Spring 2014 Retail Review Newsletter
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RETAILREVIEW A PUBLICATION OF MID-AMERICA® REAL ESTATE GROUP SPRING 2014 A 30 Year Success Story: Based on Three Key Principles Michael George, that we constantly strive to be the mation. This is a very important ICSC RECon best in each specialty. distinction. Whether our clients are President and Founding May 18 - 20, 2014 Principal developing, buying, selling or leas- Exceptional people ing real estate, it is our view that Stop by and visit us at the Mid-America has enjoyed extraor- we must provide them the most ChainLinks Booth dinary success for the past 30 Our people are the key to our suc- current, accurate and thorough South Hall, 2nd Floor, Q Street years. As a founding partner, my cess. For 30 years, we have made information. We are confident that Booth 266, Kiosk #2 hope is to perpetuate that success every effort to attract, develop and our clients can rely on us for the over the next 30 years. retain the finest specialists in each best information available, allowing Illinois Office: area. We expect them to excel. them to make the most informed Our business philosophy is consis- One Parkview Plaza, 9th Floor Beyond their own work, we expect decisions possible. tent and uncomplicated. We have Oakbrook Terrace, Illinois 60181 them to mentor others. In an indus- 630.954.7300 dedicated our work to three fun- try where inde- With our dedication damental principles: specialization, pendence can In an industry where to quality informa- Chicago Office: 435 N. Michigan Avenue, Ste 2009 exceptional people and a focus on be prominent, independence can tion, our continued information as our primary product. specialization in retail Chicago, Illinois 60611 teamwork is be prominent, teamwork 630.954.7327 everywhere at “ real estate and our is everywhere at Mid- Wisconsin Office: Specialization is our key Mid-America. unswerving commit- America. 648 N. Plankinton Avenue, Ste 264 to success As a testament ment to our people, we are confident that Mid-America Milwaukee, Wisconsin 53203 to our commitment to people, two 414.273.4600 Everyone at Mid-America is a founding partners in one office has will continue to set the standard Minnesota Office: specialist not only specializing grown to 200 people including 32 in retail real estate services for our 5353 Wayzata Boulevard, Ste 650 in retail real estate but a deeper partners in five companies in four clients for years to come. definition. Tenant representation, Minneapolis, Minnesota 55416 Midwestern states. 952.563.6600 investment sale, property manage- Thank you to our loyal ment and leasing, construction and Information is our clients for your business Michigan Office: 38500 Woodward Avenue, Ste 100 development services, financial business and friendship for 30 reporting and urban brokerage. We Bloomfield Hills, Michigan 48304 Retail real estate is our industry, years! 248.855.6800 are proud to be leaders in all these however, our product is infor- disciplines but it should be clear www.midamericagrp.com Mid-America Real Estate Corporation Chicago’s Michigan Avenue & Oak Street shopping district 3rd and 4th City of Chicago Leased more than 60+ units opening in 2014 1.25 MILLION transactions square feet completed 15 locations in Illinois 11 locations in Illinois 21 locations in Illinois Retail Market Still Reminiscent of 1984 Urban Retail Hotter Than Ever Mid-America Real Estate Corp. Principals Urban Team Principals In 1984, local and regional retailers from all Aldi, Heinen’s, Fresh Thyme, Fresh Market, Mid-America’s Urban Team in Chicago was formed in the over the country were seeking new areas and Plum Market are finding new homes mid-1990’s to combat the perception that the company to grow, having largely saturated their home in Chicago. Our home grown concepts, was solely focused on Suburban Chicago retail markets. turfs. Virtually every month saw the arrival of including Pete’s, Caputo’s, Tony’s and several Paul Bryant and Dan Tausk joined Stan Nitzberg at that a new chain store, and local shoppers were others continue to expand, even as Jewel time with a challenge to focus on both Landlord and exposed to retailers with whom they had little effectively retrenches. Tenant representation in the City’s complex 77 neighbor- or no prior knowledge. New concepts were hoods. While Mid-America had already achieved success developed at a prolific rate, and, much like One might conclude that with the emergence in the City’s higher profile districts such as Clybourn/ today, the nation was emerging from a pro- of so many quality grocers in Chicagoland Elston, Michigan Avenue, Roosevelt Road, and State longed economic recession. The cornfields that dining out at restaurants must have Street, it was the pioneering of expansion into submar- surrounding Chicago were quickly being somehow suffered. Evidence, however, kets such as Bucktown/Wicker Park and into the outer converted to shopping centers and a trend suggests just the opposite. Chicagoans neighborhoods where they’ve achieved dramatic impact. began that saw Greater Chicagoland add demonstrated, even throughout our recent an average of 5.5 million square feet of new recession, that they are unwilling to part with Now in a 10-person Urban Chicago office in the historic shopping center space per year for the next the experience and convenience of eating Tribune Building on the Mag Mile, the Team has evolved 25 years. out. New concepts and chains continue to into a well-rounded group of specialists covering all of the expand throughout the City and suburbs, City’s retail markets and districts via Developer and retail At that time grocery stores were the driv- with quick-serve and fast casual restaurants clients. ing force for retail growth, with Jewel and leading the charge. Chick-fil-A, Five Guys Dominick’s adding locations at a rate that and Jimmy Johns are just some of the scores Urban Chicago markets have always been historically would make life nearly impossible for any of concepts that are actively absorbing and strong, but especially emerging from this recession, other grocers to gain a competitive foot- creating space. urban retail is hotter than ever. From dramatic grocery hold. Restaurants were also proliferating, as expansion, to vertical power centers in Lincoln Park and It would certainly be nice to see a healthy Chicagoans, along with the rest of America, throughout the neighborhoods, to extreme growth in the discount and home improvement environment were beginning to spend money on conve- Gold Coast, Mid-America is involved and the near future emerge in the coming years, and watching nience and consumer confidence was rising. is bright. Many underserved pockets still exist in dense the struggles of several venerable chains in In some ways, today mirrors 1984. Grocery urban neighborhoods with attractive demographics. Our those sectors reminds us that not everything stores again lead the way with respect to food deserts still persist, but there is also a mid-box retail development activity, though now it’s several today is as it was 30 years prior. We haven’t supply/demand imbalance in many areas. While large extremely effective local chains that find them- seen 5.5 million square feet of new shopping land sites are always scarce, retailers in Chicago continue selves flourishing in the face of the declining center growth in the last four years combined. to get creative in layout and formats to simply penetrate dominance and market share from those However, limited growth and the back-filling and take advantage of sales volumes typically 20-40% early pioneers. All but two dozen of the 72 of failed concepts and boxes has produced above suburban stores. shuttered Dominick’s stores have found new near historic low vacancy rates, rents are rising substantially, and unlike an Orwellian users, and amazingly only two spots have Mid-America’s urban team will continue to grow as well, novel, cautious optimism has returned to the gone to non-grocers. Mariano’s continues to and be well positioned to help our clients capitalize on dominate the news, while other “out-of-town- retail community as we embark on our annual these opportunities. ers” including Whole Foods, Trader Joe’s, pilgrimage to RECON in Las Vegas. Mid-America Asset Management, Inc. Key Construction Management Projects The Brickyard Shops of Uptown Streets of Woodfield Chicago, Illinois Park Ridge, Illinois Schaumburg, Illinois Power Center Mixed Use Downtown Lifestyle 600,000 square feet 70,000 square feet 600,000 square feet The professionalism and 32 million Named “intelligence at Mid-America square feet is what makes us best. Great leased & managed working relationships and 3rd Largest caring employees is what 210 keeps us there. properties leased & Property Management Firm managed -Jennifer Lupie, Director in Chicago of Property Accounting Best Possible Retail Knowledge Mid-America Asset Management, Inc. Principals From 5 to 210... No, not the speed of a new high powered red sports car, an entire development or handle a redevelopment, or design and imple- but a measure of Mid-America Asset Management’s growth over the 24 ment the amenities. We understand meeting the goals of the client, as to years we have been a part of the Mid-America Real Estate Group. From timing and cost, whether that is the tenant or the shopping center owner. the humble five property start-up to the over 32 million square feet that makes up our 210 property portfolio, we have stayed the course of all Through all these fabulous years as part of Mid-America Real Estate Group, things retail. Market dominance in the service business is all about attract- MAAMCO has stayed true to our plan – specialize in retail real estate, ing and retaining the best people in each business unit.