Shopping Center Business

MAY 2015

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

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310 • SHOPPING CENTER BUSINESS • MAY 2015 in the U.S. and around the world that will accept a different set of economics not purely based on four-wall profitability. We know there is a segment of the market that plays to that. SCB: Once a retailer wants to move to oth- er markets, what are the considerations? Spiegelman: At that point, they will have the business experience to under- stand where their customers are and what the logical business opportunities may be. But a lot of this happens opportunisti- cally. When they decide they are going to expand after they've built up their in- frastructure, they are going to look at the real estate. Whether it is high street driven or shopping center driven, where do the good opportunities exist? They may have a plan to open in this city first, this city second and this city third, but city number 3 might have an opportunity before city number 1. And that happens so often. It is a blend of art and science. To the extent that you use science, you must have quality data to work with. Many retailers turn to firms like Cushman & Wakefield to help them understand their data to engage in customer profile development, portfolio optimization, cannibalization studies and predictive modeling as critical components of the site selection process. If you don't have enough data, you are working off 'art and gut' and looking at solid retail locations and comp sales and how competitors trade and you use that intel in the decision-making process. SCB: Aside from high streets, are you seeing any other emerging areas that have become more prominent in the last five years? Spiegelman: I love Nashville. It is one of the most exciting cities in the United States. You can go down there — you can spend time in a honky-tonk or you can go visit The Mall at Green Hills or Hill Center and see the great and growing collection of quality retail offerings down there. There is a lot of affluence and sophistication. It is an exciting market. In Denver, you can go to Cherry Creek North and look what is going on in that neighborhood. It is really cool. You could go out to King Street in Charleston and see the emerging retail scene there. There are many quality shopping centers and lifestyle centers spread throughout the United States that take the place of high streets when traditional high streets don't exist. SCB: The one that surprised us most recently: San Jose, California. With the resurgence of the dot-com industry in Sili- con Valley, it has gone crazy there. Spiegelman: Yes, you have Valley Fair and Santana Row in San Jose. You go up north to Palo Alto, you have Stanford Shopping Center — a gorgeous center — but if you go throughout Sunnyvale, Mountain View and Cupertino, it is gen- erally underserved from a quality retail perspective because employment trends and housing demand are getting ahead of the market. The retail has not caught up throughout the broad geography. There is huge opportunity there. The big issue there is housing affordability. SCB: Do you see any underserved mar- kets, markets with pent-up demand? Spiegelman: I look at downtown Bos- ton and what Millennium Partners is doing with their Millennium Tower; 1.4 million square feet incorporated on the Keri Samford, Economic Development Director 972.624.3127 | | A RETAIL AND RESTAURANT DESTINATION Over 8 Million Visitors Projected Annually to Nebraska Furniture Mart/ Grandscape Development A GROWING RETAIL TRADE AREA POPULATION OF 146,692 Median Household Income of $94,474 Average Household Income of $122,343 AWARD-WINING QUALITY OF LIFE FOR RETAIL PRIME SPACE

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