Shopping Centers Today

MAY 2012

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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Market concept "is going to make or break things within the grocery industry," said Brown. And because many of the stores are occupying second-generation space, "you can't stop them," he says — an important factor given the litigiousness of Wal-Mart's local opponents. The forecast for modest growth fol- lows a year in which just over 4,000 store closings were announced, 27 per- cent fewer than the 2009 total, accord- ing to a quarterly joint report on U.S. retail real estate supply produced by ICSC Research and PNC Real Estate Research. In the fourth quarter retailers and restaurants announced nearly 900 closings, 41 percent of which were in the apparel sector, the report says. "Last year we saw a fair amount of closings, and this year we're still seeing some come out," said Keith Hamilton, assis- tant vice president of PNC Real Estate MIXED-USE DEVELOPMENT A LEADER IN At Buckingham, our in-house team has the track record and expertise required to undertake complex mixed-use development. This allows us to create and lead innovative mixed-use properties that integrate residential, retail, commercial and hospitality property types, providing benefits to all project stakeholders. CITYWAY.COM Research. "The outlook we're seeing is a return to growth, but a lot of retailers are focusing on existing stores, with ren- ovations and expanding into groceries. So they are starting to wade in a little bit, though with the exception of dollar stores, we aren't seeing the aggressive growth of the past." This is to be expected, given the Prime Central Business District Location INDIANAPOLIS, IN Vibrant new mixed-use development downtown Indianapolis Over 40,000 SF of retail space in Phase I 209 room hotel, The Alexander, managed by Dolce Resorts 250 luxury apartments Approximately 20,000 employees at 4 adjacent campuses including Eli Lilly, Rolls Royce, WellPoint, & Farm Bureau Insurance 75,000 SF YMCA with 2,000 visitors per day Nearly 50,000 employees within a half mile radius, estimated daytime work population of 120,000, and nearly one million convention delegates annually 12th largest city and ranked in Top 25 most visited in U.S. with 22 million annual visitors - home to Superbowl XLVI, Indianapolis 500, and several professional sports events Providence Shoppes Carmel, IN Upscale lofts & apartments in mixed-use development with tremendous demographics in affluent community The Cole Columbus, IN Prime Central Business District Urban mixed-use development in historic downtown, near Cummins headquarters The Avenue Indianapolis, IN Prime Central Business District High traffic location adjacent to IUPUI campus and IU Hospital BuckinghamDEVELOPMENT.com ! For More Information: " SM Get Connected facebook.com/buckinghamco @buckinghamco unbridled growth of the prerecession years and the economic pain that fol- lowed. "I think it's going to be a rela- tively unremarkable year in aggregate numbers [of store openings], and I think this is a good thing," said Korn- berg. "The industry is taking a more judicious approach to expansion and whether it is warranted, as opposed to just doing it. The economic volatil- ity would suggest that that is just not a good long-term strategy, or a short- term one, for that matter." Kornberg notes a trend toward smaller spaces, as evidenced by the likes of Best Buy and Kohl's, and also toward flexibility. "A lot of them are consider- ing opportunities that are nonprototypi- cal that they might not have opted for five years ago," he said. "Maybe they don't need 30 feet of frontage — maybe they can get by with 20 feet and spend a lot less money. There will be a lot more redevelopment of existing space and a lot less net add of new space." The best retailers understand that it is less about what they sell than about the way they sell it, Kornberg says, and points to Trader Joe's. "It is a brilliant merchant," he said. "It has figured out how to connect with its customers and keep their experience fresh and exciting and keep them coming back. The best have figured out how to use technology and social media and statistics, the entire tool kit, to drive a better experience." This is, then, a year in which quality can be expected to trump quantity — at least until the next round of frenzied ex- pansion begins. SCT 136 SCT / MAY 2012

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