The Southern California Chapter of NAIOP brought together three industry leaders on July 16 to address ‘What’s Trending in Retail Real Estate?’ Chris Wilson of Champion Real Estate and JLL, Kevin McCook of Shea Properties and Chris Hite of Coreland Companies presented various case studies to best exhibit today’s market trends.
The members-only event held at The Pacific Club in Newport Beach focused on the latest in retail sales, development, repositioning and leasing.
Wilson opened the discussion by focusing on the overall ‘downsizing’ of the industry. “Today’s typical neighborhood center is 60,000 square feet, versus the 100,000-square-foot centers we were developing in 2007,” he shared. “Just as an example, Target went from 180,000-square-foot supercenters to the 25,000-square-foot urban footprint they are targeting now.”
Showcasing examples from various Shea Properties’ developments such as Bressi Ranch, Alhambra Place and Del Sur Town Center, McCook framed the discussion by identifying the five retail trends that have guided Shea’s development and leasing efforts: smaller centers, non-traditional supermarket anchors, ample food, quality gathering spaces, and mixed-use.
Hite, referencing Kensington Real Estate Group’s Fairfield Commons as an ideal example, discussed the makings of the post-recession shopping center.
“Today’s shopping centers are needs-based centers that provide destination retail, restaurants and entertainment,” shared Hite. “Retailers have downsized and the market is thriving with non-traditional anchors such as fitness centers and specialized grocers.”
All agreed that this recovery has been different in the retail sector in comparison to past recessions,.
“Based on the industry experience we’ve gained through the last few cycles, it’s more valuable to focus on what we learned and we can we do to better prepare for future cycles, instead of focusing on what is yet to come.”
For more information on NAIOP Southern California, please visit http://www.naiopsocal.org/.