Our CEO, Jocelyn Smith, recently led a roundtable discussion at ICSC Southeast in our hometown of Atlanta, Georgia. We know attendees had lots of choices on which presentation they wanted to sit in on the morning of the roundtables so we’ve decided to recap key parts of Jocelyn’s discussion in a 5-part series #otb.
Part 1 of “Brand It And They Will Come” begins with The Competitive Marketplace of New Development – Your Tenants Have Choices.
Let’s start with the facts:
According to ICSC Quickstats, there are currently 115,622 shopping centers in the U.S. That’s 115,622 options your tenants have to choose where they want to open their next store. Now, here’s where it gets crazy. ICSC Quickstats reports that between 2016-2018:
- Over 15 million SF of outlet centers will open (We’ve seen this growth personally with our client Tanger Outlets who did three grand openings this year alone.)
- 9 existing centers will undergo expansion of over 1.4 million SF (Again, we’ve seen this with another client, Howard Group, who is about to embark on the fifth phase of development for Grand Boulevard in Miramar Beach, Florida.)
- 93% of markets are in an expansion phase
- 3.45 million SF of retail space will be completed by Q4 of 2016. THIS YEAR.
If that didn’t set the stage for how competitive the market is, listen to this. JLL Research reports that within the U.S. there are:
- 50 truly world class high streets and markets
- 200 downtown shopping districts
- 100 luxury/fashion shopping centers
- 200 premium level regional malls
- 75 quality outlet centers
- 150 specialty and resort projects
So basically there are a lot of options for tenants to choose where to open their next store, and a handful of options specific to their needs. Let’s get into those specifics a little more with some other JLL Research:
The above chart outlines the total number of U.S. Retail developments within each classification.
|Here they are ranked by square footage:
||And ranked by total number of centers:
This research should help you understand the competitive marketplace of today when pitching prospective tenants to open a store in your center.
Reaching out to prospects brings us to Part 2 of “Brand It and They Will Come” diving into where your prospects exist online so you can effectively engage with them on their chosen platforms.