Shopping Centers Today

OCT 2018

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

Issue link: https://sct.epubxp.com/i/1028645

Contents of this Issue

Navigation

Page 7 of 59

8 S C T / O C T O B E R 2 0 1 8 T H E C O M M O N A R E A T R A N S AC T I O N S L imited new development will help spur healthy rent gains in the second half, according to a Marcus & Millichap midyear outlook report. For this year, Marcus & Millichap is projecting that U.S. retail developers will open some 54 million square feet of new retail space, the lowest amount since 2013. Last year they opened about 67 million square feet of new space. "„e slowed pace of development can be partially attributed to stricter lending practices, as loan originators remain relatively cautious while they watch the retail sector evolve," said Scott M. Holmes, a Marcus & Millichap senior vice president who directs the national retail group. "„is cycle's lending behavior is vastly diˆerent than the previous one, in which originators' practices were quite liberal." „en, too, more retailers are moving into existing vacant space, dampening demand for new construction, he says. „is reserved development environment has helped nurture ever-stronger occupancy levels. Marcus & Millichap anticipates that the national vacancy rate will hit 4.9 percent this year, the lowest level since 2001. „at would be a 10-basis- point vacancy decrease relative to 2017. Strong retail sales growth on elevated consumer conŒdence has prompted many retailers to ramp up expansion eˆorts, the Œrm says. High occupancy levels and fewer new developments will allow landlords to boost rents by 3.2 percent, to an average of $19.89 per square foot this year, Marcus & Millichap is forecasting. „ese healthy fundamentals notwithstanding, investors are wary of an evolving industry and are likely to refrain from large deals, Marcus & Millichap reports. Instead, they will funnel their funds into assets in the $1 million to $10 million range, the Œrm says. Nationwide, dollar volume has decreased for each of the past three years, and Holmes says this year will probably be no exception. Q $37.8 million New Market Properties LLC, acquired Neapolitan Way Shopping Center, a 136,600-square- foot center in Naples, Fla., from Tramell Crow. Publix and Walgreens anchor the center D E A L B A R O M E T E R A L O O K A T S O M E O F T H E P A S T W E E K ' S R E T A I L $14.7 million A San Diego–based investor purchased Laguna Village, a 102,000-square- foot, church- anchored center in Chandler, Ariz., from a private investor. SRS Real Estate Partners represented the buyer $15.6 million Benderson Development Co. acquired a 44,300-square-foot former Toys 'R' Us and Babies 'R' Us store in California, straddling Emeryville and Oakland $16.3 million PacWest Management acquired Northridge (Calif.) Promenade, an 89,500-square- foot center anchored by a Guitar Center store and about 25 other tenants $16.7 million RCG Ventures purchased Grandville (Mich.) Marketplace, a 224,500-square- foot power center, from Retail Value, Inc. Hobby Lobby, OfœceMax andžPetSmartž are among the tenants $20 million North American Real Estate acquired Woodgrove Festival, a 157,300- square-foot retail center in the Chicago suburb of Woodridge, Ill., from Kimco Realty Corp. $21.5 million Morrison Investment Group bought Statesboro (Ga.) Crossing, a 155,200-square- foot regional power center anchored by Books-A- Million, Hibbett Sports,žHobby Lobby andž Olive Garden Small buys Fewer big deals ahead despite strong fundamentals, report says By Brannon Boswell $100 75 50 25 0 $ billions 02 04 06 08 10 12 14 16 18 Source: Marcus & Millichap $1M-$10M $10M-$20M $20M+ $120 90 60 35 0 8% 7 6 5 4 Square feet (millions) Vacancy rate 10 11 12 13 14 15 16 17 18 Source: Marcus & Millichap Completions Absorbtion Vacancy Retail property supply and demand Retail property sales volume

Articles in this issue

Archives of this issue

view archives of Shopping Centers Today - OCT 2018