By Kris Hudson

In spite of the rapid rise in online sales that have hurt a number of national retailers, the biggest shopping-mall companies are doing quite well, thank you.

That was the counterintuitive message delivered Tuesday by several chief executives of leading retail property owners at International Strategy & Investments real estate conference. ISI, an investment research firm, held its annual conference at the St. Regis Hotel in Manhattan. The CEOs argued that, despite challenges facing individual retailers, many real estate investment trusts that own retail property are posting occupancy of 90% or more and annual gains in lease rates.

Thats happening, they said, for three primary reasons. First, while retailers such as Best Buy Co. and Staples Inc. have been closing stores, chain stories such as Forever 21 Inc. and TJX Cos. TJ Maxx are expanding. Second, many retail landlords are bolstering their properties by adding tenants that offer services, such as restaurants, nail salons and gyms, rather than goods that otherwise can easily be bought online.

For every Best Buy or Staples with dramatic headlines about their downsizing efforts, there are five or 10 other retailers who have ramped up their expansion plans, like Nordstrom Rack, said David Henry, CEO of Kimco Realty Corp. , which owns stakes in 926 shopping centers. There is more demand for space than downsizing going on.

Third, retail landlords are benefitting from a dearth of competition as construction of new retail space has been limited. Developers are expected to complete construction of 19 million square feet of retail property in the top 54 U.S. markets this year in comparison to 159.4 million square feet at the height of the boom in 2007, according to CoStar Group.

To be sure, online sales represent one of the greatest threats that shopping centers have ever faced. Internet distribution of certain goods has devastated several retail categories, namely electronics, books and office supplies. Though still a small portion of overall sales, online sales are growing at a pace far outstripping the rest of the market. To wit, the National Retail Federation predicted Tuesday that holiday salesboth online and brick-and-mortarin the United States this November and December will increase by 4.1% this year to $586.1 billion. However, online sales, taken on their own, are projected by the NRF to grow 12% to $96 billion.

To that end, a new rallying cry among retail landlords is to recruit so-called omnichannel retailers, those that sell robustly both online and in their stores. Those include Apple Inc. Wal-Mart Stores Inc. , Bed Bath & Beyond Inc. and Saks Inc. s Saks Fifth Avenue Off Fifth.

Online sales are raising the bar for us in terms of the product we provide, said Don Wood, president and CEO of Federal Realty Investment Trust, which owns 85 U.S. shopping centers. We had better provide a more experiential, more social atmosphere. You want the retailers who have great distribution through the Internet. Theyre the smart retailers; embrace them.

Daniel Hurwitz, president and CEO of DDR Corp., which owns stakes in 459 shopping centers, highlighted one positive trend and one negative trend in the market. First, the move by some prominent retailers to shrink the size of their stores can become a benefit for landlords, he said. Replacing one big tenant with several smaller tenants diversifies a landlords risk, boosts the shopping centers sales and profits per square foot and often enables the landlord to collect more in rent.

Originally posted here:
Retail Landlords: Malls Doing Well Despite Online Sales

Construction to replace a Central Street apartment and retail building that was demolished by a fire last January is set to begin by the end of the month.

The Planning Board waived the a site plan requirement on Monday, allowing developers to reconstruct a building at 64-66 Central St., and expand its parking lot, as long as developers make minor changes to the parking lot layout and make plans to rebuild a granite retaining wall.

The renovated two-story building will include a single retail space on the first floor and two apartments on the second floor. It is unknown what kind of business will occupy the retail space, said the projects general contractor, Tony Chiarelli, president of the Milford-based restoration contracting company Landmark Associates.

He told the Planning Board Tuesday, If we have to make the adjustments accordingly, we will do that.

Chiarelli said that once construction begins, the entire project should take around five to six months, but it is unknown when the new tenant will set up shop.

Foundation-wise and framing-wise, thats how far they are. They need to make some minor kinks. They should have it off the ground any day, said Town Planner Larry Dunkin.

A three-alarm fire last January destroyed the building and its two apartments and Brazilian check-cashing and multi-service store. Officials at the time said the building did not have working smoke detectors.

The property is owned by Uxbridge resident Wendy Beltramini, who said shortly after the fire destroyed her building that she had poured her heart into remodeling it.

The old-styled building was constructed around 1890, said Zoning Board of Appeals Chairman David Consigli in the boards decision to approve Beltraminis special permit request last August.

Chiarelli said that developers have already adjusted their site plans to accommodate minor requests by several town departments such as installing catch basins in the rear parking area, adding a 4-foot-high chain link fence on top of the buildings retaining walls, and changes to the location of the handicapped parking space.

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Burnt Milford building to be redone

Corporate News | Press Release Vienna/Lublin, 2 October 2012

IMMOFINANZ Group starts prestigious retail development project in Poland

Today, IMMOFINANZ Group presented its next retail development project in Poland: A state-of-the-art high-quality shopping center will be created in the middle of the Lublin City Center, close to the historic castle. Tarasy Zamkowe - previously known as Galeria Zamek - will become an exciting shopping, entertainment, recreation and leisure facility as well as an integral part of the existing inner city attractions. And the signs are promising: The interest of local, national and international retailers for sales areas is exceptionally high. The leasable area will amount to 37,000 sqm, offering space for about 150 shops. Construction works will start in October, and the opening is scheduled for autumn 2014. The total investment for this project will amount to approximately EUR 115 million (PLN 480 million).

Lublin is a promising retail market with 350,000 residents and a total catchment area of 800,000. This fact - together with the strong economic power of the city of Lublin and the low retail density - influenced our decision to buy the former Galeria Zamek site last year. In order to create a shopping mall that fits perfectly into the townscape and offers a unique shopping and entertainment experience, we revised the original design to include the latest retail development trends, commented Eduard Zehetner, Chief Executive Officer of IMMOFINANZ Group - one of the leading real estate investors and developers in Europe. We are very pleased that our efforts to build a state-of-the-art retail property were rewarded by the local authorities and that we will be able to start construction works within the next few weeks. Following the successful extension of the Silesia City Center and the recent start of our first residential development project, Dbowe Tarasy, both in Katowice, Tarasy Zamkowe represents another important development in Poland - a promising market where we plan to further intensify our activities.

From Galeria Zamek to Tarasy Zamkowe

Since the name Galeria Zamek has been on the market for quite a long time, IMMOFINANZ Group conducted a survey in Lublin to evaluate whether the brand still matches the revised concept for the shopping and entertainment center. Tarasy Zamkowe was chosen from several recommendations. This name evokes positive associations among the residents of Lublin and is perceived as a modern, trendy, fashionable, green and inspiring place.

An exceptional shopping center, tailor-made for residents requirements

The remarkable design of Tarasy Zamkowe combines unique architecture with high ecological standards. The distinctive features are greeneries located on the top of the building: lawns, pathways and viewpoints among which the most impressive one will overlook the panorama of the Castle and the Old Town. Public squares at the corners of the shopping center will invite visitors to linger and also create room for events.

Tarasy Zamkowe is projected to accommodate about 150 retail units, 3 restaurants as well as numerous cafes and food court units. The floor area totals 104,000 sqm: 37,000 sqm dedicated to leasable area, 23,000 sqm to public space and plant room and 44,000 sqm to underground parking. Three levels will provide 1,000 convenient parking spaces. Located between Aleje Unii Lubelskiej and Tysiclecia, the new shopping center will also be easily accessible by public transport, bicycle or foot.

IMMOFINANZ Group is already in intensive negotiations with international, national and local retailers. The demand for quality retail space in Tarasy Zamkowe is very high. Thus, Tarasy Zamkowe will offer a well-balanced tenant mix including many well-known brands - some of which are currently not available in the Lublin region.

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DGAP-News: IMMOFINANZ Group starts prestigious retail development project in Poland

After years of delays, the long-abandoned Victoria Theater site is close to getting financing for construction and redevelopment.

The Victoria Theater, a Harlem icon on 125th Street between Frederick Douglass and Adam Clayton Powell Jr. boulevards, has been vacant since it closed in 1989. Its now slated for redevelopment by Danforth Development Partners, LLC and Exact Capital.

According to Harlem Community Development Corporation President Curtis Archer, the 26-story, 360,000-square-foot complex will feature a 210-room hotel with a ballroom, mixed-income rental housing, a cultural arts center with a 199-seat theater, retail space, a restaurant and jazz club, and an underground parking lot.

Weve made tremendous progress and are, right now, in the throes of locking up a bank for a construction loan, Exact Capital co-president Michael Callaghan said. Were looking to close on financing in the first quarter of 2013. Well have a 24-month build schedule, so the building should be complete by the first quarter of 2015.

Some of the theaters architectural features, including the front exterior, the lobby, and the staircase, will be preserved, while the original marquee and blade sign will be replicated. Danforth President Steve Williams said his company is collaborating with the State Historic Preservation Office on the project.

They have inspected the site and they have come to meetings. We talked with them, and we have gotten their tentative approval on the project, Williams said.

The Harlem CDC, which has owned the building since 1977, chose Danforth to redevelop the site in 2007. The newly developed space, which Archer said will cost $143 million, is also slated to include four arts organizations: the Harlem Arts Alliance, JazzMobile, the Classical Theater of Harlem, and the Apollo Theater Foundation, Inc.

A number of institutions who had been advocates for Harlem, celebrating the history and culture, were getting displaced by increasing rental rates, Williams said. I felt that people who had been advocating for Harlem should be rewarded and be a part of the largest development project in Harlem, maybe even in its history. So we put together a team of a broad spectrum of great groups.

Michael Unthank, a consultant for the Harlem Arts Alliance, said the organization is working to create a collaborative cultural space with other arts organizations.

Right now, the consortium of arts organizations is working with the architects to organize the space, Unthank said. Because of HAAs nature as a service organization, we will serve as the link to the grassroots Harlem art community.

Continued here:
Victoria Theater redevelopment getting financing

MILPITAS, Calif.--(BUSINESS WIRE)--

Construction is underway at Apex, a new, modern apartment community anticipated to open in Milpitas in Spring 2013.

Built by Newport Beach-based Lyon Communities, recognized as one of the largest and most respected privately held multi-family real estate companies in California, Apex will feature 1 3 bedroom apartment homes with 1 2 bathrooms and an amazing array of resort-style amenities.

Apex is a brand-new community unlike any rental opportunities in the region, said Suzanne Maddalon, Executive Vice President for Lyon Communities. The resort-style amenities include a rooftop pool and spa, outdoor entertainment area with TV wall, fitness center and game rooms. They will be unmatched in the area and provide an upscale living experience that meets the demands of discerning Silicon Valley renters.

Conveniently located near the South Bay, Apex residents will have easy access to the Silicon Valleys most vibrant employment centers, including San Jose, Santa Clara, Sunnyvale and Mountain View. The community is within walking distance to the light rail Great Mall station, and close to Highways 880, 680 and 237.

Scheduled to begin leasing in early 2013, Apex is just blocks from the second-largest retail mall in the region, The Great Mall of the Bay Area, which offers more than 1 million square feet of shopping, dining and entertainment options. Additional grocery stores and a big box retailer, Costco, are located near the community as well.

Apex will feature 366 apartment homes ranging from approximately 581 to 1,450 square feet. The homes will include modern, open floorplans with 9-foot ceilings, gourmet kitchens with stainless steel appliances, modern Caesarstone countertops and European style cabinetry, designer fixtures and hardware, oversized tubs in most floorplans, in-home washers and dryers, abundant storage space and will be high-speed data ready.

Club Apex provides residents with an array of rooftop amenities that are an instant escape from the days hectic pace. Those include a luxurious resort-style pool and spa with multiple lounging areas and private cabanas, outdoor entertainment area with TV wall, a state-of-the-art fitness center, a movie theater, billiards and game room, a gourmet demonstration kitchen and Wi-Fi caf. Additional community amenities include multiple courtyard parks with barbeques, picnic and entertainment areas; a group of e-business centers, a yoga/pilates studio and a pet grooming spa.

Our goal is to create a very special community for our residents by providing an environment with amenities and features which appeal to the active lifestyle enjoyed by Silicon Valley residents, said Maddalon.

For more information on Apex, visit http://www.LyonApex.com.

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Lyon Communities Begins Construction on Apex in Milpitas

LAS VEGAS, Oct. 1, 2012 /PRNewswire/ -- Caesars Entertainment announced today an impressive first wave of tenants to populate The LINQ, the company's $550 million open-air retail, dining and entertainment district located on the 50-yard line of the world-famous Las Vegas Strip. Popular first-to-market concepts and trendsetting brands, such as Brooklyn Bowl and Sprinkles Cupcakes, are among the first tenants to sign onto the project which boasts more than 300,000 square feet of retail, dining and entertainment space. Opening in late 2013, more than 70-percent of the development space is committed under signed leases or letters of intent. With another 15-percent of the space under negotiation, the significant level of interest and demand from potential tenants has pushed The LINQ far ahead of schedule as contrasted with comparable projects at this stage of development.

(Photo: http://photos.prnewswire.com/prnh/20121001/AQ84069)

"We've compiled a dynamic first group of retailers, restaurateurs and entertainment impresarios to achieve a unique and one-of-a-kind experience," said Gary Loveman, chairman, president and chief executive officer for Caesars Entertainment. "Rather than adding additional gaming space or more rooms into an already room-rich market, we've designed The LINQ and its distinctive set of tenants to create an entertainment experience unlike any other currently available in Las Vegas. We believe this experience is something our current visitors will enjoy, as well as appeal to and attract a new set of customer."

Caesars in collaboration with Caruso Affiliated, owner and operator of the popular Los Angeles shopping district The Grove, hand-selected the first wave of tenants to establish an atmosphere for The LINQ that will appeal to the region's growing Gen X and Gen Y (ages 21-46) clientele. While The LINQ is designed to attract a slightly younger consumer, it will hold broad appeal for the more than 20.4 million people who currently pass the site annually. Sitting directly across from Caesars Palace and nestled between the Imperial Palace Resort and Casino to the north and Flamingo Resort and Casino to the south, The LINQ is within reasonable walking distance of more than 24,000 hotel rooms. An impressive 130-foot tall three-sided, full LED paneled pylon sign will mark the project's Las Vegas Boulevard entrance while the world's tallest observation wheel, the 550-foot Las Vegas High Roller, will serve as the focal point for The LINQ from the rear and is expected to become a top Las Vegas attraction. Adjacent to the High Roller sits several acres of programmable festival space that The LINQ operators will organize with outdoor events throughout the year.

"The LINQ offers a shopping, dining and entertainment experience that can't be found anywhere else in Las Vegas," said Rick J. Caruso, founder and chief executive officer of Caruso Affiliated."With its stunning architecture and landscaping, diverse mix of world-class retailers and restaurants, and round-the-clock entertainment -- all anchored by the excitement and romance of the majestic High Roller -- The LINQ will be a 'must-go' destination for Las Vegas visitors and residents alike. We couldn't imagine a more inspiring and exciting project to represent our first foray into the Las Vegas market.It's going to forever change the way people think about shopping and entertainment in this great city. "

Caruso Affiliated, known and respected for building the most unique and highly successful and award winning retail projects in the nation, has worked with Caesars on The LINQ for more than two years providing design, merchandising and leasing strategy. Designed as a hub of social activity and connectivity, distinct experiences programmed throughout the day and night will further distinguish The LINQ. Unlike other Las Vegas entertainment experiences aside from the casino floor The LINQ will be programmed and activated a full 24-hours a day.

"The LINQ will cater to a wide variety of audiences and will serve as a location for a wide range of functions be it a business meeting, bachelor party, family outing, first date, or ladies night out," said Jon Gray, vice president and general manager of The LINQ. "No matter what the time of day, there will be something for you at The LINQ; from the time you get up in the morning, seeking a cup of coffee, to the time you're ready to call it a night, with one last drink or quick bite. We are creating an experience that currently does not exist within the market. The development and its impressive list of tenants will re-define the center Strip and become a must-visit attraction."

Comprised of diverse retail, dining, and entertainment experiences, the first wave of tenants to join The LINQ include the following:

While current signed tenants include a mix of dining, live entertainment and retail concepts, additional leases are being finalized in the apparel, eyewear, electronics, accessories, and athletic/sports boutique categories as well as quick serve dining, unique bars and iconic restaurants from across the country.

The LINQ retail, dining and entertainment experience is on schedule to open in 2013. Caesars estimates The LINQ will employ about 3,000 construction workers and create approximately 1,500 permanent jobs upon opening.

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Caesars Entertainment Reveals Impressive Roster of Trendsetting Brands to Join The LINQ

LAS VEGAS (FOX5) -

It's not opening for another 14 months, but its retail and restaurant space is filling up fast. LINQ, anopen-air entertainment district being built between The Imperial Palace and The Flamingo, is already at 70 percent capacity.

"The economy is coming back, people are coming back to Las Vegas, visitorship is up and we have a prime location," said LINQ Vice President and General Manager Jon Gray.

Among the companies already committing to space at the LINQare: Yard House, Tilted Kilt, a pub and eatery, and Off the Strip, a Bistro. Gray said 20 million people walk past the area every year and when the LINQ opens it will generate more foot traffic.

UNLV gaming expert David Schwartz is not surprised by the interest in LINQ.

"I think it shows the retail community is responding to what LINQ is, which is differentthan what we've seen in Vegas," he said.

LINQ will be catering to the Gen X and Gen Y clientele, Gray said. Fifty percent of visitors to Las Vegas by 2015 will be between the ages of 21 and 46.

In addition to retail and restaurant space, LINQ will be home to the High Roller Observation wheel. The $550 million construction project is employing 3,000 construction workers, and when completed will employ 1,500 full-time retail and food service workers. It's set to open in December 2013

Copyright 2012 KVVU (KVVU Broadcasting Corporation). All rights reserved.

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LINQ filling up fast

Published: Monday, October 1, 2012, 12:01 a.m.

Even on a recent work day, plenty of shoppers strolled up and down the covered outdoor promenade between stores and munched in the food court. Construction work to add more than 100,000 square feet of retail space ground on nearby. The work is visible to drivers whooshing past on I-5.

The outlet center in Quil Ceda Village has performed so well -- even in this sputtering economy -- that its owner, Simon Property Group, is adding around 14 stores' worth of retail space.

The project is expected to be completed by the middle of 2013. A new parking garage is already finished.

The success of the outlet center is a stark contrast to the fortunes of some of the owners of Everett Mall, who faced foreclosure earlier this summer.

"The appeal is our large collection of designer labels and name brands at great savings," said Mark Johnson, general manager of Seattle Premium Outlets.

Or, to put it another way, in good days, consumers enjoy a bargain and in bad times, they need it, said Linda Humphers, the editor of Value Retail News, an outlet industry trade publication based in Clearwater, Fla.

"Outlets have always done well in a difficult economy," she said. "They seem to be resistant to flattening."

The outlet industry is a small segment of the retail industry but it's growing. Nationally, there are 185 outlets, according to Value Retail News' State of the Outlet Industry report for 2012. Ten of those have opened in the past 18 months. Compare that to around 100,000 shopping centers in the U.S.

Even now when times are tough, outlet sales continue to grow. The trade publication estimates total industry sales at $25.4 billion this year. That's $3 billion higher than the estimate for 2011.

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Big addition to Seattle Premium Outlets to open next year

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Several major developments in recent years have increased the population and vibrancy of East North Avenue, a commercial corridor at the heart of Milwaukee's East Side neighborhood.

1150 North

Now, three more major residential projects are in the works for the East North Avenue area, which could further increase the population of the area and boost businesses in the neighborhood.

HD Development Group, led by Todd Davies, recently began site work for construction of a 122-unit apartment building at 1150 E. North Ave., which will be called 1150 North. Once the site work is complete there will be a brief pause before construction of the building begins, Davies said. Construction of the building will take about a year. He declined to comment on the financing status for the project. Most to all of the apartments will be rented at market rates, but details have yet to be determined, Davies said.

Town of Brookfield-based HSI Properties plans to build a 99-unit market rate apartment building, called The Standard @ East Library, at the site of the East Library at 1910 E. North Ave. The project will include a new 17,000-square-foot space for the library and 3,000 square feet of retail space. HSI is seeking a loan guarantee for the project from the U.S. Department of Housing and Urban Development's 221(d)(4) program. Construction could begin in early spring of 2013 and be complete in 12-15 months. The five-story building will replace the existing one-story library building.

Milwaukee-based Joseph Property Development LLC and Milwaukee-based Boulder Venture LLC are planning a redevelopment project at the former Prospect Mall site, located just off North Avenue, west of the Prospect Avenue and Ivanhoe Place intersection. The project will have 52 market rate apartments and 10,000 square feet of retail space. The existing building will be gutted to create the retail space and indoor parking space. Four levels of apartments will be built on top of the existing building. Boulder Venture will own the retail space and Joseph will own the apartments. Construction is expected to begin by next spring. It will take about one year to complete the project.

Joseph and Boulder Venture are "very close" to getting financing locked in for the project, said Robert Joseph, founder of Joseph Property Development.

The developers for these projects say their apartments will be leased by people, particularly young professionals, who want to live in the dense, pedestrian-friendly, active North Avenue corridor.

Continued here:
More development heading to East North Avenue

WEST MILFORD After four years of revisions, expansion plans for the townships primary retail center have now cleared most regulatory hurdles and may begin to take shape as soon as this winter.

The Planning Board unanimously approved the ShopRite centers multimillion-dollar expansion plan Thursday night, paving the way for an additional 4,000 square feet to the supermarket and another 9,000 square feet in new retail space. A large chunk of the new space will come from a 7,500-square-foot building that will replace a long-defunct movie theater.

Also as part of the plans, the supermarket will receive a face-lift, and its parking lot will be beautified with new landscaping and trees.

Its going to provide a major improvement, said John Wyciskala, an attorney for Inserra Supermarket Inc., which owns most of the retail center. Hopefully, with all these changes to the faade and overall appearance and experience, it will attract more business into West Milford.

The shopping center first submitted its growth plans in 2008; those plans drew Planning Board approval a year later. But Inserra ultimately found them infeasible for construction because a water tank would have to be relocated and possibly close the supermarket for some time, Wyciskala said. So the company decided to scale back, choosing only to extend a portion of the back of the supermarket while adding 10 feet to the front.

Mayor Bettina Bieri, who sits on the Planning Board, said the expansion is long overdue and residents have been eagerly awaiting the changes.

Itll be more beautiful, itll be more modern, the parking lot itself wont be as much as an eyesore, she said. Im excited just like all the rest of the residents.

Bieri said that many residents will be disappointed by the demolition of the old movie theater building. But after many failed business attempts, it is clear the township doesnt have enough residents to keep a cinema afloat, she said.

The supermarket will use its new floor space to change its layout and have a larger area to prepare fresh foods, Wyciskala said.

In addition to using the theaters space, the shopping center will add 1,500 square feet for retail on its far right end. No businesses have yet expressed interest in renting the space.

Continued here:
ShopRite in West Milford gets green light for expansion