CBL breaks ground on The Crossings at Marshalls Creek
CHATTANOOGA, Tenn. — CBL & Associates Properties announced that construction has started on The Crossings at Marshalls Creek, a 103,000-sq.-ft. shopping center development in Stroudsburg (Middle Smithfield), Pa.
The shopping center will be anchored by Price Chopper grocery, Rite Aid, STS Tire and Auto Centers and Family Dollar and will feature approximately 22,000 sq. ft. of stores and restaurants. The grand opening is scheduled for June 2013.
Report: U.S. shopping-center industry posts healthy Q2 net income gain
New York — Total operating income of all shopping centers on a square-foot basis in the second quarter of 2012 rose 4.9% from the same quarter last year, while operating expenses rose by a larger 5.8%, according to a new quarterly shopping-center benchmarking report from The National Council of Real Estate Investment Fiduciaries (NCREIF) and the International Council of Shopping Centers (ICSC).
Despite expenses outpacing income gains, net operating income (NOI) per square foot actually improved by a solid 4.5% in the quarter, compared with the second quarter of 2011.
“Second-quarter NOI for the shopping-center industry helped increase the total investment return by 3.0% over that same period,” said Jeffrey R. Havsy, director of research for NCREIF. “Retail was the best performing property type in the second quarter and occupancy rates for all-shopping centers remained steady at 90%.”
Shopping center performance in the United States differs widely by type of sub-sector, according to real estate data collected by NCREIF. The net operating income of powers centers during the second quarter energized the industry with its 8.6% year-over-year gain. Neighborhood-center net operating income posted a 6.1% gain, while super-regional malls gained 5.4%, compared with the same quarter of the prior year. However, the metric for community centers and regional malls were down in the quarter.
Michael P. Niemira, VP of research and chief economist for ICSC, said that, "[Surprisingly,] power centers have consistently been a strong performing segment of the industry over the past year and a half. Despite lingering concerns about the big boxes which support the power center format, those centers have clearly been profitable since 2011.”
Shopping center space in Europe to expand 25% in 2012
London — New shopping center development in Europe is expected to increase by a quarter in 2012 to meet retailer demand for modern, high quality retail space, according to the latest research by global property adviser CBRE.
Turkey is the most active market, accounting for one-third of new space delivered in the first half of the year. This is some way ahead of Germany, with Italy and Poland just behind.
“A highly active shopping centre development market in Turkey, Poland and Russia is enabling retailers to grow store networks there, but elsewhere the number of new centres is more modest, providing fewer opportunities for expanding retailers,” said Neville Moss, head of EMEA Retail Research, CBRE. “Crucially, very little of the new space addresses the lack of prime units in major city centres — the most sought after locations by retailers — and consequently some are finding it difficult to achieve their store expansion plans.”
Emerging markets have dominated new development in recent years, but construction activity continues space in the more mature European markets to meet retailer demand. In 2011, the big five western European markets (Spain, Italy, France, Germany and United Kingdom) accounted for one third of all new shopping centre space in Europe.