REAL ESTATE

Five top U.S. markets for luxury retailers

BY Marianne Wilson

New York – New York, Chicago, Las Vegas, Miami and San Francisco rank at the top of the list, reporting the highest luxury sales in per square foot, according to JLL’s “The New World of Retail Report.” But while core metro areas ranked at the top of the list of preferred locations, several emerging retail markets like Dallas, Houston and Orlando possess the attributes for longer term success driven by ongoing population and income growth.

According to JLL’s report, luxury retailers continue to perform extremely well, having experienced double-digit increases in sales revenue in the last few years as their clientele was minimally affected by the economic upheaval. The affluent customer segment, which represents the top 20% of U.S. consumers who earn more than $100,000 annually, only accounts for one-fifth of the population, but 40 percent of all consumer spending.

“Luxury goods embody elegance and acute attention to detail, and the storefronts and locations that encapsulate these treasures must be as unique as the goods themselves,” said Michael Hirschfeld, senior VP of JLL Retail. “The retail elite typically flock to core cities where they tailor service and product mix to shoppers, but many of these metros are saturated and that’s pushing expansion in secondary cities.”

The study, debuting at ICSC’s New York Conference. tracks the expansion of 350 retailers across the United States and assesses the vitality and attractiveness of retail markets, examining why the classic real estate principle of location, location, location remains essential to the success of brands.

While the United States isn’t a developing country with fast-track growth, its stability provides a safe haven for brands that can’t be matched. The United States continues to be the market of choice for luxury expansion because of the strong population growth, the variety and size of its markets and the influence of the millennial generation creating demand for innovation in retail concepts.

Luxury retailers will continue to eye opportunities in the historically strong and most well-known markets, like Manhattan, but also follow the robust population growth and housing market, according to JLL.

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Simon Premium Outlets heads into 2015 with 6.4 million sq. ft. in development

BY Marianne Wilson

Simon Premium Outlets heads into 2015 with 6.4 million sq. ft. in development

New York – Simon Property Group is expanding its Premium Outlets portfolio with a worldwide development pipeline of 6.4 million square feet and a total investment of $2.5 billion.

Currently, construction is underway on four new outlet centers that will open in 2015: Vancouver Designer Outlet, a 242,000 square foot center, will open in May and Gloucester Premium Outlets, serving the greater Philadelphia area, is a 375,000 square foot center that open in August.

Tucson Premium Outlets (366,000 square feet) and Tampa Premium Outlets (441,000 square feet) will open in October.

Also in 2015, Simon is slated to begin construction on five new domestic Premium Outlets, including Columbus, Ohio (355,000 square feet), Norfolk, Virginia (351,000 square feet), Clarksburg, Maryland (392,000 square feet), Tulsa, Okalahoma (318,000 square feet), and Denver, (350,000 square feet).

"Our Premium Outlets portfolio is firing on all cylinders and is the unquestioned standard bearer in the industry," said David Simon, chairman and CEO of Simon. "The pace of our new developments both here and abroad and the significant expansion of our landmark properties are unprecedented and a testament to the strength and quality of both our brand and organization."

New development within Simon's Premium Outlets portfolio continued to accelerate in 2014 with three projects opening in North America (Charlotte, Twin Cities, and Montreal). The properties opened well leased. Since 2012, Simon has also completed expansions at Seattle Premium Outlets, Orlando Premium Outlets – Vineland Ave, and Las Vegas Premium Outlets – South.

International growth continues to be a focus as well. Recently completed expansions include Toki Premium Outlets (Japan), and Paju Premium Outlets (Korea) with expansions underway at Premium Outlets Punta Norte (Mexico), Yeoju Premium Outlets (Korea) and Shisui Premium Outlets (Japan). Construction on new international Premium Outlets is slated to begin in Siheung (Korea) and Genting Highlands (Malaysia).

Currently, Simon operates 84 Simon Premium Outlets in the United States, Puerto Rico, Canada, Japan, Malaysia, Mexico and South America.

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Neiman Marcus will anchor The Shops at Clearfork

BY Katherine Boccaccio

Fort Worth, Texas – Simon will partner with Cassco Development Co. to develop the first phase of retail on the Edwards Ranch in Fort Worth into an approximately 500,000-sq.-ft. shopping destination. The Shops at Clearfork will be anchored by Neiman Marcus and include 100 high-end specialty stores, a premium luxury theater, and distinctive restaurants.

Construction will start in the spring of 2015 with a planned grand opening in February of 2017. The Shops at Clearfork is part of a larger 270 acre master plan for Clearfork.

"We are delighted to announce that we will build a new 90,000-sq.-ft. two-story Neiman Marcus store in The Shops at Clearfork, an exciting new mixed-use, open-air development in Fort Worth, Texas located along the Trinity River and just south of the city's dynamic downtown and arts district,” said Karen Katz, president and CEO, Neiman Marcus Group. The Clearfork store is slated to open in the spring of 2017.

The Clearfork Master Plan represents an integrated, mixed-use vision encompassing 270 acres in a multi-phase development project that will ultimately incorporate 2 million sq. ft. of office space, 1.2 million sq. ft. of retail, and 2,500 multi-family residential units at completion.

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