2019 SHOPPING CENTER REPORT
2019 SHOPPING CENTER REPORT Written by Andy Bulson, Principal Ground up development hit yet another new all-time low in 2018 with only 870,600 square feet of new construction space opening and a projection of even less in 2019. At the same time, there are several junior anchor and anchor-sized retailers expanding. However, this demand is being met by retailers who can re-use existing vacant boxes which contributes to ground up construction starts being very low. GROCERY STORES ARE STILL ACTIVE 2018 saw the opening of Melody Farms, a 252,000 square foot Whole Foods anchored shopping center developed by Regency Centers. This project personifies the sense of place developers of successful projects around the country are trying to create. In addition to the upscale grocer and merchants, the property includes unique art pieces and well thought out public spaces with appealing landscape design. This creates an important social experiential shopping environment that contrasts greatly with solitary one click at home buying. The 2018 grand opening of the Mariano s in Crystal Lake may very well conclude the eightyear rollout of this 44-store chain now owned by Kroger. Future growth plans for the chain have not been divulged by Kroger but all indications suggest nominal to no growth for the once heralded grocery operator. Woodman s debuted yet another new store in Buffalo Grove which is the first of three stores to open in a recent expansion push for the Wisconsin-based grocer. Future openings are slated for Lakemoor and Bloomingdale, which is slightly reduced from the other expansion markets Woodman s was once pursuing. FITNESS CENTERS RESHAPING SHOPPING CENTERS The fitness category is still very active with LA Fitness, Lifetime Fitness and more recently 24 Hour Fitness all competing for market share in the full service club category. LA Fitness has been the market leader and their aggressive growth plans continue despite the competition. Large scale fitness operators are no longer viewed as an undesirable, overly parking intensive use that shopping center owners once avoided. Perhaps this is in part a result of the overall low demand for big box retail which leaves few alternatives for landlords. Shopping Center Development 1983-2019
2019 SHOPPING CENTER REPORT THE CITY IS STILL HOT Target Express continues its growth in the city and urban areas, often providing the highly desirable first floor retail use so coveted by mixed use developers. All the while, Target s expansion of their full line Target stores is non-existent in the Chicago market. Demand for retail development within the City of Chicago remains strong but barriers to entry result in very little supply of big box or junior box availability. OTHER FACTORS IMPACT THE MARKET Soring construction costs create additional negative pressure on retail development and have resulted in a staggering reduction in the value of vacant space on both a leasehold and sale basis. With suburban populations on the decline retailers are rethinking the numbers of stores needed as well as the size of these stores. Right-sizing and consolidations in store networks are likely to continue. THE FUTURE OF RETAIL Brick and mortar retail is most certainly evolving but is by no means going away. Experiential, entertainment, medical, fitness and grocery operators are combining to re-craft the shopping center experience for consumers. Retailers are working to generate a halo effect in sales increases resulting from a successful omni channel approach that integrates home delivery, in store pick-up, brick and mortar locations and online presence giving consumers multiple channels from which purchases can be made and product fulfillment can take place.
MID-AMERICA REAL ESTATE CORPORATION CHICAGOLAND 2019 RETAIL REPORT Summary TOTAL NUMBER OF CENTERS YEAR TOTAL DEVELOPMENT SQUARE FEET OPENING EXPANDING TOTAL 1993 6,433,000 31 14 45 1994 6,585,000 23 18 41 1995 3,262,000 16 12 28 1996 4,857,000 28 13 41 1997 3,499,500 24 12 36 1998 4,414,000 31 11 42 1999 4,069,000 23 16 39 2000 5,631,050 27 16 43 2001 4,807,000 35 8 43 2002 5,680,000 34 13 47 2003 4,130,000 34 15 49 2004 5,559,000 31 10 41 2005 5,035,000 22 14 36 2006 6,034,000 35 8 43 2007 8,382,000 34 16 50 2008 3,701,000 20 5 25 2009 1,727,800 9 1 10 2010 1,184,400 10 2 12 2011 1,025,800 6 2 8 2012 1,139,680 7 4 11 2013 2,264,500 15 5 20 2014 2,651,000 15 6 21 2015 2,065,670 13 4 17 2016 1,535,600 13 2 15 2017 1,043,570 13 3 16 2018 870,600 5 1 6 2019 598,400 6 0 6 TOTAL THRU 2019 136,271,420 762 271 1,033 TBA 37,030,200 99 64 163 9,000,000 Shopping Center Development 8,000,000 7,000,000 62000.00 62000.00 6,000,000 5,000,000 4,000,000 155000.00 3,000,000 2,000,000 1,000,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it.
MID-AMERICA REAL ESTATE CORPORATION CHICAGOLAND 2019 RETAIL REPORT 2018 CENTER DEVELOPER/OWNER ANCHORS SQ.FT. SQ.FT. DATE 1 NEC Route 60 & Milwaukee Regency Whole Foods, REI, 252,000 F2018 Vernon Hills, IL Nordstrom Rack, Home Goods 2 Skokie Blvd. & Sunset Ridge Lifetime Fitness Lifetime Fitness 86,000 F2018 Northbrook, IL 3 Route 14 & Virginia Continental Mariano's 74,800 S2018 Crystal Lake, IL 4 NWC Milwaukee & Deerfield Shorewood Woodman's 275,000 F2018 Buffalo Grove, IL 5 The Pearl Rosemont Dave & Busters, Restaurants 60,000 S2018 Balmoral & 294 Rosemont 6 Division, Milwaukee & Ashland Hubbard Street Target Express 12,800 F2018 Chicago Total 2018 Openings 760,600 Total 2018 Expansions 110,000 Grand Total 2018 Construction 870,600
MID-AMERICA REAL ESTATE CORPORATION CHICAGOLAND 2019 RETAIL REPORT CENTER DEVELOPER/OWNER ANCHORS SQ.FT. SQ.FT. DATE 1 Rt 12 & Rt 22 Woodman's Woodman's 244,000 F2019 Lakemoor 2019 2 Concorde at Sheridan Three Corners Target Express 29,400 F2019 NWQ Sheridan & Devon 3 SWC Sheffield & Addison M & R / Bucksbaum Cinemex, Lucky Strike 155,000 S2019 4 SEC Fullerton & Lincoln McCaffery Equinox, Kohler Spa, shops 80,000 F2019 5 SEQ Roosevelt & Dan Ryan Jerry Karp Bob's Furniture 42,000 S2019 6 61st & Cottage Grove Terraco Jewel 48,000 S2019 Total 2019 Openings 598,400 Total 2019 Expansions 0 Grand Total 2019 Construction 598,400
rely on the midwest s retail real estate experts Written by: Andy Bulson Principal 630.945.7376 ABulson@MidAmericaGrp.com MidAmericaGrp.com ILLINOIS One Parkview Plaza, 9th Floor Oakbrook Terrace, Illinois 60181 630.954.7300 CHICAGO 410 N Michigan Ave, Suite 1100 Chicago, Illinois 60611 630.954.7327 MINNESOTA 5353 Wayzata Blvd, Suite 650 Minneapolis, Minnesota 55416 952.563.6600 WISCONSIN 648 N Plankinton Ave, Suite 264 Milwaukee, Wisconsin 53203 414.273.4600 MICHIGAN 38500 Woodward Ave, Suite 100 Bloomfield Hills, Michigan 48304 248.855.6800