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Feature Article, May 2005
Right-Sizing Lifestyle
Continental Retail Development finds its sweet spot with smaller lifestyle centers.
Randall Shearin
In the middle of the lifestyle center development boom that is occurring across the nation, Continental Retail Development is focusing its energy on right-sizing its centers. The Columbus, Ohio-based firm is currently developing four lifestyle centers with an average size of about 150,000 square feet.
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The Streets of Chester will open in Chester, New Jersey, in summer 2006.
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“If you add up all of the specialty retail tenants that you would want in your lifestyle center you will have about 125,000 square feet. Add a few quality restaurants and you are at 150,000 square feet to 175,000 square feet,” notes David Kass, CEO of Continental Retail Development. “In some centers, we may include a movie theater, bookstore or department store, pushing the overall size of the project to 300,000 square feet or so. But, we aren't going to be developing many more 600,000-square-foot lifestyle centers in the future.” According to Kass, population growth and the continuing decline of malls are fueling lifestyle center development. “There are just 100 or so lifestyle centers already open across the nation, and that leaves a lot of room,” he says. “But forecasts that 30 lifestyle centers will be opened each year for the next several years is a little too aggressive.”
Kass says that it more realistic that around 20 lifestyle centers will come online per year.
“There is a limited and select group of tenants that fit the lifestyle platform and actually prefer these projects over other types of centers,” Kass says. Continental Retail Development and other lifestyle center developers count on that core group of specialty retailers including Ann Taylor, Talbot's, Gap, Chico's, Coldwater Creek and Williams-Sonoma. But, just a few years ago, teen oriented retailers like Abercrombie & Fitch and Pac Sun were included in that core group of retailers. That group has opted out of many new lifestyle locations in favor of more regional malls. Conversely, adult apparel retailers like Chico's, J.Jill and Talbot's, as well as many restaurants, prefer the lifestyle center format. In fact, the tenants that gravitate to lifestyle centers have become even more clique-ish than before, Kass says.
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The Streets of Cranberry in Pittsburgh will include 105,000 square feet of specialty retail and restaurants.
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That's why it's so important to Continental Retail Development that “lifestyle” retailers understand the company and are comfortable with its projects, Kass says, adding that lifestyle centers are less of a commodity than regional malls, power centers or grocery anchored centers.
“Retailers are very site driven when it comes to these types of projects and the developer who gets the best corner wins the best tenants,” he notes. “A comfort level is more meaningful in the lifestyle world, where retailers are actually driving some of these developments. In fact, it's not uncommon to see lifestyle tenants go to a developer they have worked with previously and ask them to pursue a specific market or site.”
In an effort to attract the right lifestyle tenants and build strong relationships with them, Continental Retail Development has branded its centers as “The Streets.”
“We felt that branding our projects would help the specialty retail community better understand our focus and commitment to developing quality lifestyle centers,” Kass says. “When a tenant sees ‘The Streets' we want them to think Continental.”
Lifestyle Pipeline
Continental Retail Development currently has five lifestyle centers under development:
• The Streets of Yorktown in Houston will include an 83,000-square-foot Rave Theater, a 25,000-square-foot bookstore and more than 142,000 square feet of specialty retail and restaurant space. The theater and some retail will open fall 2005, while the project is expected to be completed in summer 2006.
• The Streets of Albemarle is a 17-acre, 350,000-square-foot lifestyle center located in Charlottesville, Virginia. The project, which is scheduled to open in summer 2006, will include 182,000 square feet of specialty retail and restaurant space, a 60,000-square-foot theater and a 35,000-square-foot bookstore.
• The Streets of Cranberry in Pittsburgh will include 105,000 square feet of specialty retail and restaurants. Located on Rochester Road between Route 19 and Interstate 79, The Streets of Cranberry will open in summer 2006.
• The Streets of Chester will open in Chester, New Jersey, in summer 2006. This 105,000-square-foot lifestyle center will feature upscale specialty retailers and restaurants.
• This fall, Continental Retail Development will begin construction on the 500,000-square-foot The Streets of Indian Lake in Hendersonville, Tennessee. The project, which will include specialty retail, big box retail, restaurants and a 15- to 18-screen movie theater, will be a component of a mixed-use master plan currently under development by HALO. The project will open summer 2006. |
©2005 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.
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