How to Succeed In Retail Without Lifting a Shovel

For Philly's retail developers and owners, it's about mixing it all up.(Kind of like a really busy salad or a nice word jumble.)
That's the word from our esteemed panel at last week's BisnowPhiladelphia Retail Real Estate Summit (see our previous coverage), where Federated Realty Trust COO John Hendrickson(left) says his firm is developing $500M in new mixed-use projects in the Northeast, including in Boston and Rockville, MD. But John and others say most of these projects are simply modifying and redeveloping existing centers.
Brixmor Property Group SVP Dave Vender (right, unperturbed by that floating hand) says 20% of his portfolio is under redevelopment or repositioning to add value. For instance, Brixmor just combined a cluster of small retailer spaces to bring in a 30k SF Ross Dress For Less at Roosevelt Mall. Dave also says that medical uses at retail centers “is very hot for us."
A&E Construction Co prez Tony Santora says his firm has been helping more and more developers rework centers to fit today's retail realities. “It's not about taking the raw piece of land and putting a shopping center anymore in our business. It's about redoing what's existing and adding value,” he says. But there are tenants looking to expand, including discount grocer Bottom Dollar. A&E is working on four area stores for the grocer and there are another two planned this year, Tony says.
Regency Center's John Hricko (right) also named Petco and discounter Five Below as hot retailers wanting to expand. In fact, he says, Five Below may do 60 stores this year. But Dave cautioned that the demand from retailers—particularly those who want to enter the Philly MSA—is limited. (They also better know the proper way to order at Pat's: "Whiz, Wit.") “We're not seeing enough retailers from other regions... banging our door down to come into this market,” Dave says. “Certainly Bottom Dollar's out there… but we're searching for more. It's been a little thin.”

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