Retail Renaissance
Retail fundamentals have recovered in a lot of places, but few markets have as much sizzle these days as greater Philly. That’s why we’re excited to hold the fourth annual Philadelphia Retail Real Estate Summit at the Rittenhouse at 7:30am on Feb. 19.
BET Investment president Michael Markman, a speaker at our event (snapped in Jerusalem with his family), expects 2015 to be the year that retail absorption picks up dramatically in all of the first- and second-ring Philly metro markets. “There seems to be a plethora of midsized tenants ready to take well-located empty boxes as they return to the market,” he says. In addition, development and redevelopment has been gaining momentum in the Philadelphia suburbs.
Two examples of the trend are the Abington Shopping Center, where BET backfilled an empty box with Sports Authority, and the Granite Run Mall (pictured), which the company is redeveloping into a walkable mixed-use property containing entertainment, retail and apartments. “In the Center City market, rents have been steadily increasing and space is hard to find,” Michael adds. “Overall, the retail market in the Philadelphia region has turned the corner and looks great.”
Starbucks store development manager Greg Rees, who will also be a speaker, tells us that the new projects in the city and suburbs will provide new growth opportunities for the coffee purveyor. Customer retention is critical for the retail food industry, he says, so identifying and securing the prime location in each of the new developments, combined with the overall evolution of the Starbucks brand, will be a critical component of the company’s continued success in the Philadelphia market.
Philadelphia was one of the original markets for Starbucks East Coast expansion in the 1990s (and what did people do at coffee shops before smartphones?). That means that a lot of the company’s existing locations are cafés without a drive-thru component, and are now ready for an upgrade. “Repositioning of our existing store base will be another key growth opportunity for Starbucks,” Greg says. Our Retail Summit kicks off with breakfast and schmoozing at 7:30am. Sign up here.
