TUSTIN, CA (March 12, 2014) ― With retail vacancy at sub-5.5% in the Greater Los Angeles Area, ground-up development of neighborhood retail centers is making a comeback. The movement is evident by a number of infill projects in the pipeline generating leasing activity.
“While much improved, the general retail market remains unsteady given recent store-closure announcements by Staples, Radio Shack and other national retailers,” said Matt Hammond, Coreland Companies Director of Retail Brokerage. “However, local neighborhood developments are thriving, especially those not reliant on big box anchors.
“Leasing activity continues to steadily increase and developers are regaining confidence as evidence by a number of neighborhood retail ground up developments in the 10,000 to 50,000-square-foot range.”
Hammond shares that today’s proposed ground-up developments have two main similarities. They are primarily attracting the interest of restaurant and service tenants, and all are infill sites. Both are characteristics that support broader retail trends. Today, opportunities exist in the restaurant and service tenant categories―those not affected by e-commerce―and on sites situated in established areas.
Coreland Companies’ retail brokerage team, including Hammond, Ben Terry and John Heard, is currently involved in two ground-up developments:
Montclair Shoppes is a 20,000-square-foot ground-up development located off the 1-10 Freeway and Central Avenue in Montclair, Calif. A project of BOSC Realty Advisors, it is an ideal destination for quick-service restaurants and local services as it sits adjacent to Costco and the recently-acquired Montclair Plaza. The neighborhood shopping center is expected to be completed by year end.
Shops at University Park is an 18,030-square-foot retail development of JR Watson & Associates Development Co. Located minutes from Interstate 215 in San Bernardino, Calif. it is positioned directly across the street from the main entrance of the Cal State University San Bernardino campus. With ample patio and plaza area, as well as optimal visibility on the NEC corner of University Parkway and Northpark Boulevard, Shops at University Park is a prime dining and service opportunity to serve the student population.