Where are developers building new retail?
In the suburbs, shift from malls to mixed-use
Developers in the suburbs continue to build retail despite the sector’s woes.
They’re just not building retail spots at big suburban shopping malls, the Wall Street Journal reported.
Housing developers and those with retail expertise are joining forces in places like Florida, Massachusetts and Arizona to build pedestrian-friendly retail adjacent to housing.
“The single biggest change is walkability,” said Steve Patterson, chief executive of Related Development LLC in Miami, which earlier this year opened a mixed-use project in Doral, Florida., that had 250,000 square feet of retail along with 700 residential units.
And some retail landlords are developing residential units or offices next to malls and shopping centers, which helps support foot traffic for retailers. But the expertise to pull off such projects can take years to build.
“It’s not something you decide on a Friday and execute on a Monday,” Federal Realty West Coast president Jeff Berkes said. “It’s not always easy and it’s not always perfect.” [WSJ] – Rich Bockmann