Survey: 92% of retailers plan to increase openings
Los Angeles A survey of U.S. retailers conducted by Los Angeles-based CB Richard Ellis, the world’s biggest commercial property broker, showed that 92% are planning to increase store openings this year.
The report, “Shop Talk — A Retailer’s Perspective,” also finds that despite an improving economy, nearly all the retail executives surveyed believe that retailers will either fall or remain flat throughout the remainder of 2010.
“Our survey shows that retailers are increasingly more confident about their growth plans for 2010, and even more so for 2011,” said Anthony Buono, executive managing director of CBRE Retail Services in the Americas. “Although they remain cautious as to the overall impact of the global economy on the domestic market, most remain optimistic about their prospects for their own businesses, near- term as well as long-term.”
The findings in the report include:
- Ninety-two percent of respondents were planning to increase the number of new store openings anywhere from 5% to 200%. Of the retailers that had expansion plans, 66% of the requirements were for stores smaller than 10,000 sq. ft. Only 8% of respondents were planning on reducing the number of locations in 2010.
- Forty-eight percent of respondents think that rental rates will continue to fall in 2010, and 43% think that rental rates will remain flat. The respondents that expected rental rates to increase were mostly global or regional retailers with space requirements under 25,000 sq. ft.
- Seventy-three percent of retailers were able to negotiate tenant improvements with their landlords in the past year. Among that segment of survey responders, 65% stated that rent reductions were the most common incentive, followed by limited tenant improvements to space and the right to terminate early.
- While 70% of respondents are currently using social networks to increase branding and marketing of their products, only 38% felt that these efforts were adding value and 56% felt that it was too early to gauge the impact.
The report surveyed more than 100 retail executives across all business lines and was conducted between March and April of 2010. More than 60% of the retailers surveyed were either global or national in scope. Respondents included a cross-section of participants from various retail categories (including apparel & accessories, discount stores, restaurants, electronics & appliances and home furnishings) located in a wide range of retail property types (including regional centers, community centers and power centers).
ICSC recognizes top shopping center achievements
Las Vegas The International Council of Shopping Centers (ICSC) has announced ICSC’s Best-of-the-Best Award winners. The winners were named during the annual Best-of-the-Best Awards ceremony that took place at RECon 2010 on Sunday in Las Vegas.
The awards honor and recognize the most outstanding examples of shopping center design and development, sustainability, marketing, and community service worldwide.
“This year’s winners have set themselves apart from the rest of the retail real estate industry by creating a unique and exceptional design, campaign or program,” said Michael P. Kercheval, president and CEO for ICSC.
Shopping Square Meydan in Istanbul, Turkey, took home the award for the best in sustainability. Shopping Square Meydan acts as a green oasis in the middle of a city district dominated by concrete edifices by offering a place to stroll and picnic. It also incorporates such ecological aspects as cooling and heating systems, which are provided by one of the largest geothermal systems in Europe, and natural roof meadows.
The shopping square combines shopping and leisure time activities with 50 different shops, a food court with restaurants and cafes and a movie-theater complex, representing a new generation of retail properties in Istanbul.
CentralWorld in Bangkok, Thailand, won for best design and development. CentralWorld underwent a multimillion dollar transformation that created a visually and physically accessible mixed-use complex with over 2 million sq. ft. of retail space. The new center connects directly to the elevated light rail and busy ground level major cross streets, creating a more opportunities to engage the public.
Meanwhile, SunEdison from Developers Diversified Realty won for best marketing. Developers Diversified’s partnership with SunEdison generated $1.2 million by leasing their largest unused asset, rooftops, and having SunEdison pay rent for the right to deploy solar energy across Developers Diversified’s portfolio. The national solar program also reduced energy costs, allowing the company to pass along savings to tenants. In addition, the new recurring revenue stream, estimated at $40 million, came at no tangible expense to the company at a time of extreme capital preservation. Annual clean energy use at the three New Jersey properties is likened to taking 3,000 cars off the road.
Jones Lang LaSalle Retail expands under new corporate banner
Las Vegas Jones Lang LaSalle Retail has broadened its retail rollout expertise under a new banner called Corporate Retail Solutions (CRS). Formerly known as Retail Outsourcing Services, the expanded client service team provides a full range of outsourced real estate services for its retail clients, managing both their new store rollout process and their existing store portfolios.
Jones Lang LaSalle, a financial and professional services firm specializing in real estate, is in its third year of building a robust and comprehensive service offering for retail tenants/occupiers following the firm’s acquisition of The Standard Group in 2008.
“Being able to provide an end-to-end lifecycle solution for all of our client’s real estate requirements is critical in today’s rapidly changing retail environment,” said co-lead and managing director of corporate retail solutions Joe Brady. “Retailers are facing increasing challenges as a result of a continuing volatile economy and they need our help now more than ever.”
The team’s portfolio of clients includes financial institutions, sporting goods and electronics retailers, automotive, grocery and furniture stores. Over the past 18 months, the practice has nearly doubled in size and tripled the number of clients it serves.