Staying on Top of Things
The outlook for every retail property type is bright.
The good news is that no matter what kind of retail property type you specialize in, there are reasons for optimism.
Regional malls — once thought a dying concept — thrived throughout the downturn. And now new users of large boxes have taken an interest malls, sopping up space left vacant by department stores in the process.
Open-air shopping centers, often called recession proof, did well throughout the downturn. Yet there's still enough upside that Centro Properties Group's massive U.S. portfolio proved to be an irresistible draw for private equity giant Blackstone Group. No one is quite sure what it will do with the assets. But the firm has an uncanny knack for timing the market just right.
Meanwhile, with consumers' continued desire for value, outlet centers are becoming a popular property type for regional mall owners to branch out into.
Lifestyle centers had a tough go of it during the downturn. But backers of the concept think it still has legs. Owners and managers need to learn from missteps and they must adapt and evolve to succeed going forward, but lifestyle centers still have a future.
And power centers — pummeled by big-box closures and bankruptcies — had begun to rebound throughout the second half of 2010. The Chapter 11 filing by Borders raises new questions for the format, but many think the recovery may only be paused a bit by the latest development.
There are still questions and challenges for owners of all property types. But by and large fundamentals are improving. Tenants are signing leases. Occupancy rates are rising. There is little development occurring, which means that demand is all going towards backfilling empty slots at existing centers.
In the following series of features, we examine what's going on with the various kinds of multi-tenant retail properties. And some pieces look at property management trends in security, energy management and dealing with distressed assets.
Plus, of course, our popular annual feature — the rankings of the top owners and managers — leads off this comprehensive package covering all the ins and outs of the ownership and management of retail real estate. We hope you enjoy the pieces.
Supermarkets, Fitness Centers & Theaters All Serve as Alternate Anchors for Regional Malls
Apr 6, 2011 8:10 AM, By Elaine Misonzhnik
In the quest for alternate anchors, regional mall owners and managers have turned in new directions....
Blackstone’s Centro Grab Marks a Turning Point in the CRE Cycle
Mar 1, 2011 12:42 PM, By Elaine Misonzhnik
Blackstone's acquisition of Centro's U.S. portfolio is being hailed as a sign that the commercial real estate market has turned a corner....
The Pace of Retail Development Remains Anemic
Feb 9, 2011 8:27 AM, By Elaine Misonzhnik
In spite of a surge of new project announcements, the retail development pipeline remains relatively dry. ...
Lifestyle Centers Evolve and Adapt to Stay Afloat
Mar 31, 2011 12:10 PM
Backers of lifestyle centers are rethinking tenanting strategies and wrestling with other challenges. ...
Borders Bankruptcy Shines Light on Continued Weakness of Power Centers
Feb 16, 2011 10:36 AM, By Elaine Misonzhnik
Borders bankruptcy--and the resulting store closures--strikes another blow against power centers....
Building Tension
Mar 1, 2011 12:00 PM, By Elaine Misonzhnik
In recent weeks, developers have announced plans to build a fortress mall in New Jersey, a large mixed-use center in Boston and dozens of smaller grocery-anchored...
Sophisticated Security Drills Help Some Mall Owners and Managers Prepare for the Worst
Apr 7, 2011 2:08 PM, By Elaine Misonznik
Running coordinated and complex drills with first responders helps mall managers prepare for security threats....
Retail Center Owners Take a More Active Approach to Energy Management
Apr 14, 2011 11:37 AM, By Jennifer Popovec, Retail Traffic Contributing Writer
New advances in lighting are helping managers and owners cut energy costs....
Retail REO Expert Provides Tips for Dealing with Distress
Feb 8, 2011 11:28 AM, By David Bodamer
Levin Management's Robert Carson shares tips on managing distressed retail real estate properties....
