Shopping Centers Today

AUG 2015

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

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utparcels are outliers no longer. once a fringe niche in the retail leasing and investment world, these pad sites on the outskirts of shopping centers are getting snapped up at a record pace, as restaurants and retailers frantically seek in-your-face space on mall ring roads and busy streets. O priMe tiMe For paD sites OUtparcels, Once cOnsidered fringe areas, are nOw in high demand amOng restaUrants and retailers By Steve McLinden a U g U s t 2 0 1 5 / S C T 43 the industry is responding to the demand by finding ways to create new outparcels or by re- purposing old ones, say developers and leasing agents. "pads are commanding big rents now, and tenants are paying it to get street exposure, show their individuality and have captive parking," said randy Blankstein, president of the Boulder group, a northbrook, ill.–based real estate investment services firm. "shopping center owners, whether new construction or existing, are recognizing the value in these outparcels." pad locations typically benefit from traffic-drawing anchors, superior access, ideal sight lines and reusability, Blankstein says. centers of all stripes seem to be going pad-mad. among them is california's outlets at san clem- ente, slated to open near interstate 5 this fall, with 13 outparcels. "We're going after high-end restau- rants and uses that are unique and different that will create an experience," said Jim clarkson, a part- ner at newport Beach, calif.–based strategic retail advisors, which is leasing the spaces. the success of the mall will inevitably help the pads, "and the pads, with the right mix, will in turn help the mall," he said. "if you have upscale tenants on outlining pads, the entire center gets a high-end feel." the strategy of shifting new lease space from an in-line configuration to a shopping center's perimeter is especially prevalent in Dallas–Fort Worth, one of the top markets for shopping cen- ter construction. southgate Marketplace, a planned 500,000-square-foot power center in Fort Worth, will be flanked by 11 roadside outparcels complementing another 11 stand-alone junior- anchor and anchor spaces ranging from 27,000 to 98,000 square feet. in lewisville, near Dallas, Weitzman group/cencor realty group's 300,000-square-foot, grocery-anchored castle Hills center features a 123,000-square-foot Kroger, surrounded by

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