Northeast Real Estate Business

MAY 2018

Northeast Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Northeast United States.

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www.REBusinessOnline.com Northeast Real Estate Business • May 2018 • 37 Additional Retail Opportunities: NY: Massena | Southampton PA: Bloomsburg | Enola | Old York New Town Shops on Main Williamsburg, VA 1,062 to 8,000 SF Available; Prime Restaurant Space Also Available • 253,000 SF center on Monticello Ave in the heart of a 365-acre mixed-use community near the College of William & Mary • Join Barnes & Noble, Jo-Ann Fabrics, American Family Fitness, Buffalo Wild Wings, Bonefish Grill, Regal Cinemas, Plow & Hearth, Victoria's Secret, Opus 9 Steakhouse, Panera Bread, and First Watch Addison Village Glastonbury, CT 3,662 SF Available • 12,900 SF community center featuring Elite Karate, United Bank, Ming Bao Chinese Restaurant, and Berkins Blend Café • Located on Hebron Avew (Route 94) and Village Place just off Routes 2, 3 and 17 in Hartford County • Close proximity to Pratt and Whitney, Hartford Brainard Airport and Manchester Community Tech College Cross Pointe Centre Jacksonville, NC 1,800 to 2,700 SF Available • 196,214 SF power center • Join Marshalls, Shoe Carnival, Lane Bryant, Ashley Furniture, 2nd & Charles, Old Navy, Michaels, Carter's, Soffe, and more • Located on Western Blvd in Onslow County near Jacksonville Mall, Camp Lejeune and Coastal Carolina Community College Roses Plaza Elizabeth City, NC Out Parcel Pad Available • 95,500 SF center featuring Roses, OfficeMax and Citi Trends • Located at the intersection of Halstead Blvd (Rt 344) and Ehringhause St (Rt 17) in Pasquotank County • Adjacent to Big Lots and Southgate Mall; near College of the Albemarle and Elizabeth City State University Stop & Shop Plaza Canaan, CT 1,800 SF Available • 71,000 SF neighborhood center anchored by Super Stop & Shop, Stateline Liquors and Family Dollar • Located at the intersection of Main St (Rt 44) and Railroad St (Rt 7) in affluent Litchfield County • Situated at the northwest corner of CT, bounded on the north by Berkshire County in MA and on the east by Dutchess and Columbia Counties in NY 1224 Mill St, Building D-Suite 103, East Berlin, CT 06023 860.561.0121 www.developers-realty.com Contact: Kelly Voss kelly@developers-realty.com DRC RETAIL AVAILABILITIES VISIT US AT BOOTH S403 Q STREET AT ICSC RECON 2018 LAS VEGAS. from dense urban markets within eight states, according to Cushman & Wakefield. As challenging as online grocery services are to operate under the best of circumstances, the relative lack of infrastructure in rural areas could mean e-groceries never take off outside of larger cities. However, Walmart — which operates mainly in suburban and rural areas — recently expanded its online grocery ordering to 100 cities in the U.S. The company has pushed more into urban areas through its acquisition of jet.com and the announcement it will offer same- day grocery delivery in New York City. "Our foot is on the gas with deliv- ery," says company spokesperson Molly Blakeman. "We're being very deliberate in the selection of where we are placing delivery as it's more about where you deliver to rather than where you deliver from. By offer- ing delivery in these 100 metro areas, we'll be able to deliver fresh, quality groceries to the doorsteps of 40 per- cent of U.S. households." Blakeman emphasizes that Walmart is utilizing its considerable existing infrastructure — roughly 4,700 stores across the country — which can serve as fulfillment centers. The company has built an app and website and trained associates to fulfill orders. It is utilizing third-party delivery provid- ers as well, including Instacart, which can lend expertise to the process. Currently, Walmart's online custom- ers must order at least $30 worth of goods and pay an additional delivery fee of $9.95 per purchase. Walmart is also adding 1,000 more online grocery pickup points this year in addition to the 1,200 it already has. "Just like anything Walmart does, we work to find efficiencies and lever- age our size and scale to provide the best service possible," Blakeman says. Meanwhile, Instacart is in an in- teresting position. Whole Foods had invested in the same-day grocery delivery service provider prior to its acquisition by Amazon, though Con- well notes that the company's stake in Instacart is a "very small one." But Instacart is now becoming a delivery competitor of Amazon when it comes to groceries, linking up with several competing chains including Kroger and Aldi. Following Amazon's ac- quisition of Whole Foods, other lead- ing grocery companies quickly began showing greater interest in Instacart. The service has now signed deals with the top five U.S. grocers, expanded its relationship with Costco, and part- nered with Loblaw, the largest grocery chain in Canada. Earlier this year, In- stacart raised another $200 million in funding. "Instacart had been the prime ser- vice for both in-store pick-up order prep and delivery at Whole Foods, only to find that customer and inves- tor acquired by the leading online op- erator," says Conwell. "No question that Instacart continues to grow ag- gressively through entering new mar- kets and adding retailers it serves. The space it operates in is a white hot one with many providers seeking to build enough scale to avoid losing money on each order." Future Moves Should retailers find success with their e-grocery pickup and deliv- ery platforms, a related question is how it could af- fect neighboring retailers in grocery- anchored centers. Emil Gullia, vice president of Bir- mingham, Ala- bama-based Retail Specialists, doesn't predict much of a change in the immediate future. "Grocery-anchored retail is the sexi- est thing in retail real estate right now and will remain so through 2020," says Gullia. "This product will remain highly sought after by developers and banks alike." Another retail expert, Levin Man- agement Corp. President Matthew Harding, says increased competition will further separate the grocery sec- tor's leaders from its laggards. "Landlords and lenders are taking a look at proper- ties and under- standing that in the near-term there's not going to be as much space occu- pied by retailers as in the past," Hard- ing says. "Not all grocery-anchored shopping centers are the same. In- creasingly, landlords are looking to land the top grocers at their centers. There's a bigger gap now between a retail center anchored by a leading volume grocer as compared to one that's third- or fourth-tier." A modest side effect of online deliv- ery growth could be a slight reduction in parking requirements as more cus- tomers stop only for a few minutes to have groceries placed into their cars, or simply have groceries delivered. Harding says the traditional standard of five parking spots per 1,000 square feet of floor space could creep down to four spots per 1,000 or lower over time. "For customers, the trip to the shop- ping center still serves the same func- tion," Harding says. "Either way, they're driving to the store and pick- ing up groceries. Then they're driving home afterward with groceries in the car." n At Wall Towne Center in Wall, New Jersey, the recently expanded 71,000-square-foot ShopRite now features larger produce and natural foods departments, as well as a cooking classroom. Emil Gullia Retail Specialists Matthew Harding Levin Management

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