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Shopping Center Starts Dwindling Behind Major Wave of New Supply

CoStar Exhibits Current Construction and Delivery Trends, Spotlights New Shopping Center Developments Across the Country
April 2, 2008
The total RSF of U.S. shopping centers delivered annually has been dropping each year since peaking at 94 million square feet in 2005. However, this year a huge wave of new centers that began construction back in better days (economically speaking) is now delivering, with 25 million square feet already delivered in the first quarter of this year. With still more space in the pipeline set to deliver in coming months, there is the very real possibility that just as much or more RSF of new shopping center space will reach completion during 2008.

What makes this massive addition of new supply somewhat disconcerting are the vacancy statistics of shopping centers delivered over the past three years. CoStar's Year-End National Retail Report showed U.S. shopping centers ended 2007 with an average vacancy rate of 7.6 percent. The chart below shows that shopping centers delivered between 2001 and 2004 have a vacancy level below this national average, however, the rate rises with each year -- shopping centers delivered in 2005 have a current average vacancy of 9%; 2006 (13%), 2007 (22%), and 2008 (28%). These statistics suggest that owners of shopping centers built since 2006 still have yet to achieve a desired occupancy level.

The full impact current market conditions are having on developers' construction decisions won't become clear until the end of this year when we see how much RSF actually delivers. We are already seeing early indicators of a pullback. Construction starts were significantly down in 2007 in comparison to 2006, and with only six million square feet starting construction so far in 2008 (the lowest first quarter level in the past five years), all indications point to a trend of developers holding back or scrapping construction plans until the capital markets and/or general economic conditions improve.

The data presented in this chart is the result of an analytic search in CoStar Property Professional of all types of shopping centers, existing and under construction, across all of the U.S. markets CoStar tracks.

In an upcoming issue of CoStar Advisor, we'll talk to retail development executives for their opinions on the statistics and trends detailed by CoStar this week.

The remainder of this story will focus on a handful of representative retail construction projects and provide construction deliveries, starts, delays and proposals covered during first quarter 2008 spotlighted by region. By no surprise, little major development activity is in the pipeline of land-constrained markets. Developers continue to carry out numerous projects already in the pipeline in high growth markets of Phoenix, Dallas and Tampa, while some have even announced new plans.

Please, share with me any comments you might have in response to this article, or the CoStar Advisor newsletter in general. Relevant comments emailed to Senior Editor Sasha Pardy at will be added as updates.


Crossing at Lisbon - Lisbon, CT
Cedarwood Development began clearing the land during first quarter for Crossing at Lisbon, a 319,166-square-foot shopping center to be anchored by Target, Lowe's and Best Buy in Lisbon, CT (about 45 minutes southeast of Hartford). Delivery is scheduled for September 2008.

Chapel View - Cranston, RI
Stores have been opening over the last couple months at Chapel View shopping center in Cranston, RI. Located at the intersection of Route 2 and Sockanosset Cross Road, Carpionato Properties has created an upscale shopping and dining destination. The development is named for a stone chapel that will become home to a restaurant. The center is anchored by Shaw's supermarket and REI Outdoor and also features a Johnny Rockets, Ted's Montana Grill and Pei Wei, as well as several other boutique shops.


Upland Square - Pottstown, PA
Cedar Shopping Centers, in partnership with Tristate Ventures LP, broke ground mid-March on Upland Square, a 680,000-square-foot power center located on 106 acres at Route 100 and State Street in Pottstown, Pennsylvania (about 40 miles northwest of Philadelphia). Anchored by Target, Giant supermarket, JC Penney, Best Buy, Bed Bath & Beyond, Staples, Petco and A.C. Moore, the $80 million project is scheduled for completion July 2009.

Richwood Village - Harrison Township, NJ
Madison Marquette and Canuso Communities have partnered up to bring a 370-acre mixed-use development to Harrison Township, NJ. Located about 20 minutes from Philadelphia along Route 55, central to Richwood Village are plans for a 300,000-square-foot walk-able village-style retail center; in addition, another 700,000 square feet of retail and office space is planned to complement 1,200 homes. The first phase of Richwood is schedule for opening fall 2010.

World Trade Center Retail - New York City
Westfield Group and The Port Authority reached an agreement to jointly develop the retail portion of the World Trade Center. The 488,000 square feet of high profile retail space would be the first new retail project to be built in lower Manhattan since the 9/11 tragedy. Specifically, retail shops would be located at the street level and above in three office towers, as well as in two-stories in the concourses that will link the Trade Center with the subway and rail systems. The tenant mix will include local, regional, national and international shops as well as quick service to casual to high-end dining. The Port Authority will provide approximately $825 million and Westfield will provide approximately $625 million toward the $1.45 billion retail project.

Please, share with me any comments you might have in response to this article, or the CoStar Advisor newsletter in general. Relevant comments emailed to Senior Editor Sasha Pardy at will be added as updates.


Main Street Eldersburg - Eldersburg, MD
Black Oak Associates has already broken ground on Main Street Eldersburg, which is located on 12.5 acres at the convergence of MD Routes 32 and 36 in Eldersburg, MD. Grading is nearing completion and ground-up construction is scheduled to start very soon. The 83,000-square-foot project will be constructed in accordance with LEED (Leadership in Energy and Environmental Design) standards. Tenants have reserved space for at least 40% of the project, which is expected to deliver by first quarter 2009.

Mill Creek Commons - Lake Wylie, SC
Crescent Retail Group, a subsidiary of Crescent Resources, broke ground on Mill Creek Commons in January. The 350,000-square-foot shopping center, anchored by Wal-Mart Supercenter and Lowe's, is located at the intersection of Hwy. 557 and Hwy. 274 in Lake Wylie, SC. The center will also include 50,000 square feet of small shop space as Phase II. The Wal-Mart is scheduled to open Fall 2009.

North Logan Commons - Loganville, GA
Faison Enterprises recently broke ground on North Logan Commons, a 370,000-square-foot power center in Loganville, GA. Lowe's, Best Buy, Dick's Sporting Goods, PetsMart and Office Depot will anchor the center and be joined by 68,000 square feet of junior anchor and small shop space. Completion is scheduled for spring 2009. Phase II of the development is South Logan Commons, a 350,000-square-foot power center located opposite of North Logan Commons on 41 acres. South Logan will follow with opening scheduled for 2010.

Current at Lee Vista - Orlando, FL
The Current at Lee Vista started construction during first quarter on 85 acres in the Airport submarket of Southeast Orlando. Developed by Premier Properties, the 675,000-square-foot, mixed-use project will be anchored by Super Target, Bealls, Best Buy, Books A Million, Marshalls, Michaels, Office Depot, and PetSmart. Completion is scheduled for spring 2009.

Hammock Landing - West Melbourne, FL
CBL & Associates Properties (NYSE: CBL ) and The Benchmark Group recently broke ground on Hammock Landing, located on 78 acres at the northwest intersection of I-95 and Palm Bay Road in West Melbourne. The power center will feature 750,000 square feet of big box, specialty and dining tenants; including Marshall's, Linens N Things, Michael's, and Petco. Completion is slated for spring 2009.

Caleb's Creek - Greensboro, NC
The Hommel Group has started clearing, during first quarter, the first 50 acres of a 900-acre site tagged for Caleb's Creek, an $800 million mixed-use project both in Greensboro and Summerfield, NC. Plans call for an 18-hole golf course, 6,000 homes, two hotels, and 107 acres of land that will be primarily dedicated to retail space.

Park West Village - Morrisville, NC
Casto Lifestyle Properties and First Carolina Properties plan to break ground this quarter on Park West. The 100-acre mixed-use lifestyle center project, located at Cary Parkway and Hwy 54 in Morrisville, NC, will include 750,000 square feet of retail space, 50,000 square feet of office space, an 140-room hotel, 321 apartments and significant green space. Delivery is expected by fall 2009.

Southshore Commons - Tampa, FL
Equity Real Estate and Nationwide Realty Investors have partnered up to turn 133-acre parcel at the southeast corner of Big Bend Road and I-75 in Riverview, FL (southeast Tampa area) into a $280 million, 1.6-million-square-foot mixed-use development dubbed "Southshore Commons." 1 million square feet of retail/dining/entertainment space, 490,000 square feet of office space, 250 hotel rooms and a multiplex cinema will play off a 14-acre lake and town square park/venue in the center of the project. Groundbreaking is scheduled for third quarter and first phase delivery is planned for fall 2009.

DC USA - Washington D.C.
Target opened its first store in Washington D.C. on schedule the first week of March at DC USA, a 540,000-square-foot, three-story urban retail project located on nearly five acres on the west side of 14th Street between Park Road and Irving Street in the formerly-blighted neighborhood of Columbia Heights. The $145 million project is the brainchild of Grid Properties and Gotham Developers.

Posner Commons - Orlando, FL
Kitson & Partners' 400-acre master-planned community, Posner Park is located in Orlando just West of Disney World. Posner Commons, the 500,000-square-foot power center that is central to the development at the southeast corner of I-4 and US Hwy 27 in Polk County, is the result of a partnership between Trammell Crow Co., Boardwalk Land Development and Met Life. Target, Belk and Books-A-Million opened late first quarter 2008, while Best Buy and Staples are opening soon. JC Penney, Dick's, Ross, Michael's and PetSmart will open in late summer or early fall. At the completion of the $500 million Posner Park, the community should have 1.5 million square-feet of retail space, 2,600 hotel rooms, 2,000 residential units and 150 acres of open land.

Clermont Landing - Clermont, FL
Weingarten Realty Investors secured a 104,000-square-foot JC Penney to anchor Clermont Landing, a 366,000-square-foot shopping center scheduled to open Oct. 2008; Epic Theater and Famous Footwear are also tenants.

Shops at Wiregrass - Tampa, FL
The Goodman Company and Forest City Commercial Development are scheduled to open The Shops at Wiregrass, an 800,000-square-foot, Main Street-style open-air shopping, dining and entertainment center, on October 30, 2008 at State Road 56 and Bruce B. Downs Boulevard in Wesley Chapel/New Tampa, Florida.

Chalifoux - Osceola County, FL
Chalifoux Management Group recently closed on 37 acres of land in Poinciana, Osceola County, Florida from Avatar Properties. Chalifoux plans a $100-million mixed-use project for the site to that will encompass 300,000 square feet of retail and restaurant space, as well as 150,000 square feet of office space. The site is part of the 1,545-acre Poinciana Office & Industrial Park, located at US Highway 17/92 and Poinciana Boulevard on the outskirts of the Orlando metropolitan area. Construction is expected to start by the end of 2008.

Annapolis Towne Centre at Parole - Annapolis, MD
Greenberg Gibbons Commercial (GGC), in partnership with Petrie Ross Ventures, is under construction on the 35-acre, $400 million Annapolis Towne Centre at Parole. Delivery is scheduled for June 2008 with a grand opening in October 2008. Anchored by Target (opening October 2008) and Whole Foods, the vertical mixed-use re-development will boast up to twelve stories amounting to nearly 2 million square feet. Components include 608,000 square feet of retail/dining/entertainment space, up to 120,000 square feet of office space, up to 900 condos and apartments, and a 200-room hotel.

Please, share with me any comments you might have in response to this article, or the CoStar Advisor newsletter in general. Relevant comments emailed to Senior Editor Sasha Pardy at will be added as updates.


Gateway Centre - Smyrna, TN
Capitol Development International (CDI) secured JC Penney to anchor Gateway Centre, a 260,000-square-foot open-air shopping center located at Sam Ridley Parkway and Wolverine Drive in Smyrna, TN, a northeast suburb of Nashville. The JC Penney will be 105,000 square feet and is slated to open fall 2009. Capitol is working on pre-leasing the remaining 155,000 square feet of the project.

WSG - Memphis, TN
WSG Development filed plans for a $180 million mixed-use development in Memphis located at the corner of Poplar and Cleveland in Midtown. Plans for the 26-acre site include 550,000 square feet of retail and restaurants in addition to office and medical space, a hotel, and residences in a village format. A major discount anchor is anticipated.

Ridgeway Trace - Memphis, TN
Weingarten Realty Investors (NYSE:WRI ) secured a 140,000-square-foot Target to anchor Ridgeway Trace, a 26-acre, 290,000-square-foot shopping center in East Memphis scheduled to open spring 2009.


Houston Premium Outlet Center - Cypress, TX
Simon Property Group, Inc. (NYSE: SPG ), through its Chelsea outlet division, opened the Houston Premium Outlets in Cypress, Texas on March 27th. The 427,000-square-foot center is located 30 miles west of Houston off US Route 290 at the new Fairfield Place Drive exit.

Bridge Street Town Centre - McKinney, TX
O&S Holdings celebrated the groundbreaking of Bridge Street Town Centre on February 28th. The site of the 450,000-square-foot lifestyle center is located at the corner of US Freeway 75 and State Highway 121 in McKinney, TX -- a northeast suburb of Dallas. The center will be anchored by a 14-screen Monaco Pictures, which will be accompanied by 35 upscale restaurants and retail shops. The 91-acre project also includes 200,000 square feet of office space, a five-story 222-room Westin Hotel complete with 7,000-square-foot spa, a 35,000-square-foot convention center and the Collin College Higher Education Center. The first phase of the project is scheduled to deliver fall 2009.

Uptown Village - Cedar Hill, TX
The MG Herring Group opened Uptown Village at Cedar Hill on March 12th in Cedar Hill, TX. Dillard’s, Dick’s Sporting Goods and Barnes & Noble anchor the 725,000-square-foot development. Located at FM 1382 and Highway 67 adjacent to Uptown Boulevard and Pleasant Run Road, the project will include a 120,000-square-foot future anchor and 27,000 square feet of office space.

Watters Creek - Allen, TX
Trademark Property Company's Watters Creek at Montgomery Farm in Allen, Texas will open its 620,000-square-foot first phase this month. The 52-acre "urban retail resort" will eventually encompass 1.15 million square feet of mixed-use space, including residential, office, retail, dining, entertainment and hotel uses. The development is situated within the 500-acre Montgomery Farm master-planned residential community. The 300,000-square-foot Phase One retail is also joined by 230 multi-family units and 90,000 square feet of office space.

High Street at Stonebriar - Plano, TX
Ainbinder Company commenced construction during first quarter on High Street at Stonebriar, a 550,000-square-foot mixed-use lifestyle center development located on 35 acres bordering Hwy 121 and Parkwood Blvd in Plano, just north of Dallas. The Container Store will open this June at Stonebriar. The second phase will consist of 250,000 square feet of retail space and 100,000 square feet of office space. A boutique hotel is also in the works.

Oklahoma Plaza - Tulsa, OK
Resource Development will develop Oklahoma Plaza, an $110 million mixed-use lifestyle center to be constructed on 129 acres just off State Hwy 66 in Claremore, OK. The 625,000-square-foot retail, office and residential project will break ground in early summer. A 100-room Wyndham hotel and 14-screen movie theatre have been secured. Completion of the Plaza's first phase is mid-2009.

Icon's Midtown Dallas Mixed-Use
Icon Partners' massive $1 Billion project planned for Midtown Dallas will feature 525,000 square feet of retail, entertainment and restaurant space as a central piece of 3.7-million-square-foot mixed-use plan. With significant frontage along I-635/LBJ Freeway and Noel Road, Icon Midtown will also include a 50,000-square-foot district dedicated to a cooking school, unique grocery store and food-related vendors, and a TV studio; a LEED-certified, 34-story, 715,000-square-foot office tower; 500 residences, and a boutique hotel. Construction is expected to begin January 2009 and is estimated to continue for two years.

Tanger Outlet Center - Irving, TX
Tanger Factory Outlet Centers Inc. (NYSE: SKT ) announced a new outlet shopping center to be built on 50 acres of former University of Dallas property in Irving, Texas. Located at the northwest quadrant of busy State Highway 114 and Loop 12, the 380,000-square-foot center is one of the first major projects planned for the Texas Stadium Redevelopment Area. Pre-leasing has begun to find tenants that will reside in the center's 90 shops.

West 7th - Fort Worth, TX
Cypress Equities, the retail development arm of Staubach, recently closed on a $163 million construction loan after securing at least 55% of its tenant square footage for "West 7th", an 890,000-square-foot mixed use project in Downtown Fort Worth. Located on 15.5 acres at West 7th Street and University, the $200 million project includes 350,000 square feet of retail space, 200 square feet of office space, a 150-room Starwood hotel that includes 20 condo units and 345 apartment units. Opening is planned for fall 2009.

Shops at Mercer Crossing - Farmers Branch, TX
Icon Partners will develop The Shops at Mercer Crossing, a 500,000-square-foot "upscale value fashion center" to be located at the intersection of I-635/LBJ Freeway and Luna Road in Farmers Branch, Texas. The center will play an integral role in the success of Mercer Crossing, a 1,100-acre master planned community about 15 minutes from Downtown Dallas.

Please, share with me any comments you might have in response to this article, or the CoStar Advisor newsletter in general. Relevant comments emailed to Senior Editor Sasha Pardy at will be added as updates.


Hamilton Town Center - Noblesville, IN
Simon Property Group is nearing completion on Hamilton Town Center, a 950,000-square-foot open-air mall in Noblesville, IN. Bachrach, Chico's, Coldwater Creek, White House/Black Market, Zumiez, Ulta, Lenscrafters, Sunglass Hut, Claire's, and The Walking Company will be joining the previously announced retailers Old Navy, Borders, Dick's Sporting Goods, Stein Mart, Bed Bath & Beyond, and DSW. JC Penney opened October 2007 and a 16-screen Hamilton Theater opened in March. The remainder of the development will open in May.

Bridge Street Town Centre - Joliet, IL
O&S Holdings plans to break ground in 2009 on Bridge Street Town Centre Chicagoland, located at the intersection of I-55 and I-80 in Joliet, IL. The project will encompass 3 million square feet, including 1.5 million square feet of retail, restaurant and entertainment space, 800 multi and single-family residences, and 200,000 square feet of office space.

Orchard Crossing - Fort Wayne, IN
As development partners, Pine Tree Commercial Realty and Inland Real Estate are clearing the 32-acre site of the future 275,000-square-foot Orchard Crossing shopping center in Fort Wayne, Indiana. Anchor tenants include Target and Gordmans; both are opening October 2008.

Huntley Grove - Huntley, IL
Tucker Development recently broke ground on Huntley Grove, a 350,000-square-foot community center to be anchored by a 203,710-square-foot Wal-Mart Supercenter at the corner of Route 47 and Kreutzer Road un Huntley, IL. With the Wal-Mart scheduled to open this fall, the remainder of the center will follow by the end of 2008.

Villages at Portofino - Huntley, IL
The Portofino Group is developing The Villages at Portofino, a 105-acre mixed use development located at the intersection of Route 47 and Kreutzer Road in the Chicago suburb of Huntley. The 2 million-square-foot project will eventually include 960,000 square feet of retail, restaurant and entertainment space; 1 million square feet of office space; 177 apartments built atop the retail space; and 68 town homes. Construction of the 460,000-square-foot first phase will start second quarter 2009 and deliver fall 2010. The second phase of the development will be town center-like with 34 apartments over 86,000 square feet of retail space and additional office space. The third phase will involve the remainder of apartments and homes, 185,000 square feet of retail space, and additional office space.


The Meadows at Lake Saint Louis - St. Louis, MO
Davis Street Land Company is currently under construction on the 260,000-square-foot first phase of a 500,000-square-foot lifestyle center that sits upon 64 acres at Lake Saint Louis Boulevard and Interstate 64 in Lake Saint Louis, MO. Scheduled for completion August 2008, phase I of The Meadows at Lake Saint Louis will include an 130,000-square-foot Von Maur's department store anchor (the retailer's first Missouri store), a 25,000-square-foot Bed Bath & Beyond, Ann Taylor and Ann Taylor Loft, Chico's, Coldwater Creek, White House/Black Market, Banana Republic, Christopher & Banks, Bath & Body Works, Claire's, Sunglass Hut, New York & Co., Eddie Bauer, JoS. A. Bank, New Balance, Lenscrafters, The Walking Company, Kay Jewelers, Gymboree, Yankee Candle, and more. The project will also include a 110-120 room Marriott or Hilton Hotel.

Shoppes at Prairie Village - Lincoln, NE
The Shoppes at Prairie Village, a 370,000-square-foot shopping center located at 84th and Adams in Lincoln, Nebraska, is scheduled to open second quarter 2008. Grubb & Ellis is marketing the center, which is built in adjacent to the site of a Wal-Mart that opened late last year.

Shoppes at Horseshoe Bend - Lake Ozark, MO
The Shoppes at Horseshoe Bend broke ground December 2007 and is scheduled to begin ground up construction on a 400,000-square-foot phase one during second quarter. The project will eventually be an 800,000-square-foot super regional outdoor mall located at the intersection of Highway 54 and Lake Horseshoe Bend Parkway in Lake Ozark, MO. Developed by Cormac Company, phase one is scheduled to deliver May 2009. The center is part of a 470-acre master planned community.


Shoppes at Palazzo - Las Vegas
General Growth Properties (NYSE:GGP ) opened The Shoppes at Palazzo in January, a 450,000-square-foot luxury retail center that is part of The Palazzo Resort on the Las Vegas strip. The Shoppes include a 85,000-square-foot Barneys New York and more than 60 luxury boutiques and stores. Aside from a casino, The Palazzo also includes a 65,000-square-foot Canyon Ranch SpaClub, a 40/40 sports bar and lounge, a Lamborghini showroom, a 1,650-seat theater, and 3,000 all-suite rooms.

CityNorth - Phoenix, NV
Related Companies and Thomas J. Klutznick Company, the developers of the 144-acre CityNorth mixed-use development in Phoenix's northeast valley, have pushed the delivery of CityNorth Phase Two off by a year. In February, Related announced it had secured Bloomingdale's to co-anchor the second phase with Nordstrom's and at the time said phase two (which is also slated to include 250,000 square feet of specialty shops and restaurants) would open fall 2009. Now, that date is pushed off to late 2010, which is reportedly the result of lenders of the $570 million construction loan Related would need to complete the project saying they would prefer to hold off until economic conditions improve.

CityNorth Phase One, dubbed "High Street" and located at Loop 101 and 56th Street in Phoenix, is under construction and scheduled to open this October. CityNorth is planned to eventually include 5.5 million square feet of retail, hotel, residential, office, cultural, civic and entertainment uses, will serve as the urban core for the Desert Ridge master planned community.

Mesa Ranch Plaza - Mesa, AZ
Diversified Partners recently broke ground on the 214,400-square-foot Mesa Ranch Plaza at the northwest corner of Southern Ave and Stapley Drive in Mesa, AZ. The 20-acre project will feature Pro's Ranch Market and La Curacao. Phase one of Mesa Ranch is scheduled for completion August 2008.

Mohave Crossroads - Bullhead, AZ
Target and Kohl's opened their doors at Weingarten Realty's Mohave Crossroads in Bullhead City, AZ at the end of March. The open-air center also includes 232,632 square feet of space with anchors including Marshall's, Staples, PetsMart, Ross Dress for Less and Bed Bath & Beyond. Other tenants, scheduled to open between spring and fall of this year, include Famous Footwear, Fashion Bug, and Lane Bryant, among others. The project is located at the convergence of Hwy 95 and Bullhead Parkway and the site includes 39 acres Weingarten has set aside for a phase two.

Deer Springs Town Center - North Las Vegas
Regency Centers (NYSE: REG ) broke ground on Deer Springs Town Center on March 4th at North Fifth Street and the 215 Beltway in North Las Vegas. The 700,000-square-foot project will open mid-March 2009. Anchors include Target, Home Depot, Babies R Us, PetSmart, Ross Dress For Less and Staples. The $124 million project is being built to meet LEED silver certification.

Orchard Town Center - Westminster, CO
Forest City Enterprises (NYSE: FCEA ) is celebrating the grand opening of Orchard Town Center on April 3rd. The 983,000-square-foot lifestyle center is located at the intersection of I-25 and 144th Avenue in Westminster, CO. Anchors include Macy's, JC Penney, AMC Theatres and Super Target.

Estrella Falls Power Center - Goodyear, AZ
Westcor, a subsidiary of Macerich, is under construction on The Market at Estrella Falls, a 500,000-square-foot power center in Goodyear, Arizona near Pebblecreek/Estrella Parkways and Interstate 10. The center is scheduled to open this fall. Tenants on the roster include Old Navy, Bashas', TJ Maxx's HomeGoods, La-Z-Boy, PETCO, Razmataz, Shoe Pavilion and Staples. The center is part of the 2 million square feet of retail space that will make up the urban core of the Estrella Falls master planned development. Westcor will also develop a larger super regional shopping center at Estrella Falls that is scheduled for a fall 2010 opening (this was pushed off by about a year), with anchors including Dillard's and Harkins Theatres.

Prairie Cente - Brighton, CO
THF Realty has begun pre-leasing phase two of its $500 million Prairie Center mixed use development in Brighton, Colorado, a northeast suburb of Denver. The 275,000-square-foot phase two is a power center to be anchored by JC Penney, which will start construction this summer and be complete in spring 2009.

THF has already put 535,000 square feet in place at the first phase of Prairie Center, this portion will eventually be a 950,000-square-foot power center / lifestyle center combination anchored by Super Target (already open), Home Depot (already open), Kohl's (already open), Dick's Sporting Goods (opening summer 2008), and Michaels (opening fall 2008).

THF is in the planning stages on Prairie Center phases three and four, which will bring another 600,000 square feet of retail, dining and entertainment space to the massive master-planned community; which will also eventually be home to 4,500 residences and a medical office park.

The Gardens of Havana - Aurora, CO
The Buckingham Square Mall in Aurora, CO has been demolished and construction started last month on The Gardens of Havana, a $110 million, 900,000-square-foot, open-air, retail and residential mixed-use redevelopment project. Built in 1971, the mall was productive until the late '90s, when vacancy became very high. According to CoStar, Weingarten is the leasing agent for the mall, which is owned by MD Management of Overland Park, KS.

Please, share with me any comments you might have in response to this article, or the CoStar Advisor newsletter in general. Relevant comments emailed to Senior Editor Sasha Pardy at will be added as updates.


Sunrise Village - Puyallup, WA
Tarragon is scheduled to open Sunrise Village, located at 157th Ave East and Median Ave in Puyallup, WA (a suburb of Tacoma) next fall. The 550,000-square-foot, $120-million shopping center recently broke ground on a 65-acre site and will eventually be home to Target, LA Fitness, Staples, PetSmart, Famous Footwear, and more.

Santa Monica Place - Santa Monica, CA
Macerich broke ground in March on the redevelopment of one of its first malls in its hometown. The current Santa Monica Place is a 553,000-square-foot enclosed, Macy's-anchored mall near Third Street in Santa Monica's downtown. Macerich is taking the roof off the center of the mall to create a seamless connection with Third Street. Along with new facades, the mall will include open-air walkways, a rooftop dining deck, a central gathering space, art installations, and a children's play area. Macerich's plan reuses the same footprint and actually results in slightly less retail space. Macy's will be the only retailer that will remain open during the redevelopment. Re-opening is scheduled for fall 2009.

(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at> Also, click hereto subscribe to CoStar's dedicated Retail RSS Feed.


David Lobaugh, President of August Partners writes:
"The stats you cite underscore what we talked about last week in "Malls: A Dying Breed? Don't Bet on It". The play is in revitalizing existing assets. That strategy doesn’t fit the business model for most of the companies in our industry, but it doesn’t change the fact that we have a nationwide inventory where at least two-thirds (probably more) of our malls are older than 30 years. That, in my opinion, is where the opportunities lie, and eventually, the REITs/owners/developers will become focused on organic growth (as General Growth Properties has stated).
We don’t need more space. We need better space. In a recent consumer survey we ran among 1,400+ consumers in an affluent market area (avg. HH income of respondents was $141,000), they reported making 15% of their apparel and accessories purchases online. National stats from comScore show a “ratcheting” effect, in which online retail spending peaks in the fourth quarter each year and then goes on to rise another 22%-24% overall the next year. Why? Online, in some ways, is a better shopping experience. We need better space."
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