Industry Education

CBRE Identifies San Antonio’s Pearl District Among 22 Prime Global Examples of Growing Retail Placemaking Trend

Posted on 1.9.17 by Kim McClellan in Industry Education, Market Insight, News & Trends

Effective Retail Places Use Leisure, Technology, Planning To Lure Shoppers, Who Now Want Shopping To Be Both Functional, Social

SAN ANTONIO – Jan. 9, 2017 – CBRE Group, Inc. released a report defining retail’s role in the growing trend of placemaking, as retail centers across the globe strive to create environments that attract shoppers and keep them returning amid the expanding culture of online shopping. The CBRE report spotlights 22 international retail centers, including the Pearl neighborhood in San Antonio, that illustrate the varied ways in which retail owners and occupants are creating unique consumer experiences today.

CBRE researchers selected the report’s highlighted properties by considering those established among the best in their region and that include at least one of five key components that CBRE identifies as critical for placemaking:

  • Leisure elements such as restaurants, bars, theaters, sports facilities or scheduled events.
  • Incorporation of technology such as social media and online sales, as well as tools such as public Wi-Fi and parking apps.
  • Consideration for sustainability and well being for tenants and visitors.
  • A focus on vertical, multistory retail, most often in urban environments.
  • And a strong master plan for seamlessly combining varied uses in one property.

San Antonio’s Pearl neighborhood, a redevelopment of the historic Pearl Brewing Company, has been a catalyst for the reinvention of San Antonio’s urban core. It exemplifies placemaking with a focus on leisure and all things culinary, fueled by people, culture, walkability, experiences and food. Since the redevelopment project began in 2002, Pearl has focused on creating authentic experiences and nurturing entrepreneurial endeavors.

Phillip Halliday, Senior Associate, Retail, CBRE said: “With the Culinary Institute of America as an anchor, Pearl has carefully created a thriving cultural destination made up of chef-driven restaurants, a farmers market and signature food events—all rooted in authenticity and excellence. This dynamic culinary scene has become one of Pearl’s main attractions and points of differentiation, and has put San Antonio in the national spotlight.”

Pearl is now one of the city’s top destinations for locals and visitors, and walkability is a key element, connecting the residential, office and retail components to create a vibrant urban community across 16 blocks and nearly 23 acres. The developers have focused strongly on historic preservation throughout the project, as well as sustainability through materials and systems.

Gene Williams, First Vice President, Retail, CBRE said: “The Historic Pearl Brewery Development is truly an internationally recognized project defining the modern trend of urban placemaking. It has been a catalyst for changing the landscape of San Antonio and moving our city to the top of the priority list for growth and expansion by virtually all of the top retailers across the country. With more phases of development to come, we are sure to see many new retailers enter the market and focus on opening stores in the Pearl area.”

Overall, retail plays a critical role in placemaking in that stores, restaurants and entertainment venues contribute substantially to creating a property’s environment and visitor experiences. Such placemaking now is essential for retail developers and investors, as shoppers want their excursions to be both functional and social. At Pearl, visitors can participate in a variety of events focused on food, music and all things local, such as the popular weekly farmers’ market with products sourced within a 150-mile radius.

“Great retail placemaking isn’t limited to one country or one continent,” said Anthony Buono, Chairman of CBRE’s Global Retail Executive Committee. “From the eclectic mix of local eateries in New York’s Chelsea Market to the technological amenities of Hong Kong’s Yoho Mall and the leisure and entertainment options at London’s Spitalfields market, best practices in retail placemaking are applicable globally. These lessons are vital to learn as e-commerce changes shopping habits.”

Other North American properties featured in the report include New York’s Chelsea Market, Los Angeles’ Runway at Playa Vista, San Francisco’s Ghirardelli Square, the Miami Design District, Toronto’s Distillery District and Lima Larcomar in Lima, Peru. The report’s other examples range from globally known properties such as the Dubai Mall in the United Arab Emirates to emerging projects such as Stockholm’s Mall of Scandinavia district.

CBRE Identifies 22 Centers Across Globe As Prime Example Of Growing Trend Of Retail Placemaking

Posted on 12.6.16 by Kim McClellan in Industry Education, Market Insight, News & Trends

Effective Retail Places Use Leisure, Technology, Planning To Lure Shoppers, Who Now Want Shopping To Be Both Functional, Social

Los Angeles – Dec. 6, 2016 CBRE Group, Inc., today released a report defining retail’s role in the growing trend of placemaking, as retail centers across the globe strive to create environments that attract shoppers and keep them returning amid the expanding culture of online shopping. The CBRE report spotlights 22 retail centers across the globe that illustrate the varied ways in which retail owners and occupants are creating unique consumer experiences today.

CBRE outlines in the report several components common to well-crafted retail places, of which a prime, still-unfolding example is addition of technology into the experience of shopping.

For example, Hong Kong’s Yoho Mall offers apps to help shoppers find parking spaces, sign onto restaurants’ wait lists and obtain instant coupons from the mall’s stores. The Val D’Europe Shopping Center in France provides digital totems and interactive kiosks to guide shoppers through the property. The DLF Mall of India in New Delhi offers digital video walls, free wifi and way-finder apps.

Overall, retail plays a critical role in placemaking in that stores, restaurants and entertainment venues contribute substantially to creating a property’s environment and the experiences that visitors have within it. Such placemaking now is essential for retail developers and investors as shoppers want their excursions to be both functional and social.

“Great retail placemaking isn’t limited to one country or one continent,” said Anthony Buono, Chairman of CBRE’s Global Retail Executive Committee. “From the eclectic mix of local eateries in New York’s Chelsea Market to the technological amenities of Hong Kong’s Yoho Mall and the leisure and entertainment options at London’s Spitalfields market, best practices in retail placemaking are applicable globally. These lessons are vital to learn as e-commerce changes shopping habits.”

CBRE researchers selected the report’s highlighted properties by considering those established among the best in their region and that include at least one of five key components that CBRE identifies as critical for placemaking:

  • Leisure elements such as restaurants, bars, theaters, sports facilities or scheduled events.
  • Incorporation of technology such as social media and online sales as well as tools such as public wifi, parking apps and the like.
  • Consideration for sustainability and well being for tenants and visitors.
  • A focus on vertical, multistory retail, most often in urban environments.
  • And a strong master plan for seamlessly combining varied uses in one property.

The report describes the placemaking advantages of seven properties in the Americas: New York’s Chelsea Market, Los Angeles’ Runway at Playa Vista, San Francisco’s Ghirardelli Square, San Antonio’s Pearl District, the Miami Design District, Toronto’s Distillery District and Lima Larcomar in Lima, Peru.

The report’s other examples range from globally known properties such as the Dubai Mall in the United Arab Emirates to emerging projects such as Stockholm’s Mall of Scandinavia district.

To view the report, click here.

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Retailers Focusing on Efficiency, Variety This Season

Posted on 10.26.16 by Kim McClellan in Industry Education, Market Insight, News & Trends

CBRE Report Outlines Trends in E-Commerce, Promotions, Pop-Ups

HOUSTON – October 26, 2016 – Innovation and consumer choice are fueling the most significant trends shaping this holiday shopping season, including a proliferation of “rogue” retailing and the refinement of e-commerce distribution and returns, according to a new report from CBRE Group, Inc. 

With most forecasters predicting a healthy but unspectacular increase in holiday sales this season, many storylines are likely to focus on the changes within retailing rather than the season’s volume of sales. To that end, the CBRE report outlines four of this season’s trends centered on improvements in e-commerce logistics as well as shoppers’ demand for new and unique options.

  • The mainstreaming of “rogue retailing”: Shopping center owners and retailers are seeking to entice shoppers with unusual concepts that make each visit different. Those include temporary, pop-up stores and more independent, craft stores. Mall owners such as Westfield Group, as well as several established retailers like Nordstrom Inc., are among those embracing the pop-up format.
  • Expanded e-commerce: Online sales are again expected to outpace in-store sales this season. But what’s not as well-known is who is driving those clicks: Brick-and-mortar retailers dominate online sales, and they’re investing in their platforms to do more. Additionally, mobile commerce has emerged as the fastest growing sector of online sales.
  • Improved logistics beget e-commerce profits: This could be the season in which the technology, analytics, delivery networks and past experience amassed by retailers and shippers coalesce to produce ideal holiday logistics – to the point of making e-commerce profitable. That includes shoring up strategies for minimizing returns of goods bought online and quickly processing those that are sent back.
  • The holiday promotions shuffle: A proliferation of landmark shopping days, from Black Friday and Small Business Saturday to Green Monday and Free Shipping Day, is allowing retailers to spread their promotions and shopper traffic across the entire season rather than just a couple of key days. Many thus can better manage their inventory. Shoppers, meanwhile, tend to dwell longer and spend more absent the hectic crowds. 

“This holiday shopping season is all about thinking outside the traditional retail box,” said Melina Cordero, CBRE Head of Retail Research, the Americas. “Retailers are innovating their store formats and revamping their e-commerce fulfillment systems. Owners are adding new and intriguing stores to their mix. It will add up to a very different and more efficient holiday shopping season.”

To read the full report, click here.

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Global Prime Retail Rents Rise as Traditional Fashion Capitals Register Largest Year-Over-Year Gains

Posted on 10.20.16 by Kim McClellan in Industry Education, Market Insight, News & Trends

Manhattan’s Fifth Avenue Ascends to World’s Highest Prime Rent While Hong Kong’s Russell Street Slides

Los Angeles – Oct. 20, 2016 – New York’s Fifth Avenue commands the world’s highest prime rents for retail space as rent gains in the Americas and Europe outpaced those in the Asia-Pacific region, according to a new report from CBRE Group, Inc. 

CBRE’s semiannual Global Prime Retail Rents report found that prime retail rents grew 3.7 percent globally in the second quarter of 2016 from a year earlier, buoyed by consumer confidence in the U.S. and limited supply in Europe’s top retail markets. Regionally, prime rents grew the most in Europe, the Middle East and Africa (up 6.2 percent), followed by the Americas (up 3.9 percent) and Asia (2.1 percent). The report covers 92 markets across the globe. 

Prime rents are the highest achievable rents for a retail storefront in a market’s best location with the best quality and specifications of space.

The perennial top markets for global retail showed substantial divergence in the past year. Prime retail rents on New York’s Fifth Avenue between 56th and 58th streets increased by 14.3 percent in the past year to $4,000 per square foot per year as of this year’s second quarter. Meanwhile, prime rents on Hong Kong’s Russell Street declined by 33 percent to $1,856 per square foot per year amid a slowdown in tourist arrivals from the Chinese mainland and more prudent spending by locals.

“The cooling off of China’s economy has manifest itself in sharply lower rents in Hong Kong, which has allowed a new crop of retailers to enter the coveted city,” said Anthony Buono, Chairman of CBRE’s Global Retail Executive Committee. “At the same time, prime retail rents in New York likely won’t move higher from here, as this market already has some of the world’s most expensive prime rents. London, however, has such scant supply of available prime space that its strong rent growth is likely to continue.”

In Manhattan, many international and domestic retailers alike are willing to make substantial investments to establish a presence for their brand on the world stage of Fifth Avenue’s priciest blocks. Others are content to gravitate to nearby submarkets that are less expensive but still highly coveted as retail showcases, such as Times Square, Downtown Manhattan and Brooklyn.

“New York’s high streets have gone through a dramatic evolution in recent years, with rates rising strongly amid a rather ebullient market running from 2013 to late 2015,” said Andrew S. Goldberg, a Vice Chairman of Retail Services in CBRE’s New York City office. “Over the past year, we’ve seen increasing availability and decreasing demand on the high streets. Also retailers are now receiving significant concessions from owners.”

Top 10 Global High Streets By Prime Retail Rent Level:

Market Street/Location Prime Rent Q2 2016
New York Fifth Avenue $4,000
Hong Kong Russell Street $1,856
London New Bond Street $1,684
Paris Avenue des Champs-Elysees $1,366
Tokyo Chuo Dari $1,311
Sydney Shopping center $1,003
Zurich Bahnhofstrasse $906
Singapore Shopping center $857
Beijing Shopping center $827
Guangzhou Shopping center $805

In terms of growth or prime retail rents in the past year, Europe is the story. Half of the 10 fastest growing prime retail rents in the past year came in European markets, led by London with a 53.8 percent increase. The few spaces that come available on London’s high streets are pursued by numerous aspiring lessees, resulting in steep rents.

Other European markets among the top 10 for prime rent growth are Rome (28.9 percent increase); Milan, Italy (20 percent); Sofia, Bulgaria (12.5 percent); and Warsaw, Poland (11.1 percent). Asia Pacific landed two markets in the top 10: Auckland, New Zealand (23.7 percent) and Sydney, Australia (14 percent). The Middle East had one: Dubai (12.5%). And the Americas had two: New York (14.3 percent) and Seattle (11.1 percent).

Other notable U.S. markets reflected as gainers in the report include Chicago (9.4 percent increase); Washington, D.C. (8.7 percent); Denver (7.7 percent); and San Francisco (3.8 percent). The only major U.S. market to register a decline in its prime retail rent was Miami, which posted a 7.1 percent loss on tempered tourism from Latin America due to challenged economies there.

National Retail Availability Rate Falls Further Amid Solid Demand, Constrained New Supply

Posted on 10.13.16 by Kim McClellan in Industry Education, Market Insight

Retail Availability Tightens in More Than Two Thirds of U.S. Markets

Los Angeles – Oct. 13, 2016 Demand for retail space in U.S. neighborhood, community and strip retail centers continues to grow as new construction remains relatively muted and retailers meld their online and bricks-and-mortar operations, according to the latest analysis by CBRE Group, Inc.

More than two thirds of the 62 markets tracked by CBRE posted less availability of retail space in the third quarter than in the second. Nationally, average availability registered 10.4 percent in the third quarter, down 20 basis points (bps) from the second and down 50 bps from a year earlier.

Those figures mark a continuation of a gradual, five-year recovery in the U.S. retail-property market. The latest availability rate marks a 280-bps improvement from the market’s peak availability of 13.2 percent in 2011. Availability as referenced by CBRE encompasses all space available for lease, including space currently occupied but otherwise listed for use by other tenants.

All told, 43 of the markets tracked logged a sequential decline in the availability of retail space in the third quarter from the second. On a year-over-year basis, 48 markets registered tighter availability.

“Consumers like to shop from home, but they also enjoy the social aspect of shopping, dining or entertaining themselves with friends and family in various retail settings,” said Jeffrey Havsy, CBRE Chief Economist in the Americas. “We will continue to see slow, yet steady demand for space as retailers work to entice shoppers of all ages into their environment.”

Retail sales have benefited of late from healthy growth in U.S. employment and income. Meanwhile, even as mature retailers have slowed their expansions, additional demand is being driven by new concepts and online retailers looking to expand their exposure with brick-and-mortar storefronts. Outlooks for the holiday season are generally upbeat, with the National Retail Federation forecasting a solid 3.6 percent sales gain for November and December from a year earlier.

A relative lack of new supply still is benefiting the market. CBRE forecasts that developers will deliver roughly 16.6 million square feet of new neighborhood, community and strip retail centers in the U.S. this year and 16.3 million next year. In comparison, the peak for deliveries was 72.6 million square feet in 2005.

In the third quarter, the greatest year-over-year declines in availability came in Denver, Nashville, Providence, Tampa and Minneapolis. Those that posted the largest availability increases from a year ago include Long Island, Birmingham and Wilmington, Del.

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