celebrating 10 years - The Retail Connection
Transcription
celebrating 10 years - The Retail Connection
Volume 7, Issue 1 Spring 2014 INSIDE RETAIL ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. For a complete listing of the 250 plus retail chains TRC currently represents, see page 12 and for details regarding their stores and expansion plans, see our website: www.theretailconnection.net 10+ B y S T E V E N A . L I E B E R M A N & A L A N P. S H O R The celebration of our first ten years Another great plus is being based in together as The Retail Connection has Texas, the fastest growing economy in given us the opportunity to reflect on the the nation, growing at 60% faster than enterprise that we have evolved into and the U.S. and creating more jobs than all that we have ahead. We are extremely any other state in the country. Texas is proud of our team and business platforms, the 14th largest economy in the world and appreciative of all our invaluable and our GDP is expected to grow 5% in clients and partners that have connected together to make our first decade a 10+. STEVE LIEBERMAN CEO Today, TRC has 90+ employees, 2014 versus the U.S. at 3.2%. Our 5.7% unemployment rate [vs. the country’s 6.7%] has been at or lower than the national rate for 7+ years and since 1995, ALAN SHOR PRESIDENT represents 250+ retail and restaurant clients and 25+ million square feet Texas has experienced a 31.5% increase in jobs -- and will produce over of retail projects. Our Dallas, Houston, San Antonio, and Austin teams 300,000 new jobs in 2014, a 2.75% increase over 2013. not only lead our clients throughout Texas | Southwest retail markets, but from Mexico City to New York City, and coast to coast; structuring a billion+ dollars in transactions annually. Our investment services platform, The performances of our retail markets have followed suit, with solid sales comps and shopping center occupancies rising above equilibrium— DFW Connected Investments Services [CIS], extends the reach of our clients’ at 90%, Austin at 95%, Houston at 90.5% and San Antonio at 91.4%. New expansion programs by virtue of the enhanced scope of solutions we retailers coming into the state include: F21 Red, Gordman’s, Hollywood deliver to meet their needs, which has made us one of the most prolific Feed, Mattress One, Nebraska Furniture Mart, Shake Shack, True Food retail developers and investors in the Southwest. Focused exclusively on Kitchen, Yard House and while others are continuing to expand such as tenant-driven collaborations, TRC | CIS led joint ventures have acquired, Bed Bath & Beyond, Dollar Tree, Fitness Connection and Nordstrom Rack. redeveloped and developed over four million square feet of shopping centers to date, including most recently, the 700,000+ square foot Village at Cumberland Park, the first major retail development in Texas since the recession. We currently have 3+ million square feet of projects in the What are the plusses ahead? New stores for our clients as their businesses evolve and they continue to adapt responsively to the marketplace, including omni-channel strategies and related dynamics. With retailers looking to development and acquisition pipeline and another 3+ million square feet grow and occupancy in existing centers above equilibrium, we are seeing under property management. We have recently expanded our development several existing retail properties redeveloped and new developments division with new leadership in San Antonio and South Texas, and also created to meet these growth objectives. Our Connected Development added senior leadership within our National Advisory Services platform. team alone has 3+ million square feet of retail development in our pipeline, On the operating side of the ledger, our Connected Capital group has seen including our 700,000+ sq. ft. center in Tyler, Texas, two centers totaling three of our first eight [now ten] portfolio companies 675,000 sf in Benton, Arkansas, 450,000 square feet successfully go public. in Killeen, Texas, 200,000 square feet in Terrell, and We are as excited as ever for all ahead and believe that the next several years will continue to be very strong ones for our industry. Interest rates, while CELEBRATING 10 YEARS rising slowly, will remain low. Housing has rebounded commitment will never change. Our team + our client development, which creates a positive domino effect partners are the best in the industry, and we are for retail. Unemployment continues to improve and at 82.3%, is at its highest level since 2008. 1 remain the cornerstones of everything we do. Like to market dynamics, however, that focus and Existing inventory is tight, triggering new residential and about the economy. In fact, consumer confidence, Our focus on retail and commitment to our clients our clients, we will continue to adapt responsively strongly with housing starts up 30% this year. overall, consumers feel good about keeping their jobs 150,000 square feet in Houston, Texas. 10 years. one focus. unlimited possibilities. very grateful for each and every one of you. Our first ten years were a 10+ and we look forward to all our positive experiences and the next 10+ ahead. CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. R E TA I L R E P O R T | E X PA N D I N G F E AT U R E D N E W L I S T I N G S N E W R E TA I L E R S Since Fall 2013 Since Fall 2013 Dallas: Alpha Parkway Plaza | NEC Tollway & Alpha | Dallas | 170,000 SF Renaissance Square | US 287 & Berry Street | Ft. Worth | 325,000 SF with future 150,000 SF building Parker Central Plaza | NEC HWY 75 & Parker Road | Plano | 153,000 SF Preston Park Colonnade | NWC Preston & West Park | Plano | 185,000 SF Austin: G Great Hills Market | NWC Hwy 183 & Great Hills Trail | Austin | 154,866 SF Great Hills Station | NEC Hwy 183 & Great Hills Trail | N Austin | 127,936 SF Boardwalk Shopping Center | NEC IH-35 & SH-45 | Round Rock | 184,606 SF I Springwoods Plaza | South of Anderson Mill on Pond Springs Road | Austin | 20,000 SF D Houston: Beltway 8 & Veterans Memorial Dr. | NWQ Beltway 8 & N Veterans Memorial Dr. | Houston | 14.38 Acres SEQ Interstate 45 & Nasa Road 1 Bypass | 22 Acres NEW TRC TEAM MEMBERS NWQ FM 518 & Kirby | 5 Acres A Interstate 10 & Yale | 150,000 SF San Antonio: P Huebner Oaks | IH-10 & Huebner | San Antonio | 400,000 SF Christina Beauchamp Partner San Antonio Tony Filley EVP Brokerage Dallas Adrian Gonzalez SVP Brokerage Austin X Receptionist Dallas Dave Berndt La Plaza Del Norte | Loop 410 & San Pedro | San Antonio | 320,067 NEW LANDLORDS E Since Fall 2013 Sandra Greenfield Mark Griffin Brady Maus Jenny Reynolds Bryce Jones Eddie Kopplow Rachel Shor Jamie Streeter Admin. Professional Construction Mgr. | CDS Development Associate Associate | Brokerage Construction | Dallas Dallas CDS | Dallas San Antonio Analyst | Brokerage Dallas Matt Squire VP | Brokerage Dallas 2 EVP Brokerage Dallas Marketing Assistant Dallas SVP Brokerage Dallas 10 years. one focus. unlimited possibilities. CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. R E TA I L R E P O R T | S E R V I C E S | A W A R D S AWARDS Comprehensive Services BROKERAGE Te n a n t R e p r e s e n t a t i o n Project Leasing General Brokerage & Investment Sales ADVISORY E x p a n s i o n S t r a t e g y | Te n a n t Merchandising Plans | Property Retail Operations INVESTMENT Acquisition Development Strategic Capital Merchant Banking 2013 DBJ Best Real Estate Deals Awards Winner | Top Golf | The Colony DBJ Top Brokers in Retail Steve Lieberman | Jeremy Zidell DBJ Largest Tenant Representation The Retail Connection 11 | 25 DBJ Largest Commercial Developers | 9 | 25 HBJ Heavy Hitters Award Winner | David Stukalin D CEO CRE Awards Winner | Top Golf | The Colony MANAGEMENT D CEO CRE Awards Property Management Asset Management Construction Management Marketing Services Corporate Services Finalist | Nordstrom Rack | Gallery On The Parkway D CEO Top Real Estate Pros in DFW 2014 [Retail] Steve Greenberg | Steve Lieberman | John Mathes Terry Syler | Mitch Traub | Jeremy Zidell D CEO Top 25 Commercial Real Estate Brokerages in Dallas-Fort Worth | 17 | 25 Real Estate Forum’s 2014 “Tommorows Leaders” | Jeremy Zidell T R C E x pands N at i o na l A d v i s o r y S er v i ces P l at f o rm w i th m o re S en i o r Leadersh i P | Ta p p i n g i nt o Gr o wth E x p erts By Adrian Gonzalez Growth can be difficult. There isn’t a business around that does not spend nearly every waking moment trying to figure out how to grow. For a retailer or concept, growth sometimes appears to be the most daunting of tasks. Whether expanding your assortment or creating new brands, growing your business is essential. The most impactful route is often the old-fashioned route – organic growth. Finding and opening new locations is a critical path to achieving a 3 to 5-year growth plan. And we are ready to help. The Retail Connection is now expanding a proven platform to help retailers achieve those plans and more importantly, achieve those plans profitably. We have expanded Advisory Services to help retailers and concepts across the nation. National Advisory Services provides an end-to-end solution for any retailer looking to increase their footprint. The number of moving parts and steps to move from a strategic vision to physically opening new locations can be staggering. Equally challenging can be repeating the process consistently across the country. All these steps are intimately connected and must be balanced against the long-term goal. We understand the entirety of this process. From creating and executing an expansion strategy to optimizing an existing portfolio, the National Advisory platform offers services beyond site selection. The platform is already in place and paying off dividends for brands such as Bed Bath & Beyond, Visionworks and Top Golf. We are fully capable of supporting our clients anywhere along this process. In addition, we can help our clients ensure they are “growth ready”. Growth should not come at the expense of day-to-day operations. Using our collective experience and witness to best practices of some of the best retailers in the world, we can help ensure our clients’ processes and resources are ready to execute a multi-store campaign. We can help bring speed and efficiency to a process that can sometimes become a point of pain, rather than an advantage. We certainly have great experience and proven track record of finding the right location and making great deals for our clients. But we also have experience which goes beyond the typical definition of brokerage. In fact, I like to think of us more as growth experts. If you would like to know more about how to expand your growth opportunities for a maximum return on investment, contact me. We would love to talk to you. 3 CONNECTED SERVICES Connected Development Services specializes in all aspects of the development, re-development and renovation of retail projects and also advises retailers on their development strategies as well as structuring development joint ventures. Connected Acquisition Services advises its retail clients and structures joint ventures to purchase retail investment properties, which can be single-tenant, multitenant or even portfolio assets. Connected Capital Services assists and provides entrepreneurs and emerging growth retail and restaurant chains with operating expertise and sources of capital for their operating businesses. Connected Management Services provides retail property management services based on the owner’s objectives, the tenant’s needs, getting your property noticed by retailers and achieving a quality shopping experience. Construction Management Services Our construction management team has over 50 years of diverse construction and retail real estate development, redevelopment, and renovation experience. CONNECTED DEVELOPMENT SERVICES CONNECTED ACQUISITION SERVICES CONNECTED CAPITAL SERVICES CONNECTED MANAGEMENT SERVICES CONSTRUCTION MANAGEMENT SERVICES CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. R E TA I L R E P O R T | D F W R E TA I L R E P O R T | H O U S T O N TRC Brokerage | A True 10 and More Fun Ahead Su ccess in Houst on Keeps Add ing By STEVE ZIMMERMAN By DAVID STUKALIN As we reflect on 10+ great years of growth at TRC, there is no better place to look than the DFW Brokerage group. In this short period we have grown to 27 teammates in DFW ranking TRC as the third largest pure retail brokerage group in the city, only slightly behind companies that have been in business more than twice as long and the most productive by a significant measure. Over the past year our industry has seen a tremendous amount of consolidation STEVE ZIMMERMAN and movement by brokers. We have been MANAGING DIR. | Brokerage fortunate to strengthen our roster with some of the best, most seasoned free agents in the city including Jenny Reynolds, Tony Filley, Matt Squire and Jamie Streeter. Each individual had multiple opportunities in the marketplace and their decisions to join TRC further validates and strengthens the power of our platform. Houston continues to be a stand-out market in Texas and the U.S. as it relates to overall economic growth and stability since the recession peaked in 2009. In fact, Houston was named as one of the top 5 fastest growing cities in America by Forbes Magazine last year, and shows no signs of slowing down anytime soon. According to the Forbes report, Houston had a GDP growth of 12.3 percent between 2007 and 2013, and DAVID STUKALIN population growth of 9.2 percent. In 2012, PRESIDENT | Houston Houston became the No. 1 U.S. metropolitan area for exports, surpassing New York City for the first time. In addition to landing some of the best brokers, we continue to add great new retail clients, over 30 in the last year, including Costco, Ross Dress for Less, Barnes & Noble and Torchy’s Taco’s and now represent over 250 retail and restaurant chains. We extended our national presence in 2013 by closing transactions in 29 states as well as Mexico for clients such as VisionWorks, Top Golf, Rally House, Bed Bath & Beyond and PetSmart. We remain focused on increasing our national presence and recently hired Adrian Gonzalez who has spent the past 15 years as the Vice President of Real Estate for Golfsmith, transacting leases across the country. We have also had a strong year of growth on the project leasing side of our business. Last year we added 131 new listings totaling approximately five million square feet. This includes RIO-CAN, MIMCO, Crow Holdings, DDR, Invesco, and a five-center portfolio from RPAI in San Antonio. We currently represent over 27 million square feet of shopping centers and several ground-up developments including a new Sprouts development in Mansfield, Texas, a Kroger and Academy Sports anchored center in Benton, Arkansas and the 700,000 square foot Village at Cumberland Park in Tyler, Texas. The growth in our brokerage group and clients over the past 10 years is a direct reflection of the commitment by our entire team to produce outstanding results, from administrative assistants, marketing, research, accounting and brokerage. It has been a tremendous 10+ years and based on the culture of our team, I have no doubt that we are only just beginning. P R O M O T IO N S Vital to the economic health of Houston is that people are moving there in large numbers, due to our diverse economy, Texas’ no state income tax, and low cost of living. Houston surpassed Philadelphia in population and became the country’s fifth biggest metropolitan region, with 6.1 million people. The city is expected to add 140,000 new households by 2017, the largest increase in the nation. To add to those accolades, job growth in the economically diverse city has matched or exceeded the state of Texas rate since 1995. Houston was the first major city to regain all the jobs lost in the downturn, and has now added more than two jobs for every one it lost after the crash. Houston’s unemployment rate at year-end 2013 was 5.5 percent, compared to nearly 7 percent during the same period in 2012. An almost 2 percent increase in 12 months. Now that’s incredible. This consistent economic improvement has ultimately led to impressive retail real estate growth and opportunity over the past 5 years. Houston’s resiliency and ability to outperform the rest of the country has peaked the interest of retailers from luxury, to mainstream to value, and especially those that are in growth mode. As a result, Houston’s retail market posted its best overall occupancy rate in a decade due to continued retailer expansion during a time of limited new construction. As of year-end 2013, the market posted an occupancy rate of 91 percent, the highest level to be reached in more than a decade. The occupancy rate represents an increase over the year-end 2012 rate of 89.5 percent and shows the retail market is benefitting from the strength of the overall Houston metro economy. Because of the continued improvement, along with demand for all types of space inside the loop, the market has seen a number of new and expanded in-fill projects, including mixed-use projects that combine retail with residential, office or other uses. Class A rental rates are ranging from $28 to $37 per square foot. TRC | Houston has taken full advantage of the city’s unprecedented growth and has continued to drivea steady stream of notable deals, some of which include: Annette Conely Director Human Resources Dallas Beau Cromwell Director of Information Technology | Dallas Yale Street Market – 100% leased – 150,000sf development located at the SWQ IH-10 & Yale Street with LA Fitness, Sprouts, Cost Plus World Market, Guitar Center, Mattress Firm & Sprint The Park at Katy Mills – SEQ Katy Mills Blvd & Market Place Drive in Katy, TX – 16 acre power center development located adjacent to Katy Mills Mall with 145,000sf in retail | restaurants. Estimated opening 4th qtr. 2015. Willowbrook Plaza – Bed Bath & Beyond, buybuyBABY, Cost Plus World Market and DXL all opened in 2014. Five Below store opening June 2014, and we are currently negotiating over 50,000 sf of new leases throughout the center. New pylon sign located along SH 249 Feeder Road and monument sign located along Gessner Road. Brident Dental – The Houston office has been busy assisting Brident Dental with their rollout which projects to open 20 new locations in the Greater Houston market by the end of 2015. Rob Darnell Director of Research Dallas 10 years. one focus. unlimited possibilities. Zac Hoffer Daniel Fuller Associate | Brokerage Houston EVP | CDS Dallas Carla Neel SVP Property Management Asset Services | Austin 4 Jonathan Probst Senior Vice President Brokerage | Houston Matt Wilson Vice President | CDS & CAS Dallas Team TRC Houston closely resembles the attributes of the city of Houston; steady growth, strong, resilient, experienced, and dedicated to providing extraordinary service to our clients and partners. We are thrilled to be a part of helping to grow such a vibrant and diverse city, and we all look forward to the retail opportunities that are just around the corner. CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. R E TA I L R E P O R T | A U S T I N RETAIL REPORT | SAN ANTONIO A u st i n i s P o s i t i v e ly On F i re S an A nt o n i o Pr i med f o r R eta i l Gr o wth By LANCE MORRIS By NICK ALTOMARE | DAVE BERNDT | SHERMAN HINKEBEIN The Texas capital, with an unemployment rate of 5.2 percent (compared to the state’s 5.5 percent) and five-year wages growth from October 2008 through 2013 of nearly 15 percent, is experiencing the best economic recovery of the top 5 cities in America. The biggest reason why Austin is in this elite 5 is due to its job-growth record for being the only city in the nation with doubledigit percentage job growth in that fiveLANCE MORRIS year period, at just under 11 percent. By PRESIDENT | Austin comparison, no other U.S. city has seen five-year job growth higher than 8 percent. Austin is also a hotbed for creativity, technology and business. A place where small business thrives (No. 1 for Small Business – Forbes.com) Austin is leading the region’s growth (Best City for the Decade – Kiplinger Finance Magazine) while maintaining a global competitive advantage with technology start – ups as well as high profile tech firms opening offices in the central Texas city. Austin has just the right mix; education, government and now a fast – growing IT sector along with good venture capital to back it all up. As a result of the job explosion, population is increasing rapidly too, and retail is following suit, with a plethora of new restaurants, services and nationally acclaimed products and brands. The Austin retail market is now reporting an overall occupancy rate of 95%, thanks to steady demand for space and extremely limited new construction. Austin’s occupancy rate has remained above 90% for more than a decade, with the low point being a healthy rate of 90.5% in 2006. The improving retail occupancy has led to a tight market for space in key trade areas, As a result, rental rates for small-shop space continue the upward trajectory and rates for well-located pad sites are even stronger. The availability of well-located Class A retail leads the market with average rents above $30 per square foot. The market is seeing a bump in construction for small neighborhood strip centers in the 15,000-square-foot range which are primarily being built to meet demand for restaurant, medical office and other small uses. As a result of the robust market, TRC | Austin continues to grow its presence as one of the preeminent retail real estate brokerage and investment firms in the Central Texas region. For the first three months of 2014, TRC Austin has closed well over $30 million in real estate sales. Some of the more noted TRC | Austin sales transactions in the past few months include: Property 2.5 acre multi-family development site at North Lamar & North Loop 22.5 acre pad site development on Hwy 71 West 360 Retail [14,000 SF shopping center in downtown Austin] 9222 Parmer Lane [6,000 SF shopping center] Shops at Silverado [30,000 SF Shopping center] 45 acres from ACME Brick to H-E-B 10 acre development site in Killeen 2.2 acre Hotel site on Hwy 45 & IH-35 It does not take a rocket scientist to see all of the opportunities and attributes of this thriving Central Texas city as Austin continues to be positively on fire. TRC | Austin is proud to continue to provide the highest quality retail services and professionals to our clients and partners in this dynamic market. C o n g rat u l at i o ns Alan Shor and Zach Shor for finishing the 2014 Boston Marathon B oston S trong ! 5 NICK ALTOMARE EVP | San Antonio DAVE BERNDT PARTNER | San Antonio SHERMAN HINKEBEIN EVP | San Antonio San Antonio continues to experience one of the fastest growing domestic migration rates, increased housing values, and progressive business environments in the U.S. With a population of over 1.3 million people, and an MSA population of over 2.2 million people, the Alamo City [and metro area] was named the 20th fastest growing city in the U.S. in 2014 by Forbes Magazine. It experienced 1.83 percent population growth rate in 2013. In 2013, San Antonio ranked No. 11 on Forbes’ list of the Best Places for Business and Careers, boasting a ranking of 9th best market for job growth. Famous for the Alamo, the River Walk, the Tower of the Americas, the Alamo Bowl, Marriage Island and host to SeaWorld and Six Flags Fiesta Texas theme parks, the city is visited by approximately 26 million tourists per year. It is also home to the four- time NBA champion San Antonio Spurs and the annual San Antonio Stock Show & Rodeo, one of the largest in the country. With a strong business foundation built around healthcare, technology, financial services, oil and gas, tourism and a strong military presence, San Antonio continues to attract national credit retail chains, top – tier restaurants, as well as new retail development and redevelopments throughout the area. On the retail real estate front, San Antonio posted another great year of strong occupancy in 2013 with a rate of 91.4% as compared to 90.2 a year ago. Throughout 2013 and into first quarter 2014, the market has experienced a good level of activity as a result of the fact that San Antonio is considered one of the country’s top – performing economies. In 2013, construction exceeded the total over 2012, with over 560,000 square feet of project expansions or redevelopment activity. Almost all of the development is grocery driven. The big box development has still been slow, but several neighborhood centers have been developed or expanded over the last 6 months such as Dominion Ridge, Quarry Village Phase II, and a new phase to The Rim to name a few. Rents have remained fairly steady as well. Average Class A rents for small shops are currently ranging from $23 PSF to $30 PSF. Additionally, there has been a health club craze in the area, such as Freedom Fitness which has grown to 3 locations in a very short period of time, LA Fitness has 2 pending locations and Gold’s Gym which has 2 pending locations. New retail chains such as Sprouts and Trader Joes, Walmart and HEB all continue to be very active and have opened several stores in the metro area. San Antonio saw the opening of Walmart’s first Neighborhood Grocery store with 4 more locations pending. The number of Walmart Supercenters has grown from 19 in 2013 to 27 in 2014, and they have 4 more known locations pending. HEB has 6 known locations pending as well. In the six major submarkets of San Antonio, North Central, Northeast, Northwest, South Central, Southeast, and Southwest, all but one of them had decreases in vacancy over the past year. And, during 2013 and into 2014, San Antonio’s retail centers reported stability and higher occupancy rates across the board. Just a few of the transactions The Retail Connection inked in 2013 and early 2014 include: Top Golf at The Rim; Salata at Huebner Oaks and The Plaza at Concord Park; Kneaders Bakery in its first SA location at Stone Oak Parkway at Hardy Oaks; and Music & Arts Center in the Forum. San Antonio’s thriving retail market continues to benefit from the metro area’s solid economy and fast growing population, and is showing no signs of slowing down anytime soon - proving the region’s incredible vitality and long-term growth opportunities for retail and retailers who capitalize on the marketplace in this part dynamic part of the state. CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. C O N N E C T E D | R E TA I L E R S F o r a c o m p l e t e l i s t i n g o f t h e 2 5 0 p l u s re t a i l ch a i n s T R C c u r re n t l y re p re s e n t s , s e e o u r w e b s i t e : w w w. t h e re t a i l c o n n e c t i o n . n e t 6 retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail retail CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. C O N N E C T E D | R E TA I L C E N T E R S F o r a c o m p l e t e l i s t i n g o f t h e 3 0 0 p l u s r e t a i l c e n t e r s T R C c u r r e n t l y r e p r e s e n t s , s e e o u r w e b s i t e : w w w. t h e r e t a i l c o n n e c t i o n . n e t ARLINGTON HIGHLANDS | ARLINGTON HIGHLANDS EAST DENTON CROSSING EAST & WEST HUEBNER OAKS Arlington, TX Denton, TX San Antonio, TX BENTON TOWN CENTER GREAT HILLS MARKET & GREAT HILLS STATION HURRICANE CREEK VILLAGE LA CASCATA Killeen, TX LAS COLINAS CENTRE MUELLER MARKETPLACE DISTRICT Austin, TX MURPHY MARKETPLACE ROBERTSON’S CREEK Flower Mound, TX THE CROSSROADS AT TERRELL THE VILLAGE AT CUMBERLAND PARK WALDEN PARK 7 Terrell, TX SHACKLEFORD CROSSINGS THE OUTLETS AT CUMBERLAND PARK Benton, AR Austin, TX Benton, AR Irving, TX Murphy, TX Little Rock, AR DELLCREST YALE STREET MARKET HWY 183 & FM 1431 LEWISVILLE TOWNE CROSSING REDEVELOPMENT | FORMER TARGET SHOPS AT VISTA RIDGE | VISTA RIDGE PLAZA San Antonio, TX Houston, TX Cedar Park, TX Lewisville, TX San Antonio, TX Lewisville, TX Tyler, TX THE PARKS AT KATY MILLS Katy, TX VILLAGE ON THE PARKWAY Dallas, TX Tyler, TX TOWNE CENTRE PLAZA Mesquite, TX Austin, TX WILLOWBROOK PLAZA Houston, TX WOODPARK Houston, TX CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. Connected Development Services | CDS Tenant Driven Development Adds Up of a search to meet the needs of our retail clients. The centers are not By DAVID WILSON necessarily larger centers either. A smaller operator, Madison Salon Developing to meet the needs of retailers and consumers constantly changes. As we get going again, post great recession, this fact second story facility. We certainly respond to the needs of other retailers as well. In Benton, of empty spaces either previously occupied Arkansas, we are underway with a 110,000 square foot center to be Demand is growing for new space to meet the expansion plans of those retailers, PRESIDENT | CDS located 25,000 square foot project where we will meet their desire for a has never been more apparent. The supply or not, has just about been eliminated. DAVID WILSON Suites, who needed a location in Irving, Texas, is kicking off a very well restaurants and services who made it through the recession, who have sharpened anchored by Kroger and Academy. And, we have just started the search to meet the needs of a soft goods box user represented by another brokerage firm that has been very happy with our coordination with them in two other centers we have recently worked with them on. their offering, and have determined what their new needs are. Since opening the doors as The Retail Connection a little over 10 years Connected Development Services is looking forward to doing our share. ago, we have completed the development or redevelopment of about Our focus is to respond to the needs of the retailers, particularly those 1,350,000 square feet of space. We own and are underway, at some stage represented by the brokers of The Retail Connection. The projects we are of development or redevelopment, with another 2,100,000 square feet of underway with punctuate this fact. In Tyler, Texas, we are developing a space. And, we have under control and are working on another 1,700,000 700,000 square foot center that grew out of the needs of several of our square feet of new development. clients, including Bed Bath and Beyond who wanted to expand their store to incorporate a department for Buy Buy Baby products and to add an adjacent store for Cost Plus World Market, Gordman’s, Studio Movie Grill, Famous Footwear, JoAnn’s, DSW Shoes, Compass Trading Company, and We are off to a good start in the post-recession new economy, but we know it will not all be smooth sailing. There are, with each development, going to be significant challenges. The users want to Destination Maternity. The project has been quickly embraced by several be sure that they have a complimentary tenant mix that meets their other great retailers including TJMaxx, Petco, Beauty Brands, Ross, Old needs, so, co-tenancy requirements are pretty stiff. This makes it Navy, AT&T, Vitamin Shoppe and many others. In Killeen, Texas, we are pretty difficult to put a deal together quickly and getting the time working on a project triggered by JoAnn’s Arts and Crafts. When they could needed will not be easy. Banks and equity are skittish about this not find existing space to meet their needs, The Retail Connection and issue, to say the least. The users need to keep their occupancy costs Connected Development Services got busy to identify the optimal location in line, but significant increases in costs of labor and materials will and to gather the necessary co-tenants to create a center to meet their make it difficult to keep rental rates down. Interest rates are down as needs. We will end up with a 450,000 square foot project that will include are cap rates, but can we expect them to be comparable to current JoAnn’s, TJMaxx, Conn’s, DSW Shoes, and many others. This project is to be shadow anchored by a 117,000 square foot HEB grocery store. levels in 4 years? The past ten years has prepared us for this new market and our team has grown in talent and experience. We look We have a number of other locations we are working on that are all results forward to these new challenges and opportunities. Connected Management Services | CMS Property Management Makes Huge Leaps investment market, combined with our comprehensive market and By Carla Neel project sale and several repositioning transactions. management expertise, CMS also assisted in a recent purchase, a the In Austin, after our TRC brokerage team made the sale, we brought in the property management division of The Retail management of the Shops at Silverado, a 38,000 square foot neighborhood Connection center. The Austin team was also awarded the management and leasing Connected Management has Services, experienced significant growth in the past several years, thanks to a solid marketing strategy, stellar team, and of Great Hills Market and Great Hills Station which is 300,000 square feet of prime retail in the Arboretum area of the city. outstanding management services. Since In Houston, we have seen many changes at Willowbrook Plaza after the managing its first center in 2007, the team team executed a landscape remodel and coordinated the build-out and has since won projects totaling over 3.8 move in of several high profile tenants including Bed Bath and Beyond, million square feet. Buy Buy Baby, Cost Plus World Market and DXL Menswear. And things are heating up further in 2014, With several other prospects on the horizon, we anticipate this pace to with a very active first quarter, where we finalized over 400,000 square continue beyond the second half of 2014, and we see nothing but great feet of management contracts. With Texas being such a sought after things to come. Connected Management Services takes an integrated approach are being met. Managers or qualified assistants are available 24|7. We are accountable for every aspect of property management, and we work overtime to ensure we exceed your expectation. Carla Neel SVP | Property Mgt. Asset Services to Property Management. Our entire team is made up of real estate management, development, construction, leasing, and marketing veterans. We know the shopping center landscape intimately, and we apply that expertise every day to your investment. We know that you hold us to a very high standard, which works in conjunction with the expectations we have of the property management team. Property Management includes literally hundreds of tasks, both large and small, on a daily basis. Connected Management Services has internal controls in place to ensure all of our Standard Operating Procedures 8 Connected Management Services provides retail property management services based on the owner’s objectives, the tenant’s needs, and the ability to get your property noticed by retailers, all of which ultimately provide a quality experience for our shoppers. Carla Neel 512.485.0887 [email protected] CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. C onnected A c q uisition S ervices | C A S A c q u i s i t i o n M ar k et a P l u s f o r In v est o rs A simple test is to look at the demographics section of almost any sales By STEVE HEFNER market. Focus on the population growth rate projections for the next package offering of an income-producing property currently on the five years. Offerings in almost every state with major metropolitan areas As I look back to an acquisitions piece I wrote show typical growth rates over the next five years at around 3-5% total. from three years ago, I can see a lot has come Now, compare that to properties for sale in Austin, Houston, Dallas and true. The “unparalleled buying opportunities” I San Antonio, where the projections average around 12-14% growth for mentioned did in fact happen. In the last three the same metric. That is staggering. Those population growth numbers years, collaborations with our retail clients are what entices retailers to continue to want expand in Texas. As a have been the catalyst to our acquiring Village on the Parkway, Shackelford Crossings, Towne Centre Plaza, Willowbrook Plaza, a Target STEVE HEFNER redevelopment in San Antonio and several PRESIDENT | CAS small acquisitions throughout Texas. All totaled, we have acquired over 1,300,000 square feet of retail properties in retailer, you simply cannot expand without the presence of customers and proximity of those customers. When the population growth rates are that high, retailers salivate to be there. They want to know not only who is there now, but how many potential customers will be there in the next 10+ years. It is simple economics. the last three years. All were purchased as this improving economy began. So, where are you going to place your bets? Texas, clearly. There is no In addition, jobs now seem to be in a creation mode [albeit not at normal comparison. Now, blend those demographic projections with a team like recovery levels, but who is complaining], the demand for commercial real The Retail Connection, who has the most powerful Texas knowledge estate has definitely increased and the limited supply of new product has out there. A team with a 10-year track record that represents over 250 filled the vacancies and grown rents. retailers and restaurants. A team that has acquired over 1.3 million Then to now, we have been poised to capitalize on market inefficiencies and in fact, we have. Our retailer collaborations and capital have led us to purchase the right assets while preserving our fundamentals. We continue to balance responsive and responsible very well and as such, we currently, have three properties under contract for 2014 and are evaluating several others. square feet in the last three years and developed over 1.7 square feet in the last 10 years. The in-house capabilities are astounding and Texas will continue to lead the nation in economic recovery, population growth and opportunity. That was true in the last 10 years and is on track to be true for the next 10 years. Our equity partner relationships have grown as well, and all are very bullish Another great thing about recovery is that we can not only buy in an on Texas. Indeed, Texas will continue to have strong population growth and improving economy, but also harvest properties. We have sold over should grow to over 40 million people over the next 10 years. That is well- 1,000,000 square feet of properties in the last two years, all of which we had over a 50% growth rate over the period, which equates to over a 5% annual held for an average of seven years. That again, is simple economics for us. growth rate for the entire state, which is astounding. When you dial down We buy and re develop, then effectively lease and manage to an occupancy to the places where retail resides, those population growth projections are stabilization point. Then, as we are in the value creation business, we will staggering. The US Census Bureau says 14 million new residents will set sell once the income on the property is stabilized. Historically, real estate up in Dallas/Ft. Worth, Houston, Austin and San Antonio by 2030. That is cycles occur every 10 years. So, 2014 is the start of the next great 10-year double the size of those cities now. cycle for real estate, The Retail Connection, its clients and partners. T RC | A c q u i s i t i o ns TOWN CENTRE PLAZA Mesquite, TX Best Buy | Bed Bath & Beyond | DSW 94,109 SF Woodpark Shopping Center WILLOWBROOK PLAZA AMC | Bed Bath & Beyond | buybuyBaby | DXL Saltgrass | World Market 384,556 SF | www.willowbrookplaza.com Spring, TX FORMER TARGET | Redevelopment Under Contract 143,850 SF 9 Houston, TX San Antonio, TX Trade Area: North Star Mall | The Quarry 20,000 SF-66,000 SF CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. T R C | C E L E B R AT I N G 1 0 Y E A R S T R C B log C han g e i s N o t J u st Im p o rtant — It M o b i l i z es Us t o B e B etter R eta i l S t o res A re S t i l l A l i v e and Kicking By STEVE LIEBERMAN By ALAN SHOR From the beginning of commerce, business has always been channeled through ports—whether it was waterways, railroads, highways, airports, or otherwise—and major markets have always grown around these portals. Just look at London, New York, or any other alpha city that originated on a sea port, or the gateway cities such as Chicago, Dallas, and Atlanta, where airports have led to explosive growth (not to mention more than $30 billion of annual economic impact to their respective regions). The fundamental difference today is that these portals are so concentrated, they are on our desk and in our pockets everywhere we go. READ MORE… It seems that the traditional brick and mortar retailer is under siege. If you do not have a significant “omni-channel” presence or are not part of “webrooming” with your customer’s tablets or cell phones, then you cannot compete or worse yet, may be doomed to fail. Yet, simple facts contradict this conclusion. Simply put, the lead factor for retail success— location, location, location—remains alive and well. http://theretailconnection.net/blog-post.aspx?id=321 http://theretailconnection.net/blog-post.aspx?id=324 We all hear about how the growth of e-commerce continues to explode and will over time, significantly erode business at the brick and mortar stores. This has been the rumor for many years. Yet today, 94 percent of retail sales are still rung up in the stores, which is why having the right location is the difference between success and failure. READ MORE… LI E B E R M A N C H A I R E D 2 0 1 4 E M M I T T S M I T H C E L E B R I T Y INVITATIONAL RAISES $1 MILLION MAGIC JOHNSON AND WIFE COOKIE RECEIVE FIRST-EVER ROGER STAUBACH AWARD Almost 1,000 friends and leaders from the sports, entertainment and business worlds’ joined to support Pat and Emmitt Smith Charities star-studded annual gala featuring Roger Staubach, Magic Johnson, and Darius Rucker, as entertainment, raising over $1 million for the charitable foundation. Real estate pro’s, including Steve Lieberman, who along with his wife Lisa, were the Event Chairs, Alan Shor, Jenny and Steve Reynolds, David Fazio, Peter Russell, Steve Johnson, John Gates, Jack Crews, Ken Shulman, Tim Hughes, Steve Schwartz, David Weinreb, John Weber, Sr. and Jr. were among the all-star lineup supporting and celebrating the success of the foundations mission of providing unique educational experiences and enrichment opportunities for underserved children. Please go to www.patandemmittsmithcharities.org for more information and learn how you can support. 10 CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. L A N D L O R D R E P R E S E N TAT I O N ACME Brick Company AEW Capital Management, L.P. Albert Sign Company, Inc. AmREIT Ascension Development Ashley Furniture ATCO Atlantic Hotels Group, Inc. Beltline Preston, LTD Benchmark Operating Partners Berkeley Investments Berlin Interests, Inc. Billingsley Company Blue Star, LP Bromont Group The Brytar Companies Burk Collins & Co., LTD Capital City Partners Captex Development Co., LLC Catellus Catlyn Capital Corp. Centennial Real Estate Company, LLC CFT Cheney & Mathes Properties Clearview Investments, Ltd. Commercial Realty Group [CMC] Connected Acquisition Services Connected Development Services Connected Management Services Corinth Properties Covington Partners Crosland Group Crow Holdings Dalsan Properties DDR E2M Partners Edry Commercial Properties Education Realty Trust ECOM Real Estate Management Elite Shopping Centers Management, Inc. Endeavor Real Estate Group Family Video Farrell Properties First Capital Advisors First State Bank of Central Texas Fountain Capital, LP Global Fund Investments, LLC Grace Development Granite Properties Greenway Investment Company Guggenheim Real Estate H-E-B Heitman Hunt Properties, Inc. Inland American Invesco Karns Commercial Real Estate Karsh Capital Management Kimco Realty Corporation L3 Investment Properties, LLC Langford Property Company Ledcor Group Levcor, Inc. M&J Wilkow, Ltd. Maly Commercial Realty Margaux Development Company Mark R. Smith Co., Inc. Midwood Investment and Development Mila Properties Mimco, Inc. Moore & Associates North American Development Group One Liberty Properties, Inc. Orix PEBB Enterprises Petroff Realty Phoenix Property Company PLS Realty P’OB Montgomery & Co. Ponderosa Land Developmentt Co. Premas Global Leander, LLC Provident Realty Advisors, Inc. Provost Group Quattro Development, LLC Red Sea Group Retail Properties of America, Inc. Riverside Resources RM Realty Group, LLC Rosebriar Properties Sam Moon Trading Company Seitz Group, LLC Select Strategies Realty Showbiz Cinemas SMI Realty Management Spire Realty Group, LP St. Ives Realty, Inc. Standridge Companies Starpoint Properties, LLC Stonewood Investments Terra Enterprises Tex-Can Real Estate Group The City of Cedar Park The Encore Company The Stainback Organization TPJ Properties, LTD TPMC Realty Corporation Trammell Crow Residential United Heritage Credit Union U. S. Industries Vaquero Ventures Vista Property Company Westdale Real Estate Investments Westwood Financial Corp. Wolverine Interests World Class Capital Group LET’S CONNECT T R C In v estment U p date Development: Arlington Highlands | Arlington, Texas | 625,600 SF Arlington Highlands East | Arlington, Texas | 109,727SF Mansfield Pointe | Mansfield, Texas | 150,000 SF Weatherford Ridge | Weatherford, Texas | 381,000 SF New Developments: The Village at Cumberland Park | Tyler, Texas | 700,000 SF Benton Town Center | Benton, Arkansas | 350,000 SF [1st Phase] Hurricane Creek | Benton, Arkansas | 230,000 SF La Cascata | Killeen, Texas | 473,000 SF The Crossroads At Terrell | Terrell, Texas | 225,000 SF 1st Phase The Park at Katy Mills | Katy, Texas | 150,000 SF Re-Development: Village On The Parkway | Addison, Texas | 381,000 SF 10 years. one focus. unlimited possibilities. Former Target | San Antonio | 120,000 SF come visit us at our booth Acquisition: las vegas ICSC Quorum Plaza | Dallas, Texas | 77,800 SF suite S243 Shackleford Crossings | Little Rock, Arkansas | 286,000 SF Town Centre Plaza | Mesquite, Texas | 94,096 SF Q street and 24th [south hall] Willowbrook Plaza | Houston, Texas | 384,663 SF please join us for cocktails Woodpark Shopping Center | Spring, Texas | 143,850 SF sunday, may 18th | 3 pm – 5 pm san antonio HOUSTON AUSTIN DALLAS 11 CELEBRATING 10 YEARS ONE FOCUS. UNLIMITED POSSIBILITIES. 10 years. one focus. unlimited possibilities. T E N A N T R E P R E S E N TAT I O N Cowboy Star Cozymels Cru Wine Bar Cupcakes Cubed Cyclone Anaya’s Daily Juice Dairy Queen Dallas Chop House Dallas Fish Market Deli-News Destination Maternity Destination XL Dollar Stop Dollar Tree Dr. Martens Drive Time Automotive DSW Shoes Dunkin’ Donuts East Hampton Sandwich Co. Elite Appliances Emergency Service Partners Enduring Brands Eno’s Tavern EntertainMart Equinox Fitness Ethan Allen Explore Learning EZ Money EZ Pawn Family Video Famous Footwear Firepit Texas Grill Firestone Complete Auto Care Fish City Grill Fitness Connection Fletcher’s Jewelry Fleuvog Shoes Foot Locker Forty Five Ten Freddy’s Frozen Custard Freed’s Furniture Friday’s Furr’s GameStop Garden Ridge Golfsmith Great Clips Hallmark Harbor Freight Tools Hardee’s Haverty’s Furniture Haymaker 1/2 of 1/2 Name Brand Clothing A Pea In The Pod Advance Auto Parts Afrah Mediterranean Restaurant & Pastries Ai Sushi Sake Grill Al’s Formal Wear AMC Theaters Another Broken Egg Anytime Fitness Applebee’s Aruba Tan AT&T Austin Lobster Rolls Baguette Et Chocolat Baker Street Pub & Grill Barnes & Noble Battery Giant Becks Prime Bed Bath & Beyond Benedict’s Restaurant Bicycle Sport Shop big drop NYC Bikinis Sports Bar & Grill Black-eyed Pea Black Sheep Lodge Blaine’s Dallas Boi Na Braza Bolsa Brident Dental British Beverage Company Brooklyn’s Pizzeria Buffalo Wild Wings Burger King buybuy Baby Cannondale Casual Male Catherines Cedars Mediterranean Mezza Cedars Woodfire Grill Celebrity Bakery Chase Bank Chelsea’s Kitchen Chicken Scratch + The Foundry Chiladas Fresh Mex Grill Chop House Burger Christmas Tree Shops Complete Nutrition Costco Heavenly Pie Hibashi Teppan Grill Hillstone Restaurant Group Hobby Town USA Hoffbrau Steaks Houston’s Howard Wang’s Grill Humperdink’s IHOP Impress for Less IntegraCare Iron Cactus Italia JCPenney Jerry’s Wood-Fired Dogs Jersey Mike’s Subs Jet’s Pizza Jo~Ann Stores Jos. A. Bank K&G Menswear Kerry Simon Kids Park Kleiman|Evangelista Kneaders Bakery & Cafe Knockouts Kool Smiles Kozy LA Fitness La Grande Orange Lammes Candies Lane Bryant Lazy Dog Restaurant & Bar Lemongrass Le Studio Lids Locker Room Lifetime Fitness Little Caesar’s Little Katana Local Pour Logan’s Roadhouse Malai Kitchen Mama Pita Mattison Avenue Mattito’s Maurices Max Bookman Training Mealey’s Furniture Men’s Wearhouse Micro Center Mimi Maternity Motherhood Maternity Music & Arts My Fit Foods Navy Federal Credit Union New Sound Hearing Aids Nordstrom Rack Ocean Prime Optum Healthcare Paciugo Palm Beach Tan Panda Express Panera Bread Company Papa John’s Papa Murphy’s Paradise Bakery Pei Wei Asian Diner Performance Bike Pesce PetSmart Pho Chateau Pho is for Lovers Physicians ER Piada Italian Street Food Pick A Fit Foods Piranha Killer Sushi Planet Fitness Planet Sub PLS Realty Portrait Innovations Prana Princi Italia Project Pie RA Sushi R+D Kitchen RadioShack Rainbow Shops Raising Cane’s Rally House Texas Red Robin Regency Beauty Regional Management Corp Resolute Fitness Ritz Wolf Camera Rochester Big & Tall Rockler Ross Dress for Less Rubio’s Mexican Grill rue21 Ruggeri’s Italian Kitchen Safeway Salata Sal’s Pizza Sam Moon Trading Co. Sammys Texas BBQ Sarku Japan Steakhouse Savers Shake Shack Sherlock’s Pub Simply Fashion Stores Sleep Experts Smoke Smoothie King Snappy Salads Sonic Drive-In Sonny Bryan’s Souper Salad Sports Authority Star Power Starbucks Steak Frites Steiner Eye Care Studio Movie Grill Styles for Less Swatch T-Mobile Limited TaMolly’s Taverna Rossa The Blue Fish The Holy Grail Pub The North Face The Office The Original Pancake House The Protein Bar The Sweet Tooth Fairy Tiff’s Treats Top Golf Torchy’s Tacos Total Hockey Total Lacrosse True Value Hardware Truluck’s Urban Brands Urban Eatz Urban Orchard Visionworks Wallbeds “n” More Which Wich Wild Salsa Woly Board Company Woodlands Grill World Market Zaxby’s Ziziki’s Taverna brokerage | advisory | investment | management DALLAS | FORT WORTH CORPORATE OFFICE 2525 McKinnon Street Ste. 700 Dallas, TX 75201 p 214.572.0777 f 214.572.0009 AUSTIN OFFICE HOUSTON OFFICE 221 W. 6th Street Ste. 1030 Austin, Texas 78701 p 512.485.0888 f 512.485.0890 10000 Memorial Drive Ste. 170 Houston, TX 77024 p 713.547.5555 f 713.547.5549 FOR QUESTIONS REGARDING THIS NEWSLETTER, PLEASE CONTACT LEISA BARGER | Senior Vice President | Marketing EMAIL: [email protected] www.theretailconnection.net 12 SAN ANTONIO OFFICE Union Square I 10101 Reunion Blvd Suite 160 San Antonio, TX 78216 p 210.408.6464 f 210.408.6465