Regional Retail For Michigan
New regional projects and interest from big boxes highlight activity in the state.
Randall Shearin

Michigan is seeing new regional retail roll its way with the development of three new large centers currently underway, and the redevelopment and expansion of one of the area’s strongest regional malls. Retail developers in the area report they are not feeling any hangover from the job losses caused by the auto industry’s woes in the state. In fact, several reported that the industry is robust in the state.

“The national retailers — anchor, mid-box and ancillary retail — continue to respond very positively to our Michigan centers,” says Dennis Gershenson, chairman, president and CEO of Farmington Hills-based Ramco-Gershenson Properties Trust.

William LaKritz, president of LaKritz-Weber & Company, also reports that activity among developers and retailers is active. His company is active in leasing projects for KIRCO and Gershenson Realty & Investment.

Regional Rally

Regional retail is making a huge push in the state. In October, Taubman Centers will open its new The Mall at Partridge Creek in Macomb County. Developers Diversified, Coventry Real Estate Advisors and The Harbor Companies are developing Bloomfield Park, a major mixed-use development in Bloomfield Hills. In Grand Rapids, CBL & Associates and Robert B. Aikens & Associates are developing The Village at Orchard Hills. And, in Novi, Taubman Centers is nearing completion on the redevelopment and expansion of Twelve Oaks Mall.

The 640,000-square-foot Mall at Partridge Creek is the first regional center to be built in Macomb County in more than 30 years. The center will have three anchors: Parisian and MJR Theaters will open with the center in October, while Nordstrom will follow in spring 2008. Other tenants at the open-air center include J.Crew, Apple, Lucky Brand Jeans, Banana Republic, H&M, Ann Taylor, Gap, Zales, Clarks, The Levi’s Store, Crabtree & Evelyn and Eddie Bauer. Restaurants at the center include PF Chang’s China Bistro, Bravo! Italian Cuisine, California Pizza Kitchen, Max & Erma’s and Claddagh Irish Pub.

The Village at Orchard Hills is a 400,000-square-foot open-air lifestyle center that CBL and Robert B. Aikens are developing with local partner BDR, Inc., in Grand Rapids. The center is scheduled to open in October 2008 and also has a residential condominium component.

CBL is active in Michigan with The Lakes Mall in Muskegon, Meridian Mall in Lansing, Midland Mall in Midland, Fashion Square in Saginaw, and Laurel Park Place in Livonia.

In Bloomfield Hills, the development of the mixed-use Bloomfield Park is on schedule for a 2009 opening. RKF Retail Property Advisors is leasing the 600,000-square-foot project for the developers. Recently announced tenants include Ann Taylor Loft, BCBG, H&M, Bar Louie, Banana Republic, Fox Sports Grill, Pac Sun, Blue Point Grill, Bebe, Lucky Brand Jeans, Sephora and Hyde Park Steakhouse. The center will also feature a health club and a movie theater. The center features modern architecture that will have a big city shopping district feel, according to the developers.

In Novi, Taubman is putting the final touches on the expansion of Twelve Oaks Mall, a property that the company originally developed and opened in 1977. The company is adding a 97,000-square-foot wing of shops and a 165,000-square-foot Nordstrom store to the center. The expansion and the Nordstrom will open in September. Macy’s is also adding 60,000 square feet to its store at the center. As a result of the new wing, many existing tenants will be moving and new tenants joining the center. Retailers joining the center include A/X Armani Exchange, Puma, Arden B, Lucky Brand Jeans, For Love 21, and the first store for Martin + Osa in Michigan.

In addition to these centers, Gershenson Realty & Investment and KIRCO have plans to develop a 350,000-square-foot lifestyle project, called The Gardens at Rochester Hills, in Rochester Hills.

Growth Means Expansion

In addition to regional centers, there is no slowdown in production of power and community centers in the state, either. Lormax Stern has several properties under development in the state, including Springfield Marketplace in Springfield Township. The 380,000-square-foot development will be department store anchored and have small shops space. Gershenson Realty & Investment and KIRCO launched plans to build four centers in the state. In addition to Rochester Hills [see above], other centers are planned for White Lake, Springfield Township and Grand Rapids. Westwood Development Group is developing Lakes Crossing, a 308,000-square-foot power center in Norton Shores that will be anchored by Kohl’s, Circuit City, Joann’s Fabrics, and Shoe Carnival.

Feeding the growth of new centers is the appetite of big boxes, who continue to find Michigan an attractive market. Target, Wal-Mart, Meijer, and Costco continue to locate stores in Michigan.

“We had hundreds of meetings with retailers ranging from shop retailers to mid-box retailers to anchors at ICSC, and there continues to be a vibrant interest in our portfolio in Michigan at all levels of tenancy,” says Thomas Litzler, executive vice president of development and new business initiatives for Ramco-Gershenson. As an example of leasing activity among big boxes in the state, Ramco-Gershenson acquired the 350,000-square-foot Hunter’s Square center in Farmington Hills in 2005. The company has replaced Eastern Mountain Sports with ULTA Cosmetics, and is in the process of expanding the TJ Maxx store to 32,000 square feet. A former 13,000-square-foot Pier 1 Imports freestanding location at the center has been reused as space for Potbelly Sandwich Works, Pei-Wei Asian Diner, a cell phone retailer and other tenants. The center is 100 percent leased.

LaKritz reports that demand for space by smaller tenants, especially new quick service restaurants, is high. He cites the examples of his clients Pei-Wei Asian Diner, who plans to open two units in Detroit this year and four more in 2008, and Jimmy John’s, who has 45 locations in the market and plans more than 20 units in Detroit in the future. His company is also representing Tim Hortons, the Canadian coffee chain looking for U.S. expansion, and L.A. Fitness, who is seeking sites in Detroit.

Ramco-Gershenson’s Tel Twelve center, which the company demalled in recent years and transformed into a power center, continues to be incredibly productive. The 670,000-square-foot project has only one 2,500-square-foot space open.

Robert B. Aikens & Associates continues to see activity at its Village at Rochester Hills in Rochester Hills, Michigan. New leases are in the works for the center, which is anchored by Parisian.

“Things in Michigan are holding up better than anyone expected,” says Jim Fielder, vice president of acquisitions and marketing for Robert B. Aikens & Associates. “April sales took a hit here as they did everywhere, but generally things have been stable. We’re cautiously optimistic.”

“The real tale is told when you see the number of retailers who are opening new stores in our market,” says Gershenson. “The willingness of national retailers, who must do significant research to validate they can do the sales, continue to take locations in Michigan.”


©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.