REAL ESTATE

Report: Chicago-area shopping center development shows uptick

BY Katherine Boccaccio

Oakbrook Terrace, Ill. — A Friday report by Mid-America Real Estate Corp. found that 2012 shopping center construction in the Chicagoland area grew 10% year-over-year, after a four-year decline.

According to the 2012-2013 Chicagoland Shopping Center Report, square footage increased from 1.02 million sq. ft. of space in 2011 to 1.14 million sq. ft. – a difference of about 113,000 sq. ft.

“It’s a start,” said Mid-America principal and author of the report, Andy Bulson. “And shopping center development already in the pipeline for 2013 is expected to increase GLA by another 900,000 sq. ft., to 2.04 million. So it looks like we’ve bottomed out and are slowly starting to see the end of the recession that stalled the shopping center development business.”

However, Bulson cautioned against expecting the recovery to meet the peak of 2007, when new shopping center construction reached an all-time high of 8.4 million sq. ft. “That will not be achievable in the foreseeable future and may not even be desirable for the business as a whole when you consider that this period of over expansion led to vacancies that are just now being absorbed,” he said. “What we are hoping for is growth that hovers around the historical average over the long run.” That average is about 4.2 million sq. ft. per year.

The report showed that, once again, the grocery category led the way in new construction, responsible for six of the seven projects completed in 2012. As in 2011, Mariano’s Fresh Market was the single largest driver in the grocery category, building one project in Palatine and two in Chicago. “Mariano’s has also committed to develop 5 new projects in 2013, so they’ll be continuing their lead,” said Bulson.

The home-improvement category, which was a leader in new retail development before the recession, was completely on the sidelines in 2012. And while Walmart did not have any new construction-related openings in 2012, Bulson said they will continue to be an active player and are expected to open two new construction locations in 2013.

Mid-America’s 2012 Shopping Center Report, which contains figures from all of Chicago’s collar suburbs comprising the Chicagoland region, showed that the City of Chicago continued to be the hottest driver of new retail construction in 2012, with four of the seven new projects delivered. However, where the suburbs did best in 2012 was in densely populated in-fill areas such as Palatine and Lombard.

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REAL ESTATE

Five Below to open 60 stores in 2013 and expand into Texas

BY Marianne Wilson

Philadelphia — Teen and tween retailer Five Below will open 60 stores this year, including its first-ever locations in Texas.

The retailer said it will open four to five stores in Austin, Texas, and 10 to 12 stores in Dallas by late summer, with the potential for more than 100 stars in the Lone Star Sate stores over time.

“Austin and Dallas are large markets and are a natural next step of our continuing expansion strategy,” said Tom Vellios, CEO and co-founder of Five Below. “In addition, Texas’ solid economy and family-oriented population are a perfect fit for Five Below’s brand-name, trend-right merchandise for teens, pre-teens, and shoppers of all ages, making it a promising new market as we continue to grow.”

Five Below’s new 600,000-sq.-ft. distribution center in Olive Branch, Miss., will support the Austin and Dallas areas, as well as support future expansion in and around the Texas market. The company will move into the new facility in spring 2013.

With the addition of the 60 planned stores for 2013, Five Below will operate approximately 300 locations in 19 states, from New Hampshire to Georgia along the East Coast to Illinois and Missouri in the Midwest. Five Below’s plan to open 60 new stores in 2013 will bring the number of locations to approximately 300.

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REAL ESTATE

Three major malls to be revamped

BY Katherine Boccaccio

Chattanooga, Tenn. — Mall owner CBL & Associates Properties said Thursday that, in 2013, it will complete multi-million dollar renovations at three major malls: Friendly Center in Greensboro, N.C.; Greenbrier Mall in Chesapeake, Va.; and The Mall of Acadiana in Lafayette, La.

The Mall of Acadiana – at one million-sq.-ft. and anchored by Dillard’s, Macy’s, J.C. Penney and Sears — will receive updated entrances, paint, new interior décor and graphics, upgraded restrooms, remodeled food court, new landscaping, as well as new amenities, including soft seating areas.

Friendly Center, a lifestyle and entertainment destination that features a 1.3 million-sq.-ft. complex, will receive updated walkway canopies and landscaping.

Greenbrier Mall will receive new upper-level carpet, paint, restroom upgrades, landscaping improvements, as well as a newly designed food court including new tables and chairs. The 900,000-sq.-ft. enclosed regional mall is anchored by Dillard’s, Macy’s, J.C. Penney and Sears.

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