Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/827208
vantage of historically low cap rates, according to a Boulder Group report in April. Many such buildings get snapped up as soon as they are built. National Retail Properties a REIT specializing in triple-net retail and restaurant buildings in 47 states, reports that it ac- quired 313 net-leased retail properties last year, in a company record $847 million investment. Craig Macnab, who was CEO of National Retail Properties until his retirement in April, told investors in a fourth-quarter 2016 earnings call: "Our strategy continues to focus in on what we think of as small-box retail." Though CVS, Walgreens, banks and others with a stable national presence have been drawn to the triple-net format of outside ownership for years, more retailers and restaurants are embracing it now, including Burger King, Dollar General and Panera Bread. To address the demand, landlords are in many cases replacing excess parking space with stand-alone pads, says Skrbin. "A lot of food and small-shop tenants can get lost in the shuffle in-line, and those locations give them better visi- bility and easier access, so there's increased demand," she said. In the restaurant sector, much of the construction growth is coming from chef-driven and quick-service restaurants, ac- cording to Lambert. Retail research analytics firm NPD Group, is predicting a 2 percent growth rate loss this year for full-ser- Contact Spencer Phelps, Kimco Realty Corp. (407) 302-6518 | sphelps@kimcorealty.com The Smartown Is Born. If you believe in the power of big ideas, you'll get the point – Dania Pointe. We've not only stepped outside the "box," but we're taking a giant leap ahead of the competition by creating a South Florida destination that takes full advantage of emerging smart technologies. It's for savvy leaders like you who know people now want to live, work, shop, and dine in the same playground. It's the smart home for smart brands – right on I-95, in the middle of the Ft. Lauderdale market. DaniaPointe.com vice restaurants, but a 1 percent gain for limited-service chains. Entertainment concepts, fitness clubs and food halls are also doing exceptionally well, both as replacement tenants for big- box vacancies and in new construction, Lambert notes. Two in- dustry polar opposites — luxury retailers and value retailers — seem destined to do well and expand too, "but it's the middle that's taking the beating," Lambert said. Midprice grocery and apparel stores and do-it-yourself home and office-supplies stores will probably continue to con- tract, according to The Retail Coach, a retail consulting, recruit- ment and market research firm. But expect a construction spike among drugstores, thrift stores, fast-food restaurants, dollar stores and other value retailers and trendy street brands, the firm says. Going forward, observers paint a mixed picture that none- theless leans positive. "Construction is still well below prere- cession levels," Lambert said, citing the 188 million square feet of retail that got built in 2006. But even so, and all the media talk about some supposed brick-and-mortar apocalypse notwithstanding, many expanding brands and concepts out there continue to seek top-quality new or redeveloped retail space as they grow. In Skrbin's words: "I have a list of 300 tenants who are expanding." n