Favoring Flexibility
With its newest power center, Continental Retail Development is showing that it can adapt to what the community needs.

While no one in retail would be so naive as to adopt a “build it and they will come” philosophy any longer, there is a tendency for developers to work within their comfort zones, to only build platforms that they have had experience and prior success with. In doing so, it's clear that many potential opportunities are overlooked.

When completely built out, Continental Retail Development's Parkway Center will include more than 1.2 million square feet of big box retail.

“More than ever, outside influences beyond site demographics — tenants, consumers and communities — are playing a significant role in our development decision making process,” says David Kass, president of CRD. “This applies across the board, whether we are considering mixed-use projects, lifestyle centers, power centers or grocery-anchored community centers.”

These influences are not necessarily a bad thing, according to Kass. “When successfully and seamlessly coupled with a good site, it's a recipe for a home run.” Continental says that it strives to stay ahead of the curve in identifying and understanding these new rules of retail where a site must be treated like a living and breathing thing rather than a commodity. While the company is perhaps best known for its lifestyle developments, it continues to build all types of retail platforms that are “custom built,” not only for the sites, but for the communities they serve. In all, Continental Real Estate Companies has developed more than $2 billion of mixed-use retail, multifamily and office space throughout the United States during the past 15 years.

Big Box In All Its Glory

Continental Retail Development's Parkway Center in Grove City, Ohio.

“This is our largest big box development to date,” says Kass. “The project, which will be completed in phases includes three components and demonstrates our ability to capture the opportunities of a site, rather than follow a fixed strategy.”

The center is divided into three components. The first phase, Parkway South, was completed in fall 2004 and is 100 percent leased. This phase includes 400,000 square feet on 50 acres. Tenants include Wal-Mart Supercenter, T.J. Maxx, Bed Bath & Beyond, Staples and PetsMart. Parkway North, the second phase, includes another 400,000 square feet of power retail and is currently under construction. The Home Depot is already open. Other big box tenants will include Dick's Sporting Goods, Best Buy and Michaels. The project is slated for completion in summer 2006. Recently announced Parkway East will add another 400,000 square feet of big box retail to the development. Prospective tenants include Target, Kohl's, Sam's Club and Old Navy. Parkway East will open in spring 2007.

Parkway South, the first phase of Parkway Center, opened in fall 2004 and is anchored by Wal-Mart Super Center, T.J. Maxx, Bed Bath & Beyond, Staples and PetsMart.

“We are more opportunistic than we are strategic,” he says. “We don't have to identify a lifestyle site, mixed-use site, big box site or community site. We just have to find great sites.”

“We believe the market place favors developers who are flexible in their development strategies,” Kass concludes. “When we secure a site, we don't have to force a development on it. We have the ability to build the platform that fits best.”

— Randall Shearin