Magazine article Journal of Property Management

Retail Prevails: Lifestyle Centers Put Retail out in the Open

Magazine article Journal of Property Management

Retail Prevails: Lifestyle Centers Put Retail out in the Open

Article excerpt

When the recession hit, industry insiders proclaimed the multifamily market would withstand the downturn better than other property types. But, retail sector has proven to be the most resilient.

According to Marcus & Millichap research, retail properties yielded a total return of 14 percent overall last year compared to apartments (9 percent), industrial (7 percent) and office (3 percent); and unlike in the multifamily sector where rental rates have fallen, retail rents are currently growing at about 3 percent annually. The current performance of the retail sector is being fueled by new trends, such as the lifestyle center.

Lifestyle centers are open-air centers that typically aim to recreate a "Main Street" feel and generally include distinctive storefronts; detached buildings; ample parking; a town-square area with fountains, lush landscaping and benches; and a mix of restaurants, upscale shops and entertainment. The idea is to engage a shopper with a movie, a book, a cup of coffee and an environment convenient to browsing.

Lifestyle centers offer managers some important opportunities and challenges.

* Focus on retail mix. The retail mix of lifestyle centers is key to both its marketing and financing. Retail center managers and leasing professionals must be proficient at tapping into customers' lifestyles and providing the right combination of stores, entertainment attractions and amenities.

* Creative deal structures. Retail real estate professionals need to demonstrate creativity in integrating lifestyle and service uses. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.