Shopping Center Business

MAY 2015

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

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232 • SHOPPING CENTER BUSINESS • MAY 2015 35,000-square-foot center has a variety of shops and six ready-to-build pads total- ing just over 200,000-square-foot. In ad- dition, it was in the path of major growth for the area, given Tesla just announced the opening of a new factory nearby. As a result, the plant, along with the various related industries, and the number of jobs that will be created, will draw thousands of new residents to the region. The cen- ter is centrally located in the area, nearby residential sites and the new headquarters location. As a result, it offers substantial value add opportunity, though still a few years in the future. Strategy two: remember Shopping iS a Social experience Another strategy that can be imple- mented to drive traffic is to look beyond the traditional shopping experience and create an all-immersive environment that encourages opportunities for socializing. Consumers now look to shopping centers as destinations where they can connect with friends, family and even the com- munity without ever having to leave the parking lot. Positioning your center as a destination will not only drive traffic, but will increase the length of the shoppers stay which will then ultimately boost your bottom line. Purchased in 2014, Gilbert Town Square in Arizona is one such property where we're working to implement this strategy. The approximately 160,000-square-foot center experienced a significant drop in vacancy when the recession hit in 2007. Since purchasing, we have been utiliz- ing innovative methods to increase traf- fic to the center and reintroduce it to the community. We organized a weekly a farmers market, scheduled car shows, improved walkway and community light- ing, reinvested in the movie theater, and generally conducted research to deter- mine what the local market and customer was missing from a retail perspective and have begun to target those needs. We are now beginning to see the benefits of that strategy as prospective tenant interest has increased. Anchored by Regal Theaters and Brunswick Bowling Lanes, the center's prominent exposure along Gilbert Road has historically been a key to attracting national tenants and users such as Chi- potle, Sport Clips, Buffalo Wild Wings, and Pei Wei. Several residential develop- ments within walking distance to the cen- ter are also in the predevelopment stages, which, upon completion, will also become a major source of traffic and heightened awareness of the project. Altering different strategies might not eliminate people's desire to shop online instead of physically going to the store, but it will give the physical retail stores a stronger fair shot against such an al- ternative. Investors should take note of the retail market as a viable value- add investment option. Today, we are actively seeking retail centers given the looming up- swing in the market, and are on target to double our retail holdings over the next 18 months. It is our belief that while the current economic recovery has not impacted much of the B and C class retail locations, there is op- portunity for those with patience and patient capital. For those who know how to time the market, the time is now. SCB S teve Jaffe is the chief invest- ment o ffcer a nd principal at BH Properties, a Los Angeles- based commercial real estate investment company that ac- quires and maximizes the val- ue o f under-performing prop- erties located throughout the country. BH Properties acquired Los Altos Crossing in Sparks, Nevada, in 2014. The company sees secondary markets as ones where rents will improve in the long term. Your Hometown International Neighborhood T e City of Lauderhill is a vibrant community located in the center of South Florida. Our selection of unique shops, restaurants and businesses has a distinctive international f air and is a celebration of our cultural diversity. Conveniently located between three international airports, three international seaports and minutes away from the Florida Turnpike, Interstate 95 and the Sawgrass Expressway, Lauderhill is easily accessible for employees, customers and tourists visiting the Sunshine State. Let our team of professionals expedite your zoning and building permit approvals so you can establish, relocate and expand your business to the City of Lauderhill. Welcome to Lauderhill For more information on available locations and resources to assist your business contact our Economic Development Division at 954-730-3041 • ewooten@lauderhill-fl .gov Visit our website at www.lauderhill-fl .gov

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