Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/654213
T H E B O T T O M L I N E $2.2 million CBL & Associates Properties acquired the 107,000-square- foot Macy's anchor store at Cary (N.C.) Towne Center from the retailer $17.5 million Schottenstein Property Group bought Stateline Station, a 142,600-square- foot center in Kansas City, Mo., from RPAI. Anchors are Cost Plus World Market, Marshalls and Super Target $18 million PREIT sold the 57,000-square-foot Palmer Park Mall, in Palmer Township, Pa., to CityView Commercial LLC, real estate arm of the Jimmy Jazz retail chain. Boscov's and Bon- Ton anchor the center $20.5 million Cedar Realty Trust bought the 35,700-square- foot Shoppes at Arts District, in Hyattsville, Md. The center, anchored by Yes Organic Market, is the focal point of the mixed-use Arts District Hyattsville complex $23.5 million Niki Properties sold a 32,870-square- foot, single-tenant building in Culver City, Calif., leased to Sprouts Farmers Market, to an undisclosed buyer $53.6 million The Sembler Co. sold the 750,000-square- foot Oakleaf Town Center, Jacksonville, Fla., to Katz Properties for $53.6 million. The deal does not include the Home Depot and Kohl's anchors $30.9 million Vulcan Real Estate bought the 96,000-square-foot Promenade 23, in downtown Seattle, from Weingarten Realty Investors. AutoZone, Red Apple, Starbucks and Walgreens anchor the project DEAL OF THE MONTH Deal Barometer W H O I S P A Y I N G H O W M U C H F O R W H A T The open-air center sector is in robust health: At the end of the fourth quarter, the U.S. shopping center vacancy rate was just 8 percent, unchanged from the third quarter and marking the fifteenth consecutive quarter of steady or declining vacancies in the marketplace, according to Cushman & Wakefield's database of 314 million square feet of open-air centers across 65 major U.S. markets. Nearly 26 million square feet of open-air shopping center space opened in the U.S. last year, and landlords leased it quickly, with about 7.5 percent of that new space sitting vacant at year-end, according to Cushman & Wakefield. "Over half of the new development that we tracked in 2015 was in the form of expansions of existing shopping centers, typically in dominant, Class-A projects," wrote Garrick Brown, Cush- man & Wakefield's vice president of retail research for the Americas, in a quarterly report. Weingarten Realty Investors, for example, has four open-air developments under way that are more than 80 percent leased. The Houston-based REIT also has 18 redevelopment projects either recently completed or on track to be. Among open-air property types, power centers posted the lowest vacancy rate at the end of the fourth quarter, at 5.1 percent. Lifestyle centers reported a vacancy rate of 7 percent, and grocery-anchored and unanchored strip centers were at 8.7 percent. Retail property values are appreciating in the U.S. at a faster rate than other commercial real estate sec- tors, according to Moody's research. The firm reports that retail property values increased by 1 percent in January 2016 compared with January 2015. Mean- while, overall commercial real estate value declined by 0.3 percent for the month. Retail value keeps growing 62 S C T / A p R i l 2 0 1 6 S O U R C E : S & P G l O b a l M a R k E t I n t E l l I G E n C E U.S. retail properties for sale S O U R C E S : C O S t a R , C U S h M a n & W a k E f I E l d R E S E a R C h All REITs Retail REITs 1 2 3 4 5% 1Q '15 3Q '15 3Q '14 1Q '14 3Q '13 1Q '13 3Q '12 Lifestyle Power & regional Strip Neighborhood & community 69% 16% 13% 2% Same-store NOI change Big-box demand keeps open-air vacancies low