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The New Normal?

New retail space in 2013 was once again heavy on redevelopment, expansion and outlet centers
One of the most notable Westfield projects completed last year was the $37 million redevelopment of Westfield Valley Fair in San Jose, Calif., in the heart of Silicon Valley, featuring an upscale dining terrace and a newly enhanced Luxury Collection.

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Year five and, once again, too few square feet in ground-up shopping center construction to rank the “Fastest-Growing Developers” as has been the Chain Store Age tradition for the 20 years prior.

Today, developers seem fated to redevelop and expand existing centers, develop 300,000-sq.-ft. to 600,000-sq.-ft. outlet centers and perhaps add an occasional grocery-anchored infill center.

Will it ever return to normal? Some developers say no and have converted to value-added acquirers, who buy distressed properties and reposition and manage them.

After the 1990 commercial real estate depression, some developers despaired of ever building another shopping center. As we know, their despair was unfounded. Landlords like the current market, where they can raise rents without losing tenants. But retailer demand for space is building. Sooner or later, ground-up development will kick back in.

It may already be starting. Take a look at the stellar work turned in by the Top Developers of 2013. And, just as we did over the last five years, we have arranged the companies alphabetically and highlight one or more 2013 projects from each. All new developments and expansion projects were completed between Jan. 1 and Dec. 31, 2013.

CBL & Associates Properties

Chattanooga, Tenn.

As always, CBL has worked its way into the thick of the development scene with new projects and renovations spanning 718,000 sq. ft.

In July 2013, CBL and joint-venture partner Horizon Group Properties opened The Outlet Shoppes at Atlanta, a 370,000-sq.-ft. center located in Woodstock, Ga., just north of Atlanta.

Ninety-seven percent leased at opening, the center is expected to draw more than 4 million visitors annually from a three-state area.

The site can accommodate an additional 30,000 sq. ft. of outlet shops, plus restaurants and additional retail on seven outparcels.

In November, CBL opened a 46,000-sq.-ft. expansion to Cross Creek Mall in Fayetteville, N.C.

Cullinan Properties

Peoria, Ill.

Cullinan Properties charged onto the Top Developer list with two projects opened in 2013: The Levee District at East Peoria Downtown in East Peoria, Ill., and the Streets of St. Charles in St. Charles, Mo., just north of St. Louis.

The Levee District opened 239,443 sq. ft. Anchors include Costco, Target, Gordmans, Ulta Beauty and Ross Dress for Less. The mixed-use project will eventually span 500,000 sq. ft. and include hotel, civic, office, retail and restaurant space.

During 2013, Streets of St. Charles opened 24,878 sq. ft. of space in a mixed-use building with Tucanos Brazilian Grill, MassageLuxe, Streets of St. Charles Dental, Prasino and Five Guys Burgers and Fries.

EDENS

Columbia, S.C.

EDENS made another appearance on the Top Developers list in 2013 with nearly 560,000 sq. ft. of new space. Two notable expansion projects illustrate the company’s continuing innovations in 2013.

The Mosaic District, EDENS’ innovative, Silver LEED for Neighborhoods urban creation in the Washington, D.C., suburbs, added new restaurants like Matchbox and Cyclone Anaya’s Mexican Kitchen as well as unique local retailers such as Sip & Swirl, Courage.b and Palace 5ive.

Opened in late 2012, The Shops at Stonefield in Charlottesville, Va., created an intimate shopping experience that connects to nearby neighborhoods. During 2013, EDENS added to the experience with new retailers and restaurants, including Pasture, Parallel 38, Orvis, Mincer’s University Imprinted, Altar’d State, and Alex and Ani.

Kimco Realty Corp.

New Hyde Park, N.Y.

Kimco maintained its customary spot on the Top Developers list in 2013 by adding a total of 1,639,791 sq. ft. to its portfolio. That total included an extensive redevelopment at the Richmond Shopping Center in Staten Island, N.Y.

The project included transforming an aging 102,000-sq.-ft. Kmart into a new 142,000-sq.-ft. Target, and adding an 8,000-sq.-ft. Miller’s Ale House. Additional credit tenants that opened at the center in 2013 include Old Navy, Five Guys, Five Below and Bank of America.

The new tenants coupled with renovated exteriors running throughout the center, including Pathmark’s exteriors, have revitalized the entire site and improved the stability of the recurring net operating income (NOI) and cap rate.

RD Management LLC

New York City

Consistently ranked among the nation’s largest privately held real estate development and management organizations, RD Management brought 603,755 sq. ft. of new shopping center space on line in 2013. Two notable developments include Orangeburg Commons in Orangetown, N.Y., and Target Shopping Center in Glenville, N.Y.

At Orangeburg Commons, RD Management built a new 51,823-sq.-ft. Stop & Shop supermarket, while developing and opening a new 129-room Marriott Residence Inn Hotel.

At the Target Shopping Center, which opened in 2012, RD Management added 31,816 sq. ft. of space and brought in several national retailers, including Sleepy’s, VisionWorks and GNC, along with a number of regional tenants.

Regency Centers

Jacksonville, Fla.

Top Developers mainstay Regency Centers opened up 858,107 sq. ft. during 2013, including the 325,325-sq.-ft. Grand Ridge Plaza in Issaquah, Wash.; the 89,654-sq.-ft. Shops at Erwin Mill in Durham, N.C.; and the 341,411-sq.-ft. East Washington Place in Petaluma, Calif.

Anchored by Safeway and Regal Cinemas, Grand Ridge Plaza is the only major retail center to serve Issaquah Highlands, a master-planned community near Seattle.

The Shops at Erwin Mill, anchored by Harris Teeter, is part of a larger mixed-use project encompassing two city blocks of retail, hotel, office and residential space serving the Duke University and Durham markets.

East Washington Place is a power center anchored by Sprouts, Target, HomeGoods, T.J. Maxx, Dick’s Sporting Goods and BevMo. The eco-friendly project is LEED Silver Certified.

Simon Property Group

Indianapolis

Simon opened a massive 3,370,000 sq. ft. of new and redeveloped space in the United States, Canada, Japan and South Korea during 2013.

Domestically, Simon redeveloped the 750,000-sq.-ft. Shops at Nanuet in Nanuet, N.Y., and the 580,000-sq.-ft. University Town Plaza in Pensacola, Fla.

Simon also expanded Sawgrass Mills in Sunrise, Fla., Seattle Premium Outlets, and Orlando Premium Outlets–Vineland in Orlando, Fla. Expansions ranged from 110,000 sq. ft. to 165,000 sq. ft.

The company also opened five new Premium Outlet centers, including St. Louis Premium Outlets and Phoenix Premium Outlets in Chandler, Ariz. Both centers feature about 350,000 sq. ft.

Internationally, Shisui Premium Outlets opened in Japan; Toronto Premium Outlets opened in Canada; and Busan Premium Outlets opened in Busan, South Korea. Square footages ranged from 235,000 to 360,000.

Taubman

Bloomfield Hills, Mich.

Taubman brought its outlet center brand to the 2013 Top Developers list. The 308,000-sq.-ft. Prestige Outlets Chesterfield is an upper-moderate fashion outlet mall in Chesterfield, Mo., just 20 minutes from St. Louis.

With approximately 70 fashion-focused retailers and a collection of popular restaurants, the open-air, village-style property creates a shopping destination for locals and visitors alike.

The center features a family-focused environment, dog-friendly hospitality and access to the Monarch Chesterfield Levee Trail, which is built atop a levee designed to protect Chesterfield from the Missouri River when it floods.

The project created approximately 750 construction jobs and more than 800 permanent jobs.

Tri-Land Properties

Westchester, Ill.

Tri-Land Properties brought two shopping centers encompassing 318,157 sq. ft. of space to market during 2013: The 140,461-sq.-ft. Fridley Market in Fridley, Minn., and the 177,696-sq.-ft. Ten Quivira in suburban Kansas City, Mo.

Tri-Land acquired Fridley Market in 2006 and implemented a redevelopment that downsized a 104,000-sq.-ft. Cub Foods to 62,736 sq. ft., moved Fridley Liquors into a new 10,500-sq.-ft. space, renovated 61,000 sq. ft. of space and added McDonald’s on an outparcel.

Tri-Land also purchased Ten Quivira in 2006 and implemented a redevelopment plan there. Today, a new 64,736-sq.-ft. Price Chopper anchors the center. Inline retailers include Prairie Point Quilt & Fabric Shop, Thai Home Place, Go Big Skill Toys, Saints Pub and Jimmy John’s.

Westfield

Los Angeles

Westfield marched onto the 2013 Top Developers list with 1,158,000 sq. ft. of new and redeveloped space. One of the most notable Westfield projects completed during the year was the $37 million redevelopment of Westfield Valley Fair in San Jose, Calif., in the heart of Silicon Valley.

The 99,000-sq.-ft. project included a new, upscale dining terrace, elegantly redesigned center court and a newly enhanced Luxury Collection. The Luxury Collection area of the center is now home to premier brands such as Nordstrom, Tiffany & Co., Louis Vuitton, Cartier, Prada, Burberry, Miu Miu, Salvatore Ferragamo, David Yurman, Tory Burch, Apple, UNIQLO, Zara, Michael Kors, Hugo Boss and Montblanc.

The Woodmont Co.

Fort Worth, Texas

In its second appearance on the Top Developers list — following last year’s debut — The Woodmont Co. completed two significant projects in 2013.

The first was a continuation of the Chimney Rock power center in Odessa, Texas, in the heart of what has been the fastest-growing Texas market. Following the addition of 54,361 sq. ft. of retail in 2012, Woodmont brought on another 64,023 sq. ft. this year. Academy Sports + Outdoors, Best Buy and Marshalls anchor the center.

Then there is St. Louis Premium Outlets, a 351,532-sq.-ft. outlet center with 90 stores. Woodmont built the center in partnership with Simon Property Group, which owns the Premium Outlet brand.

WS Development

Chestnut Hill, Mass.

WS Development redeveloped 407,751 sq. ft. of space spread among three properties during 2013. The properties include the 300,000-sq.-ft. MarketStreet Lynnfield in Lynnfield, Mass.; the 400,000-sq.-ft. THE STREET in Chestnut Hill, Mass.; and a 44,000-sq.-ft. building at 234 Berkeley St. in Boston.

WS calls the MarketStreet at Lynnfield its most significant project of 2013. It was the redevelopment of a property formerly owned by the Colonial Country Club. Whole Foods Market and Kings anchor the development, which features lululemon athletica, Hot Mama, J.Crew, Sephora, Shoe Market, Pottery Barn and many others. The ongoing project is currently developing an additional 100,000 sq. ft. of shops and restaurants.

© 2014