Shopping Centers Today

MAR 2017

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

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34 S C T / M A R C H 2 0 1 7 Grocery anchors in all manner of open-air centers will be- come even more common, according to consultant Jan Rog- ers Kniffen, CEO of J. Rogers Kniffen WWE. "That's more of a reaction to the failure of department stores to continue to drive traffic, not a love of grocery," said Kniffen. REIT operators have "become agnostic" about anchor space, he says. "There was a time when mall owners and operators only wanted de- partment stores for anchors, but now they look for any concept that can occupy a big-box space and drive traffic." Organic and specialty grocery stores remain in growth mode, in part because of the enhanced health awareness among Americans that stems from rising health care costs, says Beasley. Indeed, Whole Foods, Trader Joe's and other spe- cialists are showing up in shopping centers that never had grocery stores before, according to JLL's Kaplan. In metro Orlando the growing numbers of homes and tourists have spurred plans for a 43-acre, grocery-anchored big-box center in Kissimmee, developed by Orlando-based Intram Investments. Sunrise City Plaza, on West Osceola Park- way, will contain grocer Publix, plus a Ross Dress for Less, a T.J.Maxx and some full-service and fast-casual eateries. Horne Properties has been trying to get its Costco-an- chored Okatie Crossing off the ground for nearly 10 years. This is a 280-acre development planned along U.S. 278 in Hardeeville, S.C., near Hilton Head. But Horne has been de- layed as anchors wait for the developer to build connector roads that are contingent on city funding that, in a catch-22, cannot be awarded until the project is done. Several smaller open-air projects have been approved, in- cluding a 37-acre hybrid power-lifestyle center at the 235- acre Tomoka Town Center, in Daytona Beach, Fla. North Amer- ican Development Group will build a 300,000-square-foot retail center there, just east of a new, 80-store Tanger Factory Outlet. Back in Texas, San Antonio–based grocery chain HEB will anchor a 240,000-square-foot center on 34 acres along U.S. 287 in Mansfield, north of Arlington. Construction is to start by 2019. In Riverton, Utah, near Salt Lake City, Center- Cal Properties is developing an 85-acre, open-air, mixed-use lifestyle center with retailers, restaurants, offices, a hotel and a luxury movie theater. The preferences of the Millennial generation are a big factor driving the reinvention of open-air lifestyle shopping centers as wining-and-dining hubs, according to Kniffen. "They are more interested in doing things than owning things," he said. "And, particularly, they're more interested in going out and having drinks and dinner with friends." A significant amount of open-air construction is being done in the form of additions to enclosed malls. Simon's Sawgrass Mills, in Sunrise, Fla., one of the largest enclosed shopping cen- ters in the country, recently enhanced its outdoor experience by bringing in a line of luxury tenants to its Colonnade Outlets expansion, which has a streetscape design. "The addition adds tremendous value and horsepower," said Duckworth. n a giant urban project, Westfield says it will demolish its struggling, 44-year-old, enclosed Promenade mall, in Los Angeles' Warner Cen- ter, in favor of a massive open-air complex with retail, up to 1,500 homes, a concert venue, offices, a grocery store and hotels. This $1.5 billion project, tentatively called Prom- enade 2035, will be an extension of sorts of Westfield's new open-air Village at Topanga lifestyle center. Phased construction is to be- gin by 2021 with a target completion date of 2035, as the tentative name suggests. The goal is to transform the prop- erty "into a community destination that allows people to live, work and play all in one area," according to Larry Green, a Westfield senior vice president. One thing spurring these urban retail projects is when people living in an urban core travel outside to work. Mur- ray says development will grow into next year, but a cyclical slowdown will emerge by the year after. "We don't have that boom-and-bust situation that was present in the past de- cade," he said. "When the slowdown ultimately comes, it's not going to be a repeat of what we experienced in 2009." n Legacy West offers 90 places to shop and eat, including a food hall, plus apartments, offices and a movie theater

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