Shopping Center Business

SEP 2018

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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LBG REAL ESTATE September 2018 • SHOPPING CENTER BUSINESS • 79 ed by dance teacher and nearby Rogue Valley native Sydney Smedley. These busi- nesses have created a fitness and healthy lifestyle hub at Village Medford Center. In a sign of the times, two online-only companies have also chosen Village Med- ford for their inaugural brick-and-mortar locations. Fashion Institute of Design & Merchandising graduate Rocky Sharpe opened her first Simply Sharpe Boutique storefront selling high-end women's cloth- ing and accessories near the Tinseltown box office, while Ashley Lacer opened the complementary affordable women's clothing store Ella Lane Boutique across the way. As pure-play retail dies off and omni- channel continues to gain steam, David Goldman, managing partner at LBG, be- lieves we will continue to see new artisans move their operations from the web to a more balanced bricks-and-clicks strategy. "The marriage of e-tailing and brick and mortar is becoming commonplace and necessary for the success of both," he says. "This is all part of the evolution of retail." These types of tenants will be especially active, Goldman notes, in neighborhood centers within tightknit communities like Medford. "Both of these tenants were local res- idents who had strong online and local followings," he continues. "They believed that the next natural step in their growth was to create a physical presence, which can most efficiently be achieved through brick-and-mortar locations." CATERING TO THE MASSES Medford may have made it loud and clear that this community prefers local, but farther south, LBG is going global. The company purchased the flailing 77- acre Hilltop Mall just 20 miles northeast of San Francisco with its partner in July 2017. At the time, the 1.2-million-square- foot mall had been foreclosed upon, hav- ing experienced a barrage of distressed owners for at least five years prior to the sale. LBG's reimagined vision for the center was inspired, in part, by one very crucial fact. "We are proactively responding to not only significant overall population growth projected for the East Bay region in the years ahead, but also to cultural market- place shifts that are currently taking place in the Shops at Hilltop's core trade area," Lundin explains. "Currently estimated at 22 percent, dramatic growth among the region's Asian population is projected to increase over 10 percent by 2023." The Shops at Hilltop is situated within a residential trade area that boasts more than 1.2 million permanent residents in 483,000 households. The area is experi- encing significant population growth in general, but particularly among its Asian population. The influence and buying powers of this demographic shouldn't be underestimated, Lundin says, citing Nielsen Company's recent findings. These findings, released in a May 2018 report titled "Asian-Americans: Digital Lives and Growing Influence," note that Asian-American buying power increased by 257 percent from 2000 to 2017, ex- ceeding increases in buying power for all other racial and ethnic groups. The de- mographic's buying power currently sits at $986 billion and is projected to reach $1.3 trillion in 2022. The Asian-American population has also grown by 43 percent, at a faster pace than any other U.S. race or ethnicity. This is particularly pertinent in California, where Asian-American con- CLASSIFIED MALL COMPACTORS NO COST TO MALL DEVELOPERS FAIR SHARE DIRECT TENANT BILLING For Rubbish Removal A 20 year history of serving • • • • • • • • MALLS• • • • • • • • OLYMPIC MALL SERVICES A division of Olympic Compactor Rentals, Inc. Chip Panciocco 1-800-722-5371 PROFESSIONAL SERVICES ACCOUNTING, AUDITS Retail Tenant Sales • Compliance • Restaurant • Specialty Examinations United States • Canada • Caribbean Phone 985.626.9979 • 800.999.LAMY • Fax 985.626.9943 E-mail: kslamy@thelamygroup.com ARCHITECTURE/DESIGN For classified advertising information, please contact Barbara Sherer (404) 832-8262 bsherer@francemediainc.com

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