amenities to U.S. Multifamily Communities, by Mary Salmonsen, MultiFamily Executive
“U.S. developers are dipping their toes into an amenity that’s been popular in other countries for years: large-scale, man-made water features. Earlier this year, Metro Development Group unveiled a long-awaited, landmark amenity at its Epperson community in Wesley Chapel, Fla. The 7-acre artificial lagoon, newly filled with 11 million gallons of fresh water, is the first of its kind in the U.S. Suitable for swimming, boating, and other nonmotorized water activities, the lagoon will be the centerpiece of the community’s amenity village and beachfront area. While the man-made lagoon from Chile-based Crystal Lagoons is a new concept to American consumers, it won’t be for long. Epperson represents the crest of the tidal wave, so to speak, in the trend toward massive water-based amenities. It is one of 140 such lagoons now in the planning, design, or construction stage in U.S. residential developments, both single- and multifamily. Developers and builders say that while the lagoons come with a high price tag—an estimated $600,000 to $650,000 per acre—they’re worth it for the attention they bring.”
Creative Leasing Solutions, Thinking Outside The Box, by Natalie Dolce, GlobeSt.com
“Shopworks Inc. president Sharon Leoff says that in a consumer market driven by Millennials, it is crucial that retailers not only produce and supply the products popular with the generation, but to also design stores with this influential client in mind. As leasing managers seek more inventive methods to reduce vacancies and increase NOI, more properties are engaging non-traditional tenants and are thinking creatively about how they can make the best use of their property’s space. So says Sharon Leoff, president of Shopworks Inc., based in Scottsdale, AZ. Leoff held a workshop course at ICSC RECon 2018 on who non-traditional tenants are, how to engage them, the best leasing structures, and innovative ways to make the best use of a retail center’s space. ‘In our changing world of malls, leasing representatives need to be thinking outside of the box,” she said. “Each type of center has a different priority, different space that can be utilized uniquely. And when you look at each type of center, each offer different opportunities and challenges.'”