Shopping Centers Today December 2016
Today's shopping centers are making neighborhoods more interesting and desirable places to live— SCT December 2016
The Common Area
By year-end, credit- and debit-card payments will have surpassed cash payments globally for the first time, according to Euromonitor International. And the trend looks set to accelerate. Consumer-card and mobile-commerce payments, now totaling some $23.1 trillion, are anticipated to grow by 6.6 percent and 23 percent, respectively, compounded annually between now and 2021. Global cash payments, meanwhile, are projected to grow by a comparatively meager 1.3 percent.
As CEO of real estate for Gordon Bros. (previously DJM Real Estate), a Boston-based global advisory, lending and investment firm, Mark Dufton has presided over some of the industry’s highest-profile commercial restructuring deals. The 20-plus-year veteran helped RadioShack sell off its commercial leases as the company navigated bankruptcy, and currently he advises Toys ‘R’ Us on lease restructuring. SCT spoke with Dufton about his management approaches and practices as well as his view on the state of the industry.
Cellphone service carriers continue battling for market share, and one battleground involves their networks of physical stores. Dominating the industry are the Big Four wireless phone services providers: AT&T, Sprint, T-Mobile and Verizon Wireless. All four have been on an aggressive growth track in recent years as they look to plant corporate and certified-dealer stores directly in the paths of their customers. Even amid signs of a slowdown, the sector retains a hankering to keep growing.— SCT December 2016
The Bottom Line
Another high-rolling investor is placing a bet on Las Vegas retail property. Institutional Mall Investors, a venture co-owned by Miller Capital Advisory and CalPERS, is buying the Miracle Mile Shops at the Planet Hollywood Resort & Casino, a 501,500-square-foot mall with street-level retail fronting the Las Vegas Strip. The sellers are TriStar Capital and RFR Holding.— SCT December 2016
Developers are hoping that a 1980s-vintage retail center in one of Southern California’s most heavily trafficked daytime-office corridors will become a nighttime draw as well, thanks to the opening of a new food hall. Lincoln Property Co. and private equity partner Alcion Ventures purchased Trade Marketplace, a 32,600-square-foot retail center in Irvine, Calif., near John Wayne Airport, in 2014. They have spent the last two years transforming its dated food court into a food-hall dining experience, complete with crafted cuisine from around the world, a full-service bar and indoor-outdoor communal dining.
On the Ground
Retailers looking to boost store count and open street-front stores in New York City are thinking about more than just target demographics: Now they can take advantage of more-affordable rents. Following some hefty increases in 2015, rents have actually fallen in 10 of the top 17 Manhattan retail markets since the fall of 2015, and asking rents for ground-floor retail spaces have dropped in several corridors, according to the Real Estate Board of New York