If you are one of those people who think Americas retail industry is doing just fine, well, there are three possibilities: Youve been living under a rock; you think Amazon refers to a South American river; or youre a real estate developer.

As everything from once-mighty department stores to niche clothing chains announce plans to shutter hundreds of locations, and retailers file for bankruptcies at a record pace, builders are pouring growing sums into retail projects.

Across the country, construction spending on shopping centers topped $1.6 billion in June, the largest amount since 2008 and the Great Recession. Builders have been especially busy working on malls, spending $404 million in April. In nominal terms, thats the second highest monthly total ever according to census data, coming in behind July 2008.

So at a time when news headlines are full of store closings, and the internet is methodically destroying any experience that involves parking lots, fitting rooms, or cash registers, why are developers still building more retail space?

First, its worth pointing out that this isnt an entirely new dynamic. For the last two decades, retail development has outpaced population growth in most big metropolitan areas. Thats partly due to over-exuberance, and partly in response to evolving consumer demand and competition. Category-killing big box stores like Best Buy Co. or Bed Bath & Beyond Inc. anchored so-called power centers, increasing retails physical footprint while simultaneously siphoning off customers who would have bought their linens and big screen televisions from traditional department stores.

More recently, mall owners have been spending money to renovate existing properties in a bid to draw foot traffic. That often means demolishing excess space and making improvements to create room for restaurants and other attractions in a last ditch effort to prolong the life of brick-and-mortar retail.

The major consideration is investment in renovation and renewal of existing assets rather than new ground-up development, said Sam Chandan, president of Chandan Economics, in an email. The experiential aspects of retailing and the provision of services that cannot be replicated through online sales, e.g. a dinner out, are driving investment in mall repositioning.

There are other reasons for the higher numbers. A growing preference for building near urban centers may be inflating construction costs by forcing developers to pay more for labor and land. Markets that are thriving today might not have enough retail, while areas that supported shopping centers decades ago no longer offer retailers the same opportunities.

Taken together, though, the forces driving construction spending on shopping centers in the near-term offer a pithy reminder: Even as stores shutter, and the shift to online shopping gains steam, brick-and-mortar isnt going to disappear all at once.

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Why is retail-construction spending strong? Finance & Commerce - Finance and Commerce

Retail REIT, Kimco Realty Corp. KIM announced the groundbreaking at Dania Pointe's Phase 1 retail part. Encouragingly, this project in Southern Broward County, FL, has grabbed much attention and its Phase 1 is already around 80% preleased to a number of national and regional retailers.

The move is a solid step toward the realization of the broader mixed-used project - Dania Pointe. Upon completion, Dania Pointe will become an open-air lifestyle community, with around 1 million square feet of retail and restaurants space, complemented by up to 500,000 square feet of Class A office space, 1,000 luxury rental apartments and condominiums, and two signature hotels.

Situated just next to I-95, this property will serve as the central location for residents going north and south on I-95, as well as east and west on I-595. Moreover, it is situated less than 10 minutes from the Fort Lauderdale-Hollywood International Airport and Port Everglades. Also, the site is only 20 minutes from upscale communities of Weston and Plantation to the west, Fort Lauderdale and Pompano Beach to the north, and Hollywood and North Miami Beach to the south. This makes the property easily accessible to tourists and tri-county residents.

Mixed-use Developments

Notably, mixed-use developments have gained popularity for their solid neighborhood character, greater housing variety and density. These developments bring down the distance between housing, workplaces, retail businesses, and other amenities and destinations. Hence, such developments enable the companies to grab the attention of people, who prefer to live, work and play in the same area - a trend that drove development in several other cities in the U.S.

In addition to Kimco, Regency Centers Corp. REG is exploring the positives of mixed-use developments. The company announced a new mixed-use ground-up development - Mellody Farm - in Vernon Hills, IL, in Apr 2017.

In Conclusion

Kimco's premium properties in high-growth areas, presence of well-capitalized retailers in its tenant roster, investments in high-quality neighborhood and community shopping centers, and shedding of non-core assets augur well for growth. However, rising online sales, store closures, tenant bankruptcy and earnings dilution, led by high disposition activity, remain causes of concern.

Kimco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

However, year to date, amid the choppy retail real estate environment, shares of Kimco underperformed the industry it belongs to. During this time frame, shares of the company descended 18.6%, whereas the industry incurred a loss of 4.0%.

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Kimco (KIM) Begins Construction of Phase 1 at Dania Pointe - Nasdaq - Nasdaq

The city of Maple Valley has a number of projects planned. The following is an update on projects around the city

Summit Park

There is a proposal to subdivide 23.38 acres into 126 lots for construction of single-family detached residences at Summit Park. The development site is bounded on the north by Southeast Kent-Kangley Road, on the west by residential development, on south by the new Tahoma High School campus and on the east by the Cedar to Green River Trail.

The land will be developed at a density of six units to the acre, and as proposed, meets R-6 development standards regarding maximum housing density, minimum lot width and minimum building widths. The recreation area requirement for Overlook at Summit Park is 54,810 square feet. The three recreation tracts provide 54,899 square feet of recreation space, meeting the city of Maple Valley standards. These tracts include amenities such as picnic tables, benches and childrens play toys.

On the east side of the land, proposed Road C is connected to the King County Cedar to Green River Trail right-of-way via a 15-feet-wide pedestrian pathway consisting of eight feet of paved trail with 3.5 feet of landscaping on each side.

Information provided by Novastar Development. You can contact them at 425-251-6110.

Lake Wilderness

This will provide 200 residential units in 17 multifamily buildings; a club house and three commercial buildings.

There are three different residential building styles that are all three stories tall. Two of the commercial buildings will be a single story with the third having a second floor.

The allowable height in the community business zone is 85 feet. The residential buildings proposed are approximately 38 feet. Lake Wilderness Mixed Use is providing 21,930 square-feet of commercial space, which will be a mix of office, retail and some restaurant space.

Also 3,760 square-feet of commercial land will be at the base of one of the residential buildings, whereas the rest of the commercial land faces Maple Valley-black Diamond Road. This project provides 118,992 square feet of open/recreation space, which includes an outdoor swimming pool and a tot lot.

Information provided by Itty Bitty, Big &Bouncy LCC.

Four corners

Four Corners Mixed Use will provide 126 residential units in 11 multifamily buildings and a club house with a commercial component. There are four different residential building styles that are all three stories. The residential buildings proposed are approximately 36 feet. The club house will be 8,271 square-feet and of that 5,067 square-feet will be office and retail space that will be open to the public.

This project provides 42,502 square-feet of recreation space, which includes an outdoor swimming pool, dog park, playground and a community patio space in the center of the site.

Information provided by Pallis Properties.

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Construction projects update in Maple Valley - Covington-Maple Valley Reporter

Lebanon The apartment complex to be built behind the Element hotel on Route 120 in Lebanon moved has moved a step closer to reality as the developer has filed his plans and sought permission from the city to begin construction.

Manchester developer Dick Anagnost filed a permit application with the Lebanons city planning department to begin construction on a $4 million, three-story apartment building. He hopes to be able to break ground on the project this fall and have it ready for occupancy next summer, according to Anagnost.

The apartment building is the first in a planned 153-unit residential complex in Altaria Lebanon Park, a mixed commercial and residential development spanning 65 acres of which the 4-year-old Element hotel was the first phase.

Anagnost expects the entire five-building apartment project to be completed by 2019 at a cost all-in, probably $20 million to $30 million, he said in an interview.

And even though construction on the project has not yet begun, Apartment Leasing signs are already up at the entrance to the Element hotel. Planning department administrator Leann Cushman estimates approval time to release a permit is about a week.

After years of complaints about the chronic housing shortage in the Lebanon and Hanover area more units are now in the various stages of planning, although how much the new developments will relieve pressure on the near-zero vacancy rate remains to be seen. Five different projects totaling 342 units are in various stages of planning and development in Lebanon.

The Altaria project will include one-, two- and three-bedroom units, along with underground parking, Anagnost said. He envisions residents to be mostly young professionals, but well have some families too because of the three-units. Were hitting a broad spectrum.

The complex also will include furnished units available for people in need of a short-term residence near Dartmouth-Hitchcock Medical Center, such as physicians serving their residency or visiting professors at Dartmouth College who teach for a semester or two.

Anagnost said a market study is being done to determine rental rates, but he anticipates them to range from about $1,700 to upward of $2,000 a month, depending on size. He said kitchen amenities in the units will include granite countertops and all stainless steel appliances.

Altaria is being developed by Hanover-based developer Peter Knights, who received the green light for the residential component from the Lebanon Planning Board in 2015. Overall, the development is to include 336,000 square feet of office space and 40,000 square feet of retail space. The board originally approved a subdivision plan at the site in 2011, which had been under consideration for several years prior.

Other housing projects at various stages in the pipeline in Lebanon include a 75-unit complex on Etna Road, which has been scaled back from over 100 planned units; a 29-unit mixed-income project on Tracy Street in West Lebanon sponsored by Twin Pines Housing (originally proposed for Main Street in West Lebanon); and an 80-unit building as part of developer David Clems commercial and residential River Park development. But the River Park apartment building is the last phase in Clems seven-phase development, so it is presumably still some time away from development, said David Brooks, director of planning and zoning for Lebanon, in an email.

John Lippman can be reached at jlippman@vnews.com.

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Fall Start Seen For Route 120 Apartments - Valley News

When construction was completed on the South Sides Terminal Warehouse and Transfer Company complex in 1906, it was considered the largest, safest and most efficient storage and transfer building on the Eastern seaboard, says Izzy Rudolph, director of development and acquisitions at McKnight Realty Partners.

More than one hundred years later, McKnight has begun construction on a multi-million dollar transformation of the six-story structure from a nexus of commerce to a riverside hub for office and retail space. It will be capped by an elevated, 500-foot-long park, the Highline.

Were taking it into the next generation by really modernizing the building soup to nuts, says Rudolph.

Buildout began this week on 125,000 square feet of new office space inside the800,000- square-foot structure. This phase of construction is scheduled to be completed by second quarter 2018 and will include new common areas, fitness centers, windows, HVAC, and a fire and life safety system. In addition, 350 new internal parking spots will be completed by first quarter 2018, with more to come.

Courtesy Indovina Associates Architects.

The hulking brick structure, located at 333 East Carson Street, transitioned from storage to office space beginning in the 1980s and is currently known as the River Walk Corporate Center. What appears to be two separate buildings bisected by a street is actually a single structure, and in 2013 it was listed on the National Register of Historic Places.

Besides office space, the property will look to attract 100,000 square feet of retail, including 15,000 square feet along East Carson. Another stretch of retail will be along S. 4th St. near Bingham St. and the nearby, trail-facing railyards portion (where trains used to arrive to transport newly imported goods to the surrounding areas).

Rudolph says they want to shy away from the negative aspects of South Side nightlife and have so far held discussions with local bakeries, fitness centers, bike and kayak rentals and even craft breweries about setting up shop in the space.

The most transformational part of the building, he says, remains the Highline. Modeled after the 1.5 mile long parklet created on the elevated former railroad in New York City, the Pittsburgh version will extend from near the entrance on East Carson and over the present CSX rail lines to an overhang that will overlook the Monongahela River and city of Pittsburgh.

Powerhouse building. Courtesy Indovina Associates Architects.

The Highline is currently scheduled to open around July 2018.

It will be one of the most unique green spaces in the state of Pennsylvania, says Rudolph.

The Highline will terminate at the second floor of the 15,000-square-foot powerhouse building. Rudolph envisions the riverfront structure as two-story restaurant space, possibly with separate concepts on either floor. It screams out waterfront eating, he says.

The lower floor of the powerhouse building abuts the Three Rivers Heritage Trail, which currently detours around the Terminal Building. Rudolph says he hopes to reconnect the trail in the very near future, along with adding upgrades to the outdoor promenade to make it more bike and pedestrian friendly.

Indovina Associates serve as project architects. For more information on the project dont miss our story from 2016.

Update 8/9/17: About that name. Many people commented on Facebook that there should be an original name, not one copied from New York. Izzy Rudolph said this in the NEXTpittsburgh interview:We wanted people to know what the space was the first time they heard it. As tenants come here that name will evolve into something different. But right now what we really want to get across is the uniqueness of the green space were adding to the project and thats something that no other name would do justice to.

pittsburgh highlinepittsburgh newsterminal building

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Retail, restaurants and unique elevated green space planned for South Side Terminal Building and Highline project - NEXTpittsburgh

The UFO Factory sits on Trumbull Ave., across from the old Tiger Stadium site and sits in the center of the Elton Park residential and retail development.(Photo: Sarah Rahal/The Detroit News)Buy Photo

Detroit UFO Factory abruptly closed Wednesday after a construction incident damaged the building.

Owners of the rock club and bar at 2110 Trumbull in Corktown said the damage happened at 11:30 a.m. Dion Fischer, one of three owners, said three employeesfelt the collision.

"We were open," Fischer said. "I had about three workers here and thankfully no customers, but they felt and heard it and ran out."

A large crack in the side of the UFO Factory was caused when Elton Park retail construction workers struck the building with a cement mixer on Wednesday, Aug. 2, 2017. (Photo: Sarah Rahal/The Detroit News)

Construction crews were digging next to the UFO Factory building when a cement mixer struck the building, witnesses said.Workers were making space next toUFO Factory for a $44 million Elton Park retail and housing development.The project consists of 151 housing units and 124,000 square feet of retail.

The incident damaged the building's foundation, making it a safety hazard to stay open, said Aliccia Bollig-Fischer. She was uncertain if the club and bar would reopen at the site.

Fisher said the building dates to 1938, so he wasn't surprised how quickly the building began to shift after the hit.

The owners took over the building in 2012. In 2014, they opened the UFO Factory, which is known as a dive bar with arcade games andLaika Dog, which serves artisan hot dogsalong with beer and grilled cheeses.

"You won't get your hot dogs for a while," said Bollig-Fischer. "We would intend to get back open, but we need to wait for the contractor and insurance company to see how bad this is."

Bollig-Fischerordered construction workers to stop working until insurance inspectors could see the damage. When she returned outside, she saw the workers filling the hole they had created. She began yellingat construction workers, saying, "This is criminal. Stop," as she called police.

Aliccia Bollig-Fischer, 45, right, one of three owners of the UFO Factory is busy making phone calls after construction workers struck the building with a cement mixer, cracking the entire side wall.(Photo: Sarah Rahal/The Detroit News)

"I just don't want them to tamper with it," Bollig-Fischer said. "They are filling in the hole and weneed to get it inspected. We didn't request they do anything to help our building."

Abenefit for UFO Factory employees at El Club startat 7 p.m. Monday. Admission is freeand proceeds from food and bar sales will be donated to the employees.

A GoFundMesite has been set up with a $15,000 goal to give each of the 15 employees $1,000. It has raised $3,500 as of Wednesday evening.

srahal@detroitnews.com

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UFO Factory closes after construction incident - Detroit News - The Detroit News

Cincinnati Business Courier

Liberty Center lender raises concern about occupancy rates Cincinnati Business Courier Liberty Center, the $350 million mixed-use development in Butler County, could be turning into a problem child for the New York-based company that financed the construction of its retail space, WCPO reports. The CEO of Apollo Commercial Real Estate ...

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Liberty Center lender raises concern about occupancy rates - Cincinnati Business Courier

The UES is facing a retail vacancy epidemic

Availability is climbing on Third and Madison avenues faster than anywhere in the city: TRD analysis

In the heart of retails Gold Coast on the Upper East Side, the space that once housed trendy dress shop BCBGMAXAZRIA collects dust. The retailer called the five-story townhouse home at 770 Madison Avenue for over a decade, but shut the doors in February amid a larger corporate bankruptcy. The landlord has yet to find a replacement.

Over on Lexington Avenue, there are four retail vacancies near the corner of East 85th Street. And on the 13-block stretch of 3rd Avenue between East 70th and 83rd streets, there are only two blocks that arent marred by at least one empty storefront.

Manhattans streets are awash with empty storefronts after retail asking rents climbed to untenable levels and tenants started to push back. But the sheer number of vacancies on the Upper East Side is alarming: The Real Deal counted 82 empty storefronts along Madison, Lexington, Third and Second avenues between 57th and 96th streets during an afternoon in late July.

That is a lot, and theres probably 20 percent more thats on the market, in terms of space thats currently occupied and available for lease, said Greg Tannor, a retail specialist who left Cushman & Wakefield in April to join Lee & Associates as a principal.

Third Avenue between East 57th and 79th streets saw the biggest increase in its availability rate during the second quarter among the 11 retail corridors tracked by Cushman. The availability rate rose 7 percent year-over year to 16.6 percent, according to Cushmans most recent retail report.

And Madison Avenue between East 57th and 72nd streets saw the second-highest increase: a 5.3 percent jump to an availability rate of 23.5 percent, which is the third highest among the corridors the brokerage tracks.

The forces at play are different among Upper East Sides different retail corridors. Madison Avenue, for example, is one of the citys premiere luxury shopping strips with asking rents to prove it (an average of $1,431 per square foot).

Over on Third Avenue, asking rents average $283 per square foot, and experts in the area said the avenues shops are geared more toward chain apparel stores and national brands due to the kinds of large retail spaces that line the avenue. The struggles faced by national retailers, therefore, are having more of an impact on storefronts on Third Avenue than they would on a tony strip like Madison, brokers said.

Third [Avenue], I think, is the first market to really struggle with some of the difficulties were seeing with national soft goods retailers, Cushmans Steven Soutendijk said. Theyre the ones that are struggling in malls across the country.

In recent months, for example, stores went empty at 1030 Third Avenue when American Apparel closed up one of its last shops following a bankruptcy auction earlier this year. And Reebok left behind and empty storefront at 1132 Third Avenue after shutting down its FitHub location.

By comparison, Second Avenue is considered more neighborhood-focused, geared toward service retail like dry cleaners and restaurants located in smaller stores where top-line rents are more manageable.

Beyond the general woes facing retail, the avenue was long impacted by construction along the Second Avenue subway line, which finally opened earlier this year.

Certainly, now that the construction has completed, those vacancies should naturally have to fill in, Winick Realty Groups Kelly Gedinsky said. Theyre not obstructed by bridges over the sidewalk space anymore.

Lucas McGill contributed reporting

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The UES is facing a retail vacancy epidemic - The Real Deal Magazine

A rendering of River Place in downtown Wilmington. (Courtesy of the city of Wilmington)

In the revised agreement, the city of Wilmington and East West Partners, the Chapel Hill-based firm developing the project, are splitting an additional cost of $7.6 million, according to a release from the city.

The design for River Place was started two years ago. During this time, construction costs have escalated significantly. East West Partners has absorbed these costs and made creative adjustments in its plans, in both design solutions and construction methods, to partially accommodate these increased costs without sacrificing the quality of River Place," Roger Perry, owner of East West Partners, explained in an email. "In spite of these creative solutions, our final budget has, nonetheless, increased during this period by over $5M. It is perfectly understandable that the same has happened to the citys budget for the parking deck. This has been a very collaborative effort in creating a public-private partnership, and we are confident that as the city goes through this necessary process, it will see the value in making these budget adjustments so the project can proceed immediately."

Working with the general contractor Barnhill Construction on the project details, the city said revised cost estimates reflect construction price increases.

City spokeswoman Malissa Talbert attributed the cost increases to additional work on the site, finalizing design plans and an improving economy leading to higher costs since the price agreements were approved.

Cost of development was originally expected at about $75.6 million, but the new total in the development agreement that will be put to city council this month is around $83.2 million, according to numbers released by the development group.

Designs for the 13-story River Place project include condominiums, apartments, restaurants, a fitness studio, other commercial tenants and a new parking deck.

Officials had previously said construction of River Place was scheduled to be complete by mid-2019. The project appeared to experience delays after a ceremonial groundbreaking event in May.

The price adjustment is one of the next steps the city is taking in itspublic-private partnership with East West Partnerstoward the upcoming demolition of the old Water Street Deck and construction at the site, city officials said in the release.

Perry said Friday that another major factor in the cost is the price of labor, which has "increased significantly" since discussions about the project began.

As for the project timeline, Perry added, "These things are complicated and they take a long time, and I dont think its been slow; I think its been at a normal pace."

He said the first phases in the project are still expected to be ready late in the first quarter or early in the second quarter of 2019.

Almost 50 percent of the retail space has been leased out and 70 percent of the condominiums have been sold, Perry said Friday.

The market has been very receptive, Perry said. We are really excited about the building and weve enjoyed working with the city on the project. It's energizing and exciting because its such an incredible project.

The revised agreement will be up for a public hearing and approval by Wilmington City Council members at their Aug. 15 meeting. If the council approves the new agreement withthe added cost of construction, demolition could begin in October, Talbert said.

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City, Developer Expected To Pay More For River Place - Greater Wilmington Business Journal

WASHINGTON Close to 100 businesses in Wheaton that could be impacted by the ongoing construction of a new, 14-story Montgomery County office building and town plaza, may get compensated for interruption of their businesses.

The Montgomery County Council has created a Small Business Assistance Program to provide both technical and financial assistance to qualified downtown Wheaton, Maryland, businesses that can demonstrate financial impact to their businesses since construction began in June on the Wheaton Town Plaza project.

Construction is expected to last for three years.

Under the program, businesses could be eligible to receive up to $75,000 over the three year construction period for documented declines in their business directly attributable to the construction project.

The new, 308,000-square-foot Wheaton Town Plaza office building will be home to the Maryland-National Capital Park and Planning Commission, which is relocating from downtown Silver Spring.

It will also house several county departments and will have street level retail space.

Adjacent to the building will be a 20,000-square-foot entertainment plaza being built on the current site of the Mid-County Regional Services Center, which is moving into the new office building.

Big plans sometimes have growing pains, and to ease the pain of the existing small businesses that we want to be part of the revitalized Wheaton, we have created this innovative program, said County Executive Isiah Ike Leggett.

Before this project began, we promised these businesses that have been the fabric of Downtown Wheaton that we would provide help to them, and through this program, we are doing just that in a way rarely found in any development project in the nation.

Many of the businesses in the area are small, single-proprietor businesses with Latino ownership.

The program also includes nonfinancial assistance, including help with marketing and business planning that take into consideration the changes during construction.

The County said businesses can apply for assistance to the Countys Department of Finance, which is overseeing the program, starting Sept. 5 online.

The first of quarterly reimbursements could be made to businesses owners within weeks of applications, the County said.

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Businesses disrupted by Wheaton Town Plaza construction may be compensated - WTOP