RETAILREVIEW A PUblication of MID-AMErica® REal EstatE GroUP FALL 2013 Site Selection Strategies: Business as Usual? In the past five years, the real estate According to Mid-America Broker majority of existing A space leased, and market has been in recovery mode and (Mich.) Susan Acciaioli, “Co-tenancy there is opportunity for new ICSC Chicago it seems that things are almost back to clauses continue to be one of the construction,” he says. “Smaller retail where they were in 2008. But is biggest sticking points in negotiating a tenants are dictating the location of Deal Making everything the same? Have tenants deal. For national retailers, obtaining a these sites and will pay for a strong October 2 – 3, 2013 changed their criteria for the number of co-tenancy clause makes it easier to get location, especially if it out positions stores they plan to open? Do they look deals approved. But landlords deem their competitor. Larger developments Navy Pier 600 East Grand Avenue at sites differently now than pre-2008? them a liability.” She says that, “Typically are still on the horizon as they require a Chicago, IL 60611 Below are some insights from language can be negotiated to satisfy critical mass of retailers.” Stop by and visit us at the Mid-America’s tenant experts as to the retailer’s ‘worst case scenario,’ and Exit Strategy Mid-America Real Estate Group how the recovery has influenced the at the same time provide the landlord at Booth #911 or at the ChainLinks retail trades. with replacement tenant flexibility.” Although the market is steadily Booth #711. improving, it is still important to be “One fundamental that seems back in Location Scrutiny aware of possible changes in the future. vogue is that successful retail Illinois Office: development follows, not leads, In the still-changing economy, it’s more Mid-America Principal and Vice One Parkview Plaza, 9th Floor residential population and growth,” important than ever for brokers to be President Dan Tausk says, “Retailers Oakbrook Terrace, Illinois 60181 aware of potential pitfalls in helping need to be cognizant of an exit strategy 630.954.7300 says Jeff Kuchman, Mid-America Principal and Director of Tenant clients with site selection. Mid-America on each individual site more than ever Chicago Office: Brokerage. “Most retailers and projects Principal (Minn.) Mike Sims says, before. Kick out clauses have become a 435 N. Michigan Avenue, Ste 2009 that continue to struggle exist on the “Tenants who were active during the big issue for both tenants and landlords Chicago, Illinois 60611 630.954.7327 fringes, where stores jumped out in recession, albeit few, were fortunate trying to protect themselves from front of rooftops in an attempt to drive that there was not much competition. mistakes while giving each side some Wisconsin Office: growth plans.” Overall activity is improving now, but flexibility to move on.” 648 N. Plankinton Avenue, Ste 264 retailers are still very selective on Milwaukee, Wisconsin 53203 The retail real estate market will More Reserved Retailers locations. Retailers are scrutinizing 414.273.4600 inevitably continue to change, and site each and every site and deal.” With that in mind, the lessons of recent selection strategies will have to evolve Minnesota Office: 5353 Wayzata Boulevard, Ste 650 years are apparent in retailers’ decision Mid-America Principal (Mich.) Tony to keep up with those changes. Having Minneapolis, Minnesota 55416 making process as the market Schmitt says that when retailers are an experienced broker in your corner 952.563.6600 continues to gain momentum. One looking for a site, they must ask with the most comprehensive, current Michigan Office: example is concern about possible themselves if there are new market knowledge may be one of the 6230 Orchard Lake Road, Ste 230 turnover in a potential center. development options. “We’ve seen the best strategies of all. West Bloomfield, Michigan 48322 248.855.6800 www.midamericagrp.com Illinois Activity 2 Principal Richard Spinell reports the following new and renewal retail leases recently MAAMCO Leasing Activity completed by Mid-America Asset Management (MAAMCO) leasing representatives: SHOPPING CENTEr TENANTS TOTAL SQ. FTG. SHOPPING CENTEr TENANTS TOTAL SQ. FTG. 180 N. Jefferson Nail 2NE1, Subway 2,643 Ogden Mall Lotus Terrace 1,800 Chicago, IL Naperville, IL 1480 N. Orchard Road Illini Legal Services 1,120 Parker Square Full Steam Staffing 1,240 Aurora, IL Minook, IL Asbury Plaza Bed, Bath & Beyond, Dress Barn, Maurices, Petco 47,202 Parkview Plaza Fred Loya 940 Dubuque, IA Chicago, IL Aurora Marketplace DuPage Medical Group 4,200 Plaza del Prado McDonald’s, Zoup! 7,500 Aurora, IL Glenview, IL Bloomingdale Square Blooming Nails 2,656 Poplar Creek Crossing Dunkin Donuts, PJ’s Avon Beauty Center 3,628 Bloomingdale, IL Hoffman Estates, IL Brewster Creek Square Sherwin Williams 3,500 Prairie Ridge West Cheddar’s 2 acres Bartlett, IL Pleasant Prairie, IL Broadway at Surf Bed, Bath & Beyond, Sprint, TJ Maxx 71,850 The Quarry Bedding Experts, Cost Cutters 5,050 Chicago, IL Hodgkins, IL Broadview Village Square Vintage Cleaners 630 Randall Road-College Green Planet Fitness 20,924 Broadview, IL Elgin, IL Burr Ridge Village Center Red Mango 1,658 Rice Lake Square Pure Barre, Pinwheel Toys, Smile More Dental 6,560 Burr Ridge, IL Wheaton, IL California & Armitage Sally Beauty 1,475 River Forest Town Center LOFT, Tilly’s, Ulta 20,515 Chicago, IL River Forest, IL Carillon Court Stella’s 2,718 Scharrington Square Sally Beauty Supply 1,245 Romeoville, IL Schaumburg, IL Carillon Square Advocate Health Care, Athletico, Dickey’s BBQ Pit, Onomoli, Schaumburg Plaza JD Kids Ice Cream 900 Glenview, IL Prime Devices Corp. 16,515 Schaumburg, IL Church Street Plaza Pure Barre, Second Time Around 2,970 Shops at State Place European Wax Centers 1,778 Evanston, IL Chicago, IL Cicero Annex Sleepy’s 6,075 Southport Plaza Pier 1 Imports 9,981 Chicago, IL Kenosha, WI Clark-Wellington FedEx 5,006 Surrey Ridge Wasabi 1,750 Chicago, IL Arlington Heights, IL Crossroads at Briargate Molly’s Deli 1,546 Town Square Creative Touch Interiors, Lester Starr Jewelers 3,911 South Elgin, IL Schaumburg, IL Dempster Plaza Advocate Lutheran General 14,700 Village Crossing Radio Shack, Subway 3,712 Niles, IL Niles, IL Dorchester Commons Red Snapper 1,500 Village Square of Bradley Hair Works 800 Chicago, IL Bradley, IL Evanston Plaza DaVita, Papa Romeo’s Pizza, US Army & Marines 12,911 Village Square of Northbrook Verizon Wireless 2,464 Evanston, IL Northbrook, IL The Fresh Market Center Firehouse Subs, Great Clips 3,250 Webster Place Barnes & Noble, Pet Stuff 31,950 Glen Ellyn, IL Chicago, IL Fullerton Plaza Chase, Party City 15,800 Westmont Village Rusco Windows 1,808 Chicago, IL Westmont, IL Garden Market George’s Hair Design, Yumz Frozen Yogurt 3,477 Willard’s Corner Sears Appliance 5,000 Western Springs, IL North Aurora, IL Gateway Centre Dunkin Donuts, T-Mobile 4,204 Willow Creek Sleepy’s 6,507 Chicago, IL Glenview, IL Geneva Commons Aveda/Annabella Salon & Spa, The Children’s Place, Claddagh Irish Pub, Windsor Pointe Lavish Spa 1,395 Geneva, IL Destination Maternity, Express, Forever 21, Massage Envy, New York & Co., Kenosha, WI Sleep Number, Soma Intimates 54,522 The Mid-America Asset Management team can be reached at 630.954.7300. Glenbrook Marketplace EcoGym 8,700 Glenview, IL The Grove Pastabilities 1,600 Buffalo Grove, IL High Point Square Laredo’s Hospitality 1,750 Romeoville, IL MAAMCO News & Notables Hoffman Village Goodwill 20,630 Hoffman Estates, IL Kensington North Verizon Wireless 2,763 Michelle Panovich to Receive Lifetime Industry Plainfield, IL Leadership Award LaGrange Crossing Pure Barre 1,612 LaGrange, IL Mid-America is proud to announce that C. Michelle Panovich, MAAMCO Main Street Commons Embroid Me, World Market 19,675 Principal and Executive Vice President, will be honored with the Lifetime St. Charles, IL Market Meadows Heartland Blood Center, SAS Comfort Shoes 4,865 Industry Leadership Award at the 12th annual Real Estate Gala hosted Naperville, IL by the Marshall Bennett Institute of Real Estate at Roosevelt Marshfield Plaza Skechers 7,497 on November 7, 2013. Chicago, IL University McHenry Commons Family Video 4,200 Michelle has more than 30 years of experience McHenry, IL Midway Square Hanway Insurance 1,102 in real estate construction, development and Chicago, IL management. Among her many accomplishments, Milwaukee & Concord Presence Healthcare, UPS Store 4,627 Chicago, IL she has directed the redevelopment of The Streets Mount Prospect Plaza Famous Footwear 5,838 of Woodfield in Schaumburg and Brickyard Mt. Prospect, IL Mall in Chicago, and the retail revitalization of Naperville Crossings C2 Education, Nothing Bundt Cake 4,342 Naperville, IL downtown LaGrange and Park Ridge. North Lake Commons The UPS Store 1,411 Lake Zurich, IL According to Jon DeVries of Roosevelt University, Oakland Place Sears 9,290 “Michelle’s leadership and contributions to the Dekalb, IL profession, community and our school have been significant.” Report from Illinois Brokers 3 Principal Jeff Kuchman reports the following transactions recently handled by MAREC Activity Mid-America Real Estate Corporation (MAREC) brokers: PROJECT LEASING TENANT Representation LOCATION TENANT SQ. FTG. BROKER TENANT LOCATION BROKER Chicago: Aldi Big Rapids, MI; Galesburg, IL Mike Phillips, Andy Bulson 218 W. Washington Fifth Third Bank 980 Peter Scannell Associated Bank Sturgeon Bay, WI Peter Scannell 556 W. Diversey Aligned Modern Health 2,400 Matt Gould, Paul Bryant, Dan Tausk Aspen Dental Alton, IL; Glen Carbon, IL Willie Hoag 835 W. Wilson property sale .63 acre Andrew Becker Athletico Greenfield, WI; Orland Park, IL; Oswego, IL Peter Scannell 1560 N. Damon Stan’s Donuts 1,340 Paul Bryant, Dan Tausk, Andrew Becker Buffalo Wild Wings McHenry, IL Brian Adams, Steve Frishman 1832 N.