Sunday, March 24, 2019

AmeriBest Home Care Inks Deal in Philadelphia

Health services company AmeriBest Home Care signed a 17,330-square-foot lease at Arts & Crafts Holdings’ Class B office building in Philadelphia.

The 160,000-square-foot, seven-story structure at 990 Spring Garden St. was built in 1920 and renovated in 1998. Spanning an acre, the building is less than five blocks from the Spring Garden subway station.

Amazon Leases Distribution Building in Harleysville, Pennsylvania

Online retailer Amazon leased Patriarch Management’s Class A distribution building in Harleysville, Pennsylvania.

The 98,000-square-foot, single-story structure at 2001 Gehman Road comprises 10 loading docks, one drive-in bay, 40- by 40-foot column spacing and a 28-foot clear ceiling height. Built in 1989, the facility spans 8.3 acres just off of the Northeast Extension of the Pennsylvania Turnpike.

The facility is slated to open in summer 2019.

Saturday, March 23, 2019

PREIT Redeveloping Woodland Mall with New Retailers

by Steve Lubetkin,

PREIT has continued the repositioning of Woodland Mall, further establishing its presence as the premiere retail, dining and entertainment destination in Grand Rapids, the second largest city in Michigan. The makeover includes a 90,000-square-foot retail lease in the former Sears store, and the second location for The Cheesecake Factory restaurant in Michigan.
“With the addition of a fashion department store, the region’s only Apple store and The Cheesecake Factory, this property will take its place as a trophy mall and a top-performer in our portfolio,” says Joseph F. Coradino, CEO of PREIT. “The high-impact redevelopment of Woodland Mall is delivering a diverse and robust tenant mix that aligns with our portfolio quality improvement efforts.”

First-to-portfolio retailer Von Maur, which will occupy 90,000 square feet in the former Sears space, is set to open in the fall. This location will be the high-end department store’s first in the region. Von Maur will be joined by Urban Outfitters and a series of other new-to-portfolio and new-to-market retailers at the mall. REI will open in a 20,000 square-foot outparcel in the second quarter 2019 – bringing the in-demand outdoor clothing, gear and footwear brand to the region.

The project will feature other high-impact tenants, strengthening this market-dominant asset.  As the second largest redevelopment underway in PREIT’s portfolio, Woodland Mall is expected to deliver nearly 20% NOI growth in 2020.
To elevate the dining experience and expand the mall’s trade area, PREIT has signed up The Cheesecake Factory for its second location in Michigan and its only location in more than 50 miles.  The 8,500 square foot restaurant is expected to open late October 2019. The Cheesecake Factory is known around the globe for its extensive menu, generous portions and legendary desserts.

“Since opening our first restaurant in Beverly Hills more than 40 years ago, The Cheesecake Factory has become known for creating delicious, memorable experiences for millions of guests around the country, and we’re so pleased to be opening our first restaurant in Grand Rapids,” says David Overton, founder, chairman and chief executive officer of The Cheesecake Factory. “We look forward to opening in Woodland Mall this fall.”

The Cheesecake Factory will join Black Rock Bar & Grill, an award-winning steakhouse and first-to-market experiential dining offering, with an anticipated opening this summer.

Complementing these high-quality and diverse retailers, this Fall, Woodland Mall will also welcome Tricho Salon, a salon featuring the top hair styles, designs and products as well as makeup and waxing services.  An innovator in the salon business since 2003, Tricho Salons boasts 12 locations across the US.

PREIT has continued to evolve the retail mix at the mall, with new and upgraded store prototypes from key retailers including Altar’d State, Apple and LUSH.  These stores will also be joined by newly renovated prototypes from Williams-Sonoma and Bath & Body Works, which will relocate their stores to the newly-created Von Maur wing.

During the 2018 holiday shopping season, Woodland Mall experienced strong growth in foot traffic, which is expected to be enhanced with these new additions.

Thursday, March 21, 2019

National Retail Properties Maintains Lengthy Dividend Increase Streak (Video)

US Leasing May Reach Highest Point in a Decade

U.S. office leasing is surging, and it may keep rising for at least the next year.

Expansions by technology giants such as Amazon, Google and Facebook and financial firms such as Deutsche Financial Services pushed the national office vacancy rate to single digits last year for the first time since the early 2000s, falling to 9.8 percent in the final quarter of 2018 from 10.1 percent for the same time a year earlier, according to a CoStar analysis.

Total U.S. leasing volume for 2018 will probably top 400 million square feet for the fifth straight year when analysts finalize the tally, probably setting a new high for leasing in the past decade, exceeding 450 million square feet, CoStar analysts said. New York led all markets with 42 million square feet of leasing last year, followed by Los Angeles, Washington, Dallas, and Chicago.

“Given this level of leasing activity, we’re pretty confident that demand will remain pretty strong over the next year or so,” said CoStar Managing Director and Senior Economist Robert Calhoun. “Our forecast calls for vacancies to continue to fall into 2019, despite some pretty significant supply on the way.”

Keeping the market in balance is the relatively light amount of overall office construction relative to the past 15 years, helped by something of a paradox.

"Markets like New York, San Francisco, and Boston are seeing record levels of new construction, perennially oversupplied markets like Atlanta, Dallas, Houston, and Phoenix have seen relatively little new supply," said CoStar Managing Consultant Paul Leonard.

Construction of mega projects like the $25 billion Hudson Yards in New York City, 61-story Salesforce Tower in San Francisco and the redevelopment of Boston’s Seaport District have added millions of square feet and challenged the traditional notion that these gateway markets are “supply constrained.”

Strong leasing and low vacancies haven’t translated into impressive rent growth for the past several years, however. Rents grew just under 2 percent in 2018, the smallest amount since 2011 and well below the decade’s peak rate of 6 percent in 2015. CoStar expects rent growth to slow further, especially in the largest cities, with rents leveling out in 2021 as the economy sheds jobs.

At Home Décor Store Leases 95K SF at Former Kmart in Willow Grove, PA

by Steve Lubetkin,
At Home, a home décor superstore, has signed a long-term lease for the former Kmart at 2620 W. Moreland Road, in Willow Grove, PA. TLM Realty brokered the lease for the property owner.
The 94,500 square foot property is situated at the foot of Willow Grove Mall, a three-story, 1.2 million square foot enclosed mall. Michael Oestreich, senior vice president, TLM, spearheaded lease negotiations on behalf of ownership.

 At Home recently commenced construction of its store and plans a summer 2019 opening.
There is currently another outparcel piece being marketing with W. Moreland Road frontage for ground lease that can support up to 8,000 square feet of retail or restaurant space.