Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/390025
Florida retail development revs up Florida's retail real estate sector is on the upswing, as evi- denced by a flurry of development and redevelopment, including a new regional mall. The development surge is in response to growing consumer spending and strong leasing activity in major markets, all of which contributed to robust deal-making activity at the ICSC Florida Con- ference, in Kissimmee, in August. Today the state economy benefits from rising job levels, a rebound- ing housing market, strong tour- ism and investment spending, and robust population growth fueled in part by an influx of retirees from up north. Consumer spending grew by nearly 6 percent in the first quarter, accord- ing to the Coral Gables, Fla.–based Washington Economics Group. In fact, Florida has seen healthier employment growth than the country as a whole since April 2012, the firm says. "The major markets in Florida are back, and the recovery is trickling into smaller markets, which are trending in the right direction," said Charles Taylor, CRX, CSM, CLS, senior vice president of portfolio management at Madison Marquette Re- tail Services, Fort Lauderdale, Fla. In major markets low levels of development in recent years have combined with strong de- mand for space to put upward pressure on rents. S C T 10 S C T / O c t O b e r 2 0 1 4 T H E C O M M O N A R E A Outlet center development surging Developers are on track to open 11 outlet centers totaling more than 3.8 million square feet in North America in 2014, according to SCT's sister publication Value Retail News (VRN). In October alone, Tanger Outlets and RioCan REIT will open the 350,999-square-foot Tanger Outlets Ot- tawa, in Canada; Simon and Calloway REIT will launch the 350,000-square-foot Premium Outlets Montréal, in Canada; and Shamrock Group will open its 132,000-square- foot Outlets at the Border, near San Diego. And it's not all about new centers. Existing centers are expanding in response to tenant demand for space. 2014 will see 11 ad- ditions to existing centers. These expansions, which will average a healthy 76,473 square feet, represent a total of 841,000 square feet of new outlet space. Four of the expan- sions are 120,000 square feet or larger and four are under 30,000 square feet. Tanger Outlets is 2014's biggest ex- pander with four added phases totaling 268,000 square feet. For 2015 and beyond, VRN reports 14 expansions totaling 1.7 million square feet are due. The outlet concept is obviosuly as hot with developers and investors as it is with consumers, said ICSC president and CEO Michael P. Kercheval, at the VRN Fall Outlet Leasing & Marketing Convention, in Secaucus, N.J., in September. Sales at North American outlet centers continue to outperform traditional malls, he pointed out. "Sales today at U.S. malls are almost $480 per square foot," he said. "But look at the outlet sector. The 205 outlet centers in North America are posting $532 per square foot. In fact, since 2009, outlet industry sales have more than doubled to $42 billion in 2013 from $19.9 billion in 2009." Wal-Mart's Chinese center Walmart is developing its first community center in China, the 100,000-square-meter (about 1 million square feet) Zuhai Mall, at a cost of 600 million yuan [$97.7 million]. The project, which will include a Sam's Club, is expected to open in 2016. Wal-Mart also plans 100 additional stores in China by 2017. t a n g e r o u t l e t s o t t a w a .