RetAIl RevIeW Why Attending Industry Conferences Still Matters in a Mobile Digital Age

RetailReview
A publication of Mid-America ® Re al Estate Group
S PR IN G 2 0 1 3
Why Attending Industry Conferences
Still Matters in a Mobile Digital Age
These days, e-mail, phone/video
conferencing and digital webcasts make
it easy to learn about the latest trends in
the industry and stay in touch with clients
and prospects. Industry e-meetings are
becoming increasingly mobile.
Our smart phones and iPads can
stream media and data from anywhere
at the click of a button. We can send an
e-blast or post a blog to connect with
retailers, landlords and brokers.
Do all these channels and gadgets make
attending industry conferences obsolete?
Mid-America Pros Respond
“I think it’s still necessary to go to
industry conferences,” says MidAmerica Principal Rick Drogosz
(Investment Group). “They’re effective
platforms to connect with multiple
clients at the same time. We can’t
replace the face-to-face time that these
venues provide.” He adds that
they’re a great place to discuss deals,
though not necessarily to close deals.
VP of Leasing (Minn.) Jesseka
Doherty agrees with the idea of
keeping face-to-face meetings a high
priority. “You cannot read a person’s
face over the phone, and corresponding
through e-mail can be detrimental – the
sender can mean one thing and the
recipient can take it another way.
Meeting direct with a landlord and
tenant near the end of negotiating a
lease has proven very productive,
whereas the deal might have taken a lot
longer with the back-and-forth of
trading paper.”
•
Greater exchange of rewards, including
negotiation, favors, promises and
understanding, which “because of their
informal nature, are far less easily
achieved by electronic communication.”
Principal Dan Rosenfeld (Wisc.),
says that attending conferences is of
the utmost importance. “In our
industry,” he says, “it’s impossible to
maintain relationships without it – and
this industry is all about relationships.”
•
The relaxed conversation that gives way
to innovation, underscored recently by
Yahoo!’s companywide ban on
“remote working.”
According to Mid-America Principal
Michelle Panovich (Asset
Management), face-to-face
relationship-building opportunities are
not just important, “they are probably
more important today than ever before.
With the advent of digital messaging,
we are communicating more, but not in
a personal way. The best way to build
long lasting, respectful and enduring
relationships is on a personal level.”
understanding between individuals.
• Fulfillment of the primitive human need not
to be isolated from others in one’s group.
Top Industry Conferences
Michelle Panovich says industry
conferences allow people to get
together easily over a set period of time.
“This provides a time also to view new
products and innovation and get
feedback on them from peers,” she says.
For Mid-America, the most important
retail real estate events to attend are:
• ICSC Annual ReCon Global Retail
Real Estate Convention (Las Vegas)
• ICSC Chicago Deal Making
• ICSC New York Deal Making
The Psychological Need to Meet
•Urban Land Institute (ULI) events,
regional & national
In the March 2013 article “Your
presence is required: Why being there
matters” by organizational psychologist
Richard Avrey, face-to-face meetings
matter. They provide:
• ICSC Open Air Summit,
Washington D.C. – 2014
• The ability to catch verbal and non-verbal
nuances that are needed for greater
• ChainLinks conferences
• Wisconsin Retail Conference
See you at RECon 2013!
ICSC RECon 2013
May 19 – 22
Las Vegas
Convention Center
Stop by and visit us at the
ChainLinks Booth. Or plan ahead
and make an appointment now with
your Mid-America representative.
Booth Address:
South Hall, 2nd Floor, Q Street,
Booth S266 & S276, Kiosk #2
Illinois Office:
One Parkview Plaza, 9th Floor
Oakbrook Terrace, Illinois 60181
630.954.7300
Chicago Office:
435 N. Michigan Avenue, Ste 2009
Chicago, Illinois 60611
630.954.7327
Michigan Office:
6230 Orchard Lake Road, Ste 230
West Bloomfield, Michigan 48322
248.855.6800
Wisconsin Office:
648 N. Plankinton Avenue, Ste 264
Milwaukee, Wisconsin 53203
414.273.4600
Minnesota Office:
5353 Wayzata Boulevard, Ste 650
Minneapolis, Minnesota 55416
952.563.6600
www.midamericagrp.com
Illinois Activity
MAAMCO Leasing Activity
2
Principal Richard Spinell reports the following new and renewal retail leases recently
completed by Mid-America Asset Management (MAAMCO) leasing representatives:
Shopping CenterTenantsTotal Sq. Ftg.
Shopping CenterTenantsTotal Sq. Ftg.
600 N. Michigan Ave.
Chicago, IL
Grand Lux, Heaven on Seven
6,220
Randall Pointe
South Elgin, IL
Asbury Plaza
Dubuque, IL
Famous Footwear, Michaels
34,258
Aurora Marketplace
Aurora, IL
Floor & Décor, Guitar Center, Harbor Freight Tools, Winsmile Dental Specialties
77,988
Bloomingdale Auto Center
Bloomingdale, IL
DuPage Diagnostics
Borders Building
McHenry, IL
The Room Place
Broadway at Surf
Chicago, IL
Fantastic Sams, Leslie’s Pool Supplies, Stella’s
5,417
Regency Plaza
Certified Driving School, Elite Hair Salon, Hair Cuttery, Regency Shoe Repair
Palatine, IL
5,718
Rice Lake Square
Butterfield Pancake House
Wheaton, IL
5,900
River Forest Town Center
River Forest, IL
The Children’s Place
4,524
23,800
Scharrington Square
Schaumburg, IL
FedEx/Kinko’s, GNC, Yogurtland
4,704
Fitness 19, MedSpring
15,977
Shoppes at Windmill Place
Batavia, IL
S&C Cigarettes, Zano Salon
5,427
Burr Ridge Village Center
Burr Ridge, IL
Banana Republic, New York & Company, Soma
15,266
Shops at Heatherfield
Glenview, IL
Hair Cuttery, Muscle Maker Grill
3,014
Carillon Square
Glenview, IL
Becky & Me Toys, FUN Cards & Gifts, Impulse Clothing Boutique, Luxor Hair
The Shops at Oak Brook Place
Oak Brook, IL
Pier 1 Imports
12,996
Champaign Town Center
Champaign, IL
Ruler Foods
20,000
Shops at State Place
Chicago, IL
Formula Fitness Clubs
30,066
Colonial Plaza
Bloomington, IL
Ashley Furniture
31,573
Shops of Downtown Oak Park
Oak Park, IL
AT&T, Pier 1 Imports, TGI Friday’s
15,779
Crossroads of Highland Park
Highland Park, IL
Artist Frame Service, Hoffman Jewelers, Mizrahi Grill
6,673
Shops of Uptown
Park Ridge, IL
Belle + Beau, Menchie’s, Scottrade
7,017
Deerfield Village Center
Deerfield, IL
Garber Furs, Kidsnips, Orange Leaf, Seta Salon
7,617
Southport Plaza
Kenosha, WI
Tilted Kilt
7,540
Dempster Plaza
Niles, IL
Dance Time With Friends, Dollar Tree, First Merit Bank, Niles Buffet
21,512
Springhill Fashion Corner
West Dundee, IL
Catherines, Nail Care, Sally Beauty
6,600
Fullerton Plaza
Chicago, IL
Office Max
29,962
Washington Square
Bellwood, IL
Dunkin Donuts, McDonald’s
5,658
Garden Market
Western Springs, IL
Elements Therapeutic Massage, Subway
3,769
Westmont Village
Westmont, IL
Saffron Restaurant
5,250
Gateway Centre
Footlocker, Gamestop, Kenny the Kleener
Chicago, IL
7,870
Windsor Pointe
Kenosha, WI
Utopia Nails
2,632
Genesee Commons
Geneva, IL
Potbelly Sandwich Works
2,000
Village Square of Northbrook
Northbrook, IL
For Eyes Optical Company
1,424
Geneva Commons
Geneva, IL
Azar Jewelers, Bar Louie, Bath & Body Works, Chicago Locker Room by Lids,
Coach, Eye Boutique, Francesca’s Collections, Hallmark, Hollister Co., J.Jill,
L’Occitane, Rocky Mountain Chocolate Factory, Sprint, Starbucks, Stride Rite,
Things Remembered, T-Mobile, Victoria’s Secret, The Walking Company,
White House Black Market
54,875
Grenoble Square
Hazel Crest, IL
Enterprise, Nails #1
3,729
The Grove
Buffalo Grove, IL
Alice B, C2 Education, JP Morgan Chase
5,848
Hillcrest Shopping Center
Crest Hill, IL
Laredo Hospitality Ventures
2,552
Howard & Western
Chicago, IL
Dollar Tree
Indian Trail Plaza
Kenosha, WI
Cherry Berry
LaGrange Crossing
LaGrange, IL
AT&T, ATI Physical Therapy, Massage Envy, Orange Leaf Frozen Yogurt
Lincoln Crossing
Chicago Heights, IL
Subway
1,350
McHenry Commons
McHenry, IL
Family Video
4,200
Marley Creek Square
Orland Park, IL
Barraco’s Pizza
1,000
Mount Prospect Plaza
Mt. Prospect, IL
Army Navy Recruiting Office, Batteries Plus
6,000
Naperville Crossings
Naperville, IL
California Closets, Foxy Nails, Rocky Mountain Chocolate Factory, Taco Fresco, Title Boxing Club
12,842
Nelson Plaza
New Lenox, IL
Weight Watchers
North Lake Commons
Lake Zurich, IL
Bacchus Nibbles, Chiro One, CJ’s Quality Resale Shop, International Hair Design, Title Boxing
Ogden Mall
Naperville, IL
Cookies by Design, Park Jun Beauty Salon
3,710
Orland Park Center
Orland Park, IL
Orange Leaf Yogurt, Potbelly Sandwich Works
4,421
Park Place Plaza
Homewood, IL
Payless ShoeSource
2,608
Parkview Plaza
Chicago, IL
Mini Hut, Unique Thrift
Plaza del Prado
Jewel-Osco, Jia Foot Spa, Starbucks, Total Lacrosse
Glenview, IL
4,015
7,490
15,000
The Mid-America Asset Management team can be reached at 630.954.7300.
MAAMCO News & Notables
Mid-America Asset Management was ranked #6 in Crain’s Chicago’s
Largest Property Managers among all office, retail and industrial square
footage, and topped the list in firms that manage all retail.
2,000
New Development
12,792
2,000
14,613
14,760
66,671
Promenade of Bolingbrook North
Bolingbrook, IL
America’s Best Contacts & Eyeglasses
3,080
Pullman Shopping Center
Chicago, IL
Planet Fitness, Ross Dress For Less
45,000
The Quarry
Hodgkins, IL
Dress Barn, Lane Bryant
12,500
Raceway Park Shopping Center
Calumet City, IL
Blackhawk Restaurant
1,976
Our Construction Management and
Development Services team is now
working on the tenant coordination of
Pullman Park, a new development on the
northwest corner of 111th Street and I-94 in
Chicago. The Walmart-anchored retail center
is scheduled for delivery in Summer 2013.
Congratulations
Marget Graham, a member of MidAmerica Asset Management, Inc.’s leasing
team, was recently promoted from vice
president to principal. Marget joined
Mid-America as a leasing representative in
2000, working on behalf of various
institutionally-owned properties within the
City of Chicago and the greater Chicago
area. An active member of ICSC, including
the ICSC Next Generation and Women in
Retail Leasing (WIRL) Association, and a
spokeswoman for St. Jude Children’s
Research Hospital, Marget lives in Chicago
with her husband and three children.
Report from Illinois Brokers
MAREC Project Leasing Activity
Principal Jeff Kuchman reports the following transactions recently handled by
Mid-America Real Estate Corporation (MAREC) brokers:
Retail Leasing / Sales
LocationTenant
3
Tenant Representation
Sq Ftg
Broker
Chicago:
TenantLocationBroker
Aldi
Springfield, IL
Andy Bulson, Mike Philips
111 W. Illinois St.
Orange Leaf Yogurt
1,643
Paul Bryant, Dan Tausk, Andrew Becker
American Sales Corporation
Carol Stream, IL
Kevin McLoughlin
188 W. Randolph
Smith & Wells
8,450
Paul Bryant, Dan Tausk, Andrew Becker
216 W. Jackson
DelMonico
3,801
Matt Gould, Paul Bryant, Dan Tausk, Ben Wineman
Associated Bank
Loves Park, IL; Peoria, IL; Wausau, WI
Peter Scannell, Dan Tausk,
Stan Nitzberg
Athletico
Cary, IL
Peter Scannell
Bank of America
Hickory Hills, IL
Dan Tausk, Paul Bryant
Buffalo Wild Wings
Deer Park, IL
Steve Frishman, Brian Adams
Bonefish Grill
Orland Park, IL
Steve Frishman, Brian Adams
Chick-fil-A
Chicago, IL
Greg Bayer, Steve Frishman
Chipotle Grill
Crestwood, IL; Machesney Park, IL; Munster, IN; Oak Brook, IL; Plainfield, IL
Steve Frishman
Cooper’s Hawk
Orland Park, IL
Greg Bayer, Willie Hoag
Cycle Gear
Schaumburg, IL, Tinley Park, IL
Stephen Ansani, Jeff Kuchman
Famous Footwear
Kildeer, IL
Andy Bulson, Mike Philips
Fine’s
Libertyville, IL
Steve Frishman, Brian Adams
Five Guys
Joliet, IL
Steve Frishman, Brian Adams
Jason’s Deli Rockford, IL
Brian Adams, Willie Hoag
227 E. Ontario
CorePower Yoga
6,400
Paul Bryant, Dan Tausk
233 E. Erie
Dr. Azim
1,590
Andrew Becker
326 N. Michigan
NAF NAF Grill
1,927
Stan Nitzberg, Andrew Becker
444 N. Michigan
Ferragamo
2,971
Paul Bryant, Dan Tausk, Matt Gould
1050 W. Wilson
Cedar Street Capital
9,900
Peter Caruso, Dean Welch
1555 N. Sheffield
Nordstrom Rack
42,615
Paul Bryant, Dan Tausk, Greg Bayer, Jeff Kuchman,
Stan Nitzberg
1578 N. Kingsbury
Old Navy
Stan Nitzberg
1648 N. Milwaukee
Presence Healthcare Services
1832 N. Clybourn
Diversified Restaurant Holdings 9,462
Paul Bryant, Dan Tausk, Andrew Becker
2701 N. Elston
Forever Yogurt
1,279
Paul Bryant, Dan Tausk
3115 N. Broadway
Scott Overholser, DDS
1,890
Andrew Becker
3404 N. Southport
Efrom Worota
Ten Thousand Villages
3,100
1,700
Matt Gould
5300 Broadway
Sleepy’s
Pizza Hut 8,625
1,260
5501 S. Kedzie
LA Fitness
Elston & Logan
The Gateway West Loop
17,000
3,126
Matt Gould, Stan Nitzberg
Peter Caruso, Andrew Becker
LA Fitness (2 locations)
Chicago, IL
Paul Bryant, Dan Tausk,
Jeff Kuchman, Greg Bayer
Lowe’s
Fort Gratiot, MI
Jeff Kuchman
40,250
Dan Tausk, Paul Bryant
Massage Envy
LaGrange, IL
Peter Scannell
European Wax Center
1,125
Paul Bryant, Dan Tausk
Pet Supplies Plus
Portage, IN
Kevin McLoughlin
Petstuff
Red Mango
1,522
1,639
Paul Bryant, Dan Tausk, Carolyn Hronec
Pier 1 Imports
Chicago, IL; Oak Park, IL; Vernon Hills, IL
Andy Bulson, Mike Philips
Real Urban BBQ
Buffalo Grove, IL
Steve Frishman
Bradley, IL; Chicago, IL; Crestwood, IL; East Peoria, IL; Geneva, IL; Hillside, IL; Mishawaka, IN; Peoria, IL
Andy Bulson, Mike Philips,
Dan Tausk
Evanston, IL; Libertyville, IL
Andy Bulson, Mike Philips
Illinois & Beyond:
29 First Street
Hinsdale, IL
Maison Suzanne
3,400
Peter Caruso
Ross Dress For Less
143rd & Bell Road
Homer Glen, IL
Sherwin Williams
3,980
Peter Caruso
Trader Joe’s
536 Northwest Highway
Cary, IL
Jeff Vogt
6,500
Peter Caruso
Ulta Salon & Cosmetics
Chicago, IL
1001 E. 162nd Street South Holland, IL
Title Max
1,690
Peter Scannell
1460 Orchard Road
Aurora, IL
Supercuts
1,250
Steve Frishman, Brian Adams
1518 Market St.
Des Plaines, IL
Chiro One
Panera Bread
Potbelly Sandwich Works
2,050
4,014
1,958
Andrew Becker, Peter Caruso
1690 Douglas Road
Oswego, IL
The Popcorn Shop
1,000
Stephen Ansani
1820 Park Avenue
Muscatine, IA
Aldi
2040 York Road
Oak Brook, IL
Chipotle Grill
Roti Restaurants
2,300
2,316
Steve Frishman, Brian Adams
Crossroad Plaza
Matteson, IL
Verizon Wireless
2,458
Steve Frishman, Brian Adams
Merrillville Plaza
Hobart, IN
Art Van Furniture
50,000
Peter Caruso, Jeff Kuchman
River Place Center
Moline, Illinois
Hobby Lobby, PetSmart,
Ross Dress for Less
95,000
Mike Phillips, Andy Bulson
The Palozzo of Deer Park Buffalo Wild Wings
Deer Park, IL
12,500
5,700
The Shops at Fox River
Dr. Jabel Patel
1,760
McHenry, IL
Lane Bryant
4,500
Yogeeze1,500
Andy Bulson, Mike Philips
Steve Frishman, Brian Adams, Willie Hoag
Kevin McLoughlin, Peter Caruso
Paul Bryant, Dan Tausk,
Carolyn Hronec
For site and location criteria for these clients, please contact Mid-America Real Estate
Corporation at 630.954.7300.
Illinois Market Highlights
Chicago: Leading the Metro
Area’s Retail Recovery
by Jeff Kuchman
Year-end vacancy studies, buoyed by improving
consumer demand and several larger macro
market factors, reflect a trend toward modest,
steady improvements throughout Chicagoland,
especially within the City itself.
Three major factors are driving the trend upward
from the debacle of 2008 – 2009:
• A reduction in major store closing announcements in 2012;
• The continued pursuit of space by a number of active box players
in the region; and
• The historic lack of new shopping center space being created.
For the first time in several years, Chicagoland avoided a barrage of major
store closings. While Best Buy and Sears announced the closing of six and
four stores in the area, respectively, wholesale bankruptcies and departures
were scarce in 2012.
It seems unlikely, however, that this trend will continue, as additional
closings seem imminent. Along with Sears/Kmart and Best Buy, the region’s
two major grocery store players, Jewel and Dominick’s, continue to struggle
and are likely to shed units in the coming years.
…continued on page 8
Wisconsin Activity
Project Leasing Report
Principals Daniel J. Cohen and Daniel E. Rosenfeld report the following transactions
recently handled by the Mid-America Real Estate-Wisconsin team:
Project Leasing
Property/Location
Retailer
771 N. Water St.
Milwaukee, WI
Rodizio Grill
Sq. Ft.
7,000
Broker
Ryan Holzhauer, Dan Cohen
2280 E. Mason St.
Green Bay, WI
Spirit Halloween
8,000
Andrew Prater
2797 S. Kinnickinnic
Milwaukee, WI
Landmark Credit Union
2,859
Ryan Holzhauer
2901 Ramada Way
Ashwaubenon, WI
Orange Leaf
2,165
Teresa Shemitis
Brownstones Shopping Center
Brookfield, WI
Fannie May
1,690
Andrew Prater, Teresa Shemitis
Duck Creek
Howard, WI
TT Nails
1,200
Teresa Shemitis
Indian Trail
Kenosha, WI
Cherry Berry Yogurt Bar
2,000
Teresa Shemitis
Market Place at Pabst Farms
Oconomowoc, WI
Forward Dental
GNC
3,200
1,219
Teresa Shemitis, Ryan Holzhauer
Midtown Center
Milwaukee, WI
DaVita Dialysis Center
Ed’s Menswear
Hibachi Grill & Supreme Buffet
7,000
2,183
10,678
Teresa Shemitis, Andrew Prater
Moorland Commons
Great Clips
1,600
New Berlin, WI
Mi Cocina Mexican Restaurant
1,600
Subway1,600
Ryan Holzhauer
Oak Creek Commons
Oak Creek, WI
Tobacco Xpress
1,292
Andrew Prater
Oshkosh Center II
Oshkosh, WI
Weight Watchers
1,600
Teresa Shemitis
The Plaza
Brookfield, WI
Cell Phone Repair
Fava Tea
TITLE Boxing Club
2,003
1,265
6,752
Teresa Shemitis, Andrew Prater
Plaza 173
Brookfield, WI
Famous Footwear
16,183
Ryan Holzhauer
Shoppes at Prairie Ridge
Pleasant Prairie, WI
Urban Culture
1,593
Teresa Shemitis
The Shoppes at Wyndham Village Asian Garden
Franklin, WI
1,133
Teresa Shemitis, Ryan Holzhauer
Silvernail Commons
Pewaukee, WI
Papa Murphy’s Pizza
1,785
Andrew Prater
Southport Plaza
Kenosha, WI
Tilted Kilt Pub
7,540
Teresa Shemitis, Barb Kading
Whitnall Square
St. Francis, WI
Petco
Wyndham Village
Franklin, WI
Forward Dental
Glitz
11,285
Ryan Holzhauer, Dan Rosenfeld
5,900
1,552
Teresa Shemitis, Ryan Holzhauer
Tenant Representation
TenantLocationBroker
ATI Physical Therapy
Muskego, WI
Joe Kleiman, Dan Cohen
The Bay
Whitefish Bay, WI
Dan Cohen
Buffalo Wild Wings
Brookfield, WI; Fond du Lac, WI
Adam Dreier
Cherry Berry Yogurt Bar
Kenosha, WI; Madison, WI; Mequon Road, WI; Monona, WI; Sheboygan, WI; West Bend, WI;
Whitefish Bay, WI
Tony Colvin
Chipotle
Ashwaubenon, WI
Adam Dreier
Dick’s Sporting Goods
Wauwatosa, WI
Adam Dreier, Dan Cohen
Dollar General
Milwaukee, WI (3 locations); Racine, WI
Tony Colvin, Dan Cohen
Fannie May
Brookfield, WI; Glendale, WI; Greenfield, WI; New Berlin, WI
Joe Kleiman
Jimmy John’s
Wauwatosa, WI
Adam Dreier
Panera Bread
Wausau, WI
Joe Kleiman, Dan Cohen
PetSmart
Pewaukee, WI
Adam Dreier, Dan Cohen
PNC Bank
Milwaukee, WI
Adam Dreier, Dan Cohen
Starbucks
Milwaukee, WI; West Milwaukee, WI
Tony Colvin
TJ Maxx
Lake Geneva, WI
Tony Colvin, Dan Cohen
The Mid-America Real Estate - Wisconsin team can be reached at 414.273.4600.
4
In the Spotlight:
Drexel Town Square
Mid-America Real Estate-Wisconsin has been retained to handle retail
space leasing and outlot sales for Drexel Town Square, a new mixed-use
development in Oak Creek, Wisconsin. The project will be reminiscent of a
traditional downtown, including a Main Street – Oak Creek’s first – with a
new City Hall and Library on a town square surrounded by retail stores,
restaurants, shops, businesses and apartments.
Located at the southwest corner of South Howell Avenue and West Drexel
Avenue about ten miles south of downtown Milwaukee, the site is less than a
mile east of Interstate 94 with easy access via the new Drexel Avenue
interchange that opened in 2012. This new interchange is already
dramatically shifting traffic patterns within the general area, with traffic
counts in excess of 29,000 vehicles per day expected on Drexel Avenue.
The City of Oak Creek is one of the fastest growing cities in Milwaukee
County with a 20% population increase over a ten-year period. Residential
development has grown steadily, while the city still maintains a charming,
rural feel with lots of open spaces and undeveloped land.
Project Highlights:
•Retail
- A 192,000 sf Meijer store (general merchandise and full
service grocery)
-Meijer gas station
-Six retail outlot development sites ranging in size from
1.5-2 acres and featuring prominent local and national brand
restaurants and other unique freestanding retail.
-Approximately 90,000 square feet of street level retail space
along Main Street and overlooking Oak Creek’s new Town Square.
•Commercial
- Medical office building
- Full service health club
- Post secondary education facility
•Residential
- 400+ High-end apartments
-Assisted-living units
•Civic
-City Hall
-Public library
-Town Square
-Farmers’ market
Minnesota Activity
5
Activity
Minnesota Market Report
Principal Doug Sailor announces the following new and renewal retail leases
recently completed by Mid-America Real Estate-Minnesota project brokers:
Construction and Development Services Division
Gets a STARR
Project Leasing Report
Property/Location
Retailer
Apple Valley Retail Center
Sprint, Regis Hair Salon
Apple Valley, MN
Sq. Ft.
4,030
Bloomington Shoppes
Bloomington, MN
Blockbuster Video, Sawatee Restaurants, Smokeless Smoking
10,132
Brooklyn Park Auto Mall
Brooklyn Park, MN
Brooklyn Park BP
1,362
Burnsville Auto Mall
Burnsville, MN
Nth Moto
2,500
Cedar Grove Business Center
Eagan, MN
The Spot Hair Salon
Cliffview Plaza
Burnsville, MN
Nina’s Bar & Grill
879
3,994
Commerce Hill
Bruegger’s Bagels, Dental Practice
Woodbury, MN
3,853
Coon Rapids Auto Mall
McKay Collision, Sandy’s Auto Service
Coon Rapids, MN
9,500
Crossroads Center
Eden Prairie, MN
1,132
Venezuelan Arepa Restaurant
Crystal Gallery Mall
De Paris Nails, Great Clips
Crystal, MN
2,914
6,583
Within the last year, the Mid-America Construction and Development
Services Minnesota Division managed over 20 projects totaling more than
150,000 square feet.
One of these, a new Whole Foods development at Centennial Shopping
Center in Edina, Minn., won the prestigious Minnesota Shopping
Center Association STARR Award for Design and Aesthetics in its
category. Mid-America handled all aspects of the two-year project,
including everything from selection of architect, civil engineer and general
contractor to management and oversight of all aspects of the project.
HomeGoods enlisted the Construction and Development Services team
for the demolition of a 35,000 square-foot former Ultimate Electronics store
and a turnkey buildout to the tenant’s specs, including a complete façade
remodel. The new store, also located at Centennial Shopping Center in
Edina, opened in March 2013.
When Thunderbird Aviation wanted to add a new 8,000 square-foot customer
Flight Base Operation (FBO) to their Flying Cloud, Eden Prairie location, they
hired Mid-America to oversee construction and interface with multiple
government authorities, including the FAA, Metropolitan Airport Commission,
Hennepin County and the City of Eden Prairie. The project included the
relocation of a 12” water main and delicate work around an 18” gas main.
Eagan Auto Mall
Eagan, MN
Excel Auto, Super America
Eagan Promenade
Eagan, MN
Old Navy, Papa John’s
17,200
Eagan Town Centre
Eagan, MN
Dollar Tree, Persis Indian Grill
13,568
Eden Prairie Center
Eden Prairie, MN
Caribou Coffee
1,653
Foxridge Shoppes
Eagan, MN
Almax Auto, Waters of the World
3,450
Other projects recently completed by the Construction and Development
Services team include:
Hopkins Auto Mall
Hopkins, MN
Budget Rent-A-Car, Harmon Glass, In Line X Automotive, Smith Nielsen
8,800
• A 1,700 square-foot freestanding Starbucks with drive-thru in Edina, MN.
Hudson Marketplace
Hudson, WI
Papa Murphy’s, River Insurance, Sprint
4,209
•Three Advance Auto Parts locations.
Midway Corners
St. Paul, MN
Pro-Cuts
1,125
Normandale Village
Bloomington, MN
Mathnasium
1,215
• The 3100 Building in Minneapolis with 4,400 square feet of retail,
including My Burger, Yogurt Lab and Sport Clips.
Northern Commons
Woodbury, MN
Batteries Plus
2,000
Northwood Court
Eagan, MN
Sprint
2,440
• Landlord buildout management of Sport Clips, Pilates, Subway,
Sally Beauty, Jason’s Deli, National Karate, Edina Spa and
Salon, Five Guys Burgers, European Wax and Pro-Cuts.
NWC Commerce and Shoreline
Minnetonka, MN
Westonka Animal Clinic
4,000
For more information, contact Bruce Carlson, Project Director at 952.563.6674.
Peony Promenade
Plymouth, MN
PCE Academy
5,824
The Promenade of Wayzata
Wayzata, MN
Sotheby’s Realty
4,215
Rice and 36th
Maplewood, MN
Victory Auto
4,867
Richfield Shoppes
Richfield, MN
H&R Block, Lauro Gil & Associates, Murdoch Dental, V Spa Nails
5,764
Rosemount Crossing
Rosemount, MN
Clear Light Yoga and Enrichment, Nails Design
4,386
Rosemount Market Square
Rosemount, MN
Edward Jones
1,280
Shingle Creek Crossing
Brooklyn Center, MN
LA Fitness, LV Nails, Pro-Cuts, Sprint, T-Mobile
Shops at Riverdale Commons I
Coon Rapids, MN
Papa Murphy’s, Sport Clips
43,493
Principal Mike Sims announces the following transactions recently handled by
Mid-America Real Estate-Minnesota Tenant Representation brokers:
3,142
Tenant Representation
Shorewood Village Shopping Center National Karate, Shorewood Liquor
Shorewood, MN
7,198
TenantLocationBroker
Southcross Shoppes
Savage, MN
The Gentle Doctor Vet, Katie Nails
3,963
Spring Lake Park Auto Mall
Spring Lake, MN
BLT Services
1,965
Tamarack Village
Woodbury, MN
Best Buy, European Wax Center, Torrid
8,681
Tonka Village Shopping Center
Tonka Bay, MN
Koko Fit Club
1,823
Westview Shopping Center
Hastings, MN
Nu-Wave Tanning, Smart Ride
1,304
Woodbury City Center
Woodbury, MN
Kosama, The Mutual Fund Store
5,905
Woodbury Tamarack
Woodbury, MN
Verizon Wireless
3,500
Woodbury Village
Woodbury, MN
Jersey Mike’s, Kay Jewelers
4,228
AT&T
Hibbing, MN; Shakopee, MN
Baldy’s BBQ
Farmington, MN
Buffalo Wild Wings
Blaine, MN; St. Paul, MN
Ceil Home
St. Louis Park, MN
Cherry Berry
Blaine, MN; Forest Lake, MN; Red Wing, MN; Rogers, MN; St. Peter, MN
Gent Cuts
Minneapolis, MN
Gigi’s Cupcakes
Golden Valley, MN
9Round Kickboxing
Eden Prairie, MN
Office Max
Blaine, MN; St. Louis Park, MN
Old Navy
Eagan, MN
Pro-Cuts
Brooklyn Center, MN; Roseville, MN; St. Paul, MN
TJMaxx
Coon Rapids, MN
Patrick Daly, Mike Sims
Patrick Daly
Johnny Reimann,
Stefanie Meyer
Patrick Daly
Patrick Daly
Patrick Daly,
Carrie Charleston
Patrick Daly
Stefanie Meyer,
Johnny Reimann
Stefanie Meyer,
Johnny Reimann
Stefanie Meyer,
Johnny Reimann
Stefanie Meyer,
Johnny Reimann
Stefanie Meyer,
Johnny Reimann
The Mid-America Real Estate - Minnesota team can be reached at 952.563.6600.
Michigan Activity
6
Michigan Market Highlights
Project Leasing Activity
Retail on the Rise
Principals Brad Rosenberg & Gabe Schuchman report the following
transactions recently handled by the Mid-America Real Estate-Michigan team:
Throughout Metro-Detroit, signs of an economic recovery are obvious.
Vacant boxes are being filled by retailers expanding their existing presence
in the market as well as new retailers entering Southeastern Michigan and
throughout the state. There is also new construction activity, predominantly
with investors purchasing existing buildings and redeveloping for the
specific needs of pre-determined tenants. Rents, especially for small retail
outlot space, are increasing to near pre-recession levels.
project leasing
Property/Location
Retailer/Seller
9850 Telegraph
Taylor, MI
Salvation Army
9870 Telegraph
Taylor, MI
Oakwood Healthcare, Inc.
Local Retail Activity
Big Beaver and I-75 (Land Sale)
Troy, MI
Galleria of Troy LLC
There has been strong activity by retailers expanding their presence in the
market. LA Fitness is under construction in Troy and Sterling Heights.
Jo-Ann Stores opened in Lansing and Sault Ste Marie, and continues its
expansion and relocation plans throughout the state in markets such as
Battle Creek and Grandville. Ollie’s Bargain Outlet opens in Farmington
and Westland this spring with several other locations currently in various
stages of negotiation.
Bingham Office Park
Bingham Farms, MI
Noodles & Co.
Retailers such as HomeGoods, Michaels, Marshalls and Dunham’s
have backfilled large boxes left vacant by Kmart, Farmer Jack and Circuit
City. ULTA continues its rapid expansion throughout Michigan and is now
entering smaller markets such as Jackson and Norton Shores. Cabela’s
opened in Grandville, and Cabela’s Outpost opened in Saginaw,
backfilling the former Media Play and making this the third store in the
state. Dick’s Sporting Goods continues to be active in metro Detroit.
Total Hockey is under construction with its first two stores in the
market in Troy and Novi.
Trader Joe’s just opened a store in Bloomfield Township, and
Whole Foods is scheduled to open its first store in downtown
Detroit in June, spurring national retail activity in the city.
Development Activity
The land is cleared and development is underway at 7 Mile & Haggerty, the
site of Schostak Brothers & Company new 500,000 square-foot
Northville Park Place mixed-use development. The site will be home
to a 100,000 square-foot University of Michigan Health Systems
facility, as well as a number of national retailers and restaurants
actively in negotiation.
Meijer is vertical in its construction at Gateway Marketplace
on Woodward Avenue in Detroit.
Size
Broker
30,162 sf
Adam Goodman, Susan Acciaioli
4,400 sf
Susan Acciaioli, Adam Goodman
5.9 acres
Adam Goodman, Tony Schmitt
2,700 sf
Adam Goodman, Tony Schmitt
City Center Plaza
Sunny Nail
3,000 sf
Westland, MI
Gabe Schuchman, Daniel Stern
Fairplain Plaza
Five Below
8,000 sf
Benton Harbor, MI
Papa Murphy’s
1,600 sf
Ulta Salon, Cosmetics & Fragrance 11,000 sf
Daniel Stern, Brad Rosenberg
Daniel Stern, Brad Rosenberg,
C.C. Roberts
Daniel Stern, Brad Rosenberg,
C.C. Roberts
Kercheval Place
Grosse Pointe, MI
Great Clips
Susan Acciaioli
Pirates Plaza
Flint, MI
Christmas Tree Shops
Riverbend Plaza
Detroit, MI
Artistic Salon
Walmart Outlot (Sale)
Greenville, MI
Michigan One
2.23 acres
Community Credit Union
Cynthia J. Kratchman,
Brad Rosenberg
West Grange Plaza
Trenton, MI
Comic City
Gabe Schuchman, Karen Mullane
West Valley
Saginaw, MI
DSW
1,400 sf
28,000 sf
1,280 sf
2,014 sf
18,000 sf
Brad Rosenberg, Susan Acciaioli
Adam Goodman, Gabe Schuchman
Daniel Stern
Tenant Representation
TenantLocationBroker
6 Salon
Birmingham, MI
Tony Schmitt, Karen Mullane
Achatz Pie Company
Oxford, MI
Adam Goodman, Gabe Schuchman
AT&T
Ann Arbor, MI
Tony Schmitt, Gabe Schuchman
Carter’s
Novi, MI
Brad Rosenberg
Dollar Tree
Canton, MI
Jack Uhazie
Guitar Center
Lansing, MI
Jack Uhazie
Insomnia Cookies
Kalamazoo, MI; Ypsilanti, MI
C.C. Roberts, Brad Rosenberg,
Adam Goodman
LA Fitness
Woodhaven, MI
Tony Schmitt
Jo-Ann Stores
Grandville, MI; Roseville, MI; Sault Ste Marie, MI
Jack Uhazie, Susan Acciaioli,
Gabe Schuchman
LA Fitness
Sterling Heights, MI
Tony Schmitt, William LaKritz
Nordstrom Rack
Ann Arbor, MI; Auburn Hills, MI
Jack Uhazie, Tony Schmitt
Ollie’s Bargain Outlet
Farmington, MI; Lansing, MI
Susan Acciaioli, Tony Schmitt,
Jack Uhazie
Party City
Saginaw, MI
Adam Goodman, Brad Rosenberg,
Tony Schmitt
Pier One Imports
Ann Arbor, MI
Brad Rosenberg
Vitamin Shoppe
Northville, MI
Jack Uhazie
The Mid-America Real Estate - Michigan team can be reached at 248.855.6800.
Investment Group Sales
Urban Retail – What goes up…
by Joe Girardi
7
Recent Activity
The following list highlights recent sales transactions
by the Mid-America Investment Sales Group:
…Must keep going up! At least, that is the perspective many buyers have on
urban retail rents and their corresponding property prices. The investment
market for urban retail is extremely competitive right now and cap rates
starting with a “4” are the new norm for high-street retail properties on
Michigan Avenue. The cap rates get a little less heady as you get into the
next tier of Chicago’s urban retail markets (State Street, Oak & Rush Street,
and Lincoln Park), but these areas still feature pricing that is more
aggressive than even the best suburban grocery-anchored shopping
centers with cap rates hovering between 5%-6%.
Manchester Highlands
Manchester, MO
353,700
Burbank Station
Burbank, IL
303,566
Cambridge Crossings
Troy, MI
238,963
Van Dorn Plaza
Lincoln, NE
168,888
The E-Retail Effect
Hillside Town Center
Hillside, IL
164,923
The investment thesis is that rent growth in these urban retail corridors will
continue to far outpace suburban retail property rent growth. As retailers
look to make sense of a new generation of Internet-savvy consumers and
the effects of e-retailing, they are increasingly willing to pay up for top
locations in urban settings such as Michigan Avenue, Oak & Rush Streets,
State Street, and the North/Clybourn Corridor in Lincoln Park.
Lincoln Crossing
Chicago Heights, IL
101,498
The lack of true supply in these markets assures landlords that they won’t
have to compete with new development – there are only so many streetlevel “hard” corner retail spaces on Michigan Avenue between the Chicago
River and Lake Shore Drive. Retailers view these urban stores as a strong
complement to their Internet business and are much less concerned about
achieving typical health ratio thresholds than they would be in a normal
suburban location. However, it should be noted that the sales productivity in
these urban locations are traditionally among the best for most of these
retailers’ respective chains. As a result, urban landlords with “A” locations
should be able to push rents at an aggressive pace as retailer demand
outstrips available space supply.
Who’s Buying?
The buyers for these trophy urban properties include institutional investors,
public REIT’s, high net-worth private investors, and international buyers.
Many of these buyers are stymied by the lack of quality product available on
the market, combined with a need/want to invest capital that is burning a
hole in their pocket earning very little in today’s low yield environment. Also,
Chicago is relatively “cheap” compared to urban retail cap rates in New York
City (3% cap rates for top tier locations) and other international gateway
cities like London, Paris, and Hong Kong where the ability to buy is limited
no matter what price a buyer is willing to pay.
Traditional institutional buyers are typically looking to achieve 10-year
un-leveraged IRR’s of over 7% on grocery-anchored shopping centers or
top-tier power centers. Their yield requirements for high-street urban retail
are now closer to 6% for 10-year un-leveraged IRR’s. Only time will tell how
these current investments work out for those lucky enough to land a big
deal in a core urban market, but the mood is certainly optimistic.
PropertyLocation
Sq. Ft.
Five Points Mall
Marion, IN
460,849
West Valley/East Valley Shopping Center
Saginaw, MI
409,000
Shoppes at Northwoods
Vandalia, OH
LaGrange Crossing
LaGrange, IL
67,769
Midway Square
Chicago, IL
55,574
LA Fitness
Plainfield, IL
43,227
PetSmart/Dollar Tree
Decatur, IL
30,087
Goodwill
Sheboygan, WI
20,035
Lyon Town Square
South Lyon, MI
19,707
Jacksonville Retail Center
Jacksonville, IL
17,405
JoAnn Fabrics
Shakopee, MN
17,078
Walgreens
Akron, OH
15,120
Walgreens
Spring Grove, IL
13,548
GSA
Davenport, IA
11,877
Quarry Outlot
Hodgkins, IL
9,650
Dollar General
Milwaukee, WI
8,719
Firestone
Wauwatosa, WI
7,658
Advance Auto
Lake Geneva, IL
6,895
Burger King
Crest Hill, IL
5,000
Mattress Firm
Columbus, IN
4,446
Fifth Third Bank
Matteson, IL
4,200
Sherwin Williams
Hartford, WI
4,020
AT&T
Hibbing, MN
3,000
TOTAL
The Mid-America Investment Sales Group can be reached at 630.954.7300.
89,903
2,656,305
8
On the Corner
by Stefanie Meyer, Senior vice president and principal,
Mid-America Real Estate-Minnesota
A Bright Outlook for Twin Cities Retail
The economic recovery continues to gain strength in the Twin Cities, most
notably in certain segments of the local retail market. Well-positioned locations in
regional trade areas such as Rosedale, Ridgedale and Southdale, in fact,
have come back so strongly that available space is hard to find.
Who’s Expanding
We’re seeing healthy retail expansion in this market, especially in the value retail
and quick-service restaurant categories. T.J.Maxx, Michaels, Ulta,
PetSmart and others are active, as are local urban restaurants, salons, fitness,
dental, mattress stores, etc. Banks are loosening up on lending, so more
franchisees and local entrepreneurs are opening stores. And as we continue to
level off in the climb out of the recession, we’re going to see additional new
retailers entering the Twin Cities.
New Development
• Eagan Outlet Center being
developed by Paragon, with construction
slated to begin in May 2013;
• Small multitenant strip centers at
well-located intersections
Rising Consumer Confidence
A key factor impacting retail success is
consumer confidence. With residential
values on the rise and disposable income
increasing, consumers are spending more
and retailers in turn are expanding into
additional locations.
In the last two years, Mid-America Real Estate-Minnesota has gone from 1.3
million square feet of leased and managed properties to almost 5.9 million square
feet and from 14 full-time employees to 30 today. We feel very fortunate to be a
part of the many new retail opportunities happening in the Twin Cities.
Cautious Optimism
• The redevelopment of Brookdale Mall-Shingle Creek Crossing,
a Walmart anchored community center that is being leased by
Mid-America Real Estate-Minnesota;
Although the retail outlook is optimistic, we won’t be experiencing another boom
like that of 2007 anytime soon. When you get down to the bricks and mortar of it,
retailers need to be cautious in their expansion plans. The Internet has made
shopping easier than ever, so retailers need to provide something that shoppers
can’t find online, such as customer service and product availability. To gain
shopper loyalty, give them a dependable, rewarding experience.
• The Promenade of Wayzata, a mixed-use development with 130,000 sf
retail, a 100-room hotel, 30,000 sf of office space and 500 residential units,
also being leased by our Minnesota team;
At Mid-America we’ve been working harder than ever before to help our retailer
and landlord clients evaluate all aspects of their businesses in order to make the
best real estate decisions possible for their future plans.
Retail development activity is on the rise in the Minneapolis trade area, including:
• Whole Foods in downtown Minneapolis, and Lund’s in downtown St. Paul;
Illinois Market Highlights
…continued from page 3
The office and furniture sectors keep everyone guessing, with apparel and
specialty retailers hit or miss, sadly reflected by the closing of one of Chicago’s
oldest brands, 83-year-old Mark Shale.
Grocery is Golden
The good news for landlords and consumers is that almost as soon as one
retailer vacates, another snaps up the old unit. No demand segment is hotter
right now than the grocery business, as locals, regional players and some
nationals pick up steam and view Chicago as fertile ground, attempting to grab
market share away from SuperValu and Safeway.
Caputo’s, Market Fresh, Pete’s, Tony’s and Standard Market are just some of the
local players that have responded to opportunities presented in the grocery
segment.
Nearby regional players include Heinen’s out of Cleveland, opening in downtown
Barrington and rumored to have another site under control, and Plum Market out
of Detroit planning to open in the City in the Old Town neighborhood.
No one, however, is as active as Mariano’s. Working out of its Milwaukee
headquarters, the Roundy’s concept has everyone in the market excited with its
growth potential in both the City and suburbs under CEO Robert Mariano, former
president of Dominick’s. They should continue to open at a 4-6 store clip in 2013.
While rumors continue about other organic and high-end players heading to
Chicago, Whole Foods remains the local standard and will open new stores in
Kildeer and Park Ridge in 2013, with Des Plaines soon to follow.
Walmart continues to open several Neighborhood Market concepts in the City,
though that rollout continues to move more slowly than anticipated, with Aldi still
dominating that small store, no-frills market segment.
Box Players
Ross and H.H. Gregg were the most noteworthy mid-size box players in 2012, and
Ross’s steady appetite for new stores in 2013 is helping to drive other apparel and
junior department store activity, including TJX and Nordstrom Rack. Health clubs,
including LA Fitness and XSport, and buttressed by Blast and several others, continue
to gobble up box space in the market, a trend expected to continue throughout 2013.
Continued Stabilization and Some New Development
Combine increased demand and leasing activity with little or no shopping center
construction and what results is fewer vacancies and rising rents. Several
retailers have taken advantage of recent market conditions by improving their
lease rates over the past several years. 2013 will see the continued stabilization
and improvement of lease rates in all but the most outlying of regions.
The average 5.5 million square feet of shopping center growth per year that Metro
Chicago saw for decades came to a halt in 2009 and continues as a trickle today.
Bright spots and exceptions include: the anticipated construction of Structured
Development/John Bucksbaum/JP Morgan’s “New City” development in Lincoln
Park featuring a new Mariano’s and ArcLight Theatre, which was delayed several
years by the recession; The Bond Company’s “The Maxwell” in the South Loop,
which will house Nordstrom Rack, Dick’s Sporting Goods, and Burlington Coat
Factory. Also in the South Loop, McCaffery Interests will finally grand open the
“Roosevelt Collection,” a project begun in the mid 2000’s by Centrum Properties.
Perhaps no other individual retailer was more active in the City last year than
Target, who commenced construction of their new Lincoln Park site and also
opened new stores on State Street and the West Loop.
New project development outside of the City of Chicago is few and far between,
with growth primarily by free-standing big box development that creates little or
no small shop space.
As a result, look for rents and vacancy rates to continue their path up and down,
respectively, in 2013.