Tuesday, April 21, 2015

Return to RECON: KeyPoint Partners Goes To Vegas

KeyPoint Partners will be an exhibitor at the 2015 International Council of Shopping Centers RECON at the Las Vegas Convention Center on May 17-20 - the largest retail real estate trade show in the world, and one of the largest conventions of any kind in Las Vegas, with over 1,000 exhibitors and an expected 34,000 attendees, according to the ICSC.

It’s been some time since we’ve been an official exhibitor, although we send a sizeable team to the show every year. This year, representatives from our Leasing and Tenant Representation team and our Property Management team will be in attendance. We invite you to meet with them there.

Our exhibit booth will be located in one of the busiest areas of the show, on the Upper Floor of the South Hall at the Convention Center. We’ll be at Booth # S3667, at the corner of R Street and 37th Avenue, directly adjacent to the Ahold USA booth.

What do we have to present to the industry at RECON? Our Extraordinary Commercial Real Estate Services, of course: property and asset management, retail leasing and tenant representation, investment sales, customized retail research (including our proprietary GRIID™, about which you’ve often read in these pages), design and construction, financing, and consulting.

Our Leasing Team will be presenting our current portfolio of Exclusive Leasing Opportunities: more than 60 retail properties throughout New England that total more than 6 million square feet, consisting of street-level urban retail, grocery-anchored and convenience centers, stand-alone properties, mixed use properties, and enclosed malls, including several exciting development and redevelopment opportunities. We’ll also be showcasing several new tenant representation clients with plans for robust expansion throughout our territory.

Our Vegas team will include:
Bob Lemons, Managing Partner and Director of Leasing
Bill Lawler, Partner and Director of Property and Asset Management
Don Mace, Vice President of Leasing
Rob Grady, Vice President of Leasing
Michael Branton, Senior Leasing Associate
Chris Cardoni, Marketing Manager

To make an appointment with any member of our team in Las Vegas, contact Kris Smith at 781.418.6242 or KSmith@KeyPointPartners.com. Or you can visit our website, KeyPointPartners.com, and click on the RECON icon at the top.

If you know us already, we’ll be happy to see you. If you don’t know us yet: we’re KeyPoint Partners, New England’s premier commercial real estate service firm. Clients like you trust us to turn their most pressing commercial real estate services into success stories. We’ll be happy to put you in touch with them, so they can tell you how.

New client or old, in Las Vegas during the ICSC RECON, or here in the heart of our home territory any time: What can we do for you?

National Retail News

Retail sales increased 0.9% in March, according to the Commerce Department, the largest gain since March last year. Among retailers reporting monthly comp-store sales, L Brands was up 9.0%, Gap was up 2.0%, Rite Aid was up 4.3%, and Costco fell 2.0%. See our sales report below.

Company News

New Business: Property Management & Leasing : Wintonbury Mall, Bloomfield, CT. VP of Leasing Don Mace is handling the leasing. Don will also handle Plaistow Place, in Plaistow, NH. Property Management: 101 Constitution Blvd., Franklin, MA; 13 Centennial Drive, Peabody, MA. The Investment Sales Team sold 9 condo units at a medical/wellness building in Hanover, MA. The Team also has two new listings for sale: 1 West Main St., a storeblock in Georgetown, MA; and a freestanding Autozone in Woonsocket, RI. Tenant Rep: Don Mace will represent Rita’s Italian Ice, seeking 30 metro-Boston locations.  Employee News: Lorie Paquette joined the Burlington, MA office as a Property Manager. Lorie has extensive property management experience, most recently at Evergreen Management. Radhika Chitaley has joined the Burlington, MA office as an Assistant Property Manager. Radhika had been a part of the Database Research team.

Accelerating Retail News

Starbucks Corp. plans to open 3,500 locations in its Americas region and 8,000 new stores in foreign markets over the next 5 years. Starbucks is currently at just over 14,000 stores across the Americas...Tiffany plans to open a net of 12-15 new company stores in fiscal 2015...Mattress Firm plans to open 200 to 220 new stores in fiscal 2015...New York & Company expects to open 3 new New York & Company stores, 11-15 new outlet stores, convert 9 New York & Company locations to 9 outlet stores, remodel 8-12 existing stores and close 18-22 stores, ending fiscal 2015 with between 496 and 504 stores, including between 82 and 86 outlet stores...Appliance and outfitting retailer Pirch opened its first Northeast store in Paramus, NJ last month...Ikea will open its largest US store, 456,000 s/f store on a 22-acre site in Burbank, CA in spring 2017...H&M plans to open 400 stores in its current fiscal year in China and the US. In New York, it will open a 61,000 s/f flagship in Herald Square. H&M operated a total of 3,551 stores around the world as of Feb. 28, up from 3,192 a year earlier...Five Below Inc. plans to open 70 stores in 2015, up from 62 in 2014...GameStop plans to open between 350 to 550 stores in its technology brands segment (whose banners include Simply Mac, Cricket and Spring Mobile) while closing about 200, of its 6,000 GameStop video locations in 2015...Investment firm TowerBrook Capital Partners is acquiring women’s apparel retailer J. Jill, which operates some 250 stores nationwide, from Investment firm Arcapita and private equity firm Golden Gate Capital. Terms were not disclosed. The deal is expected to close in second quarter 2015...Smashburger plans to open 75 to 80 restaurants in 2015. Smashburger has 315 units in 33 states and seven foreign countries, including about 180 company-owned locations...Sprouts Farmers Market  plans to open 8 new stores during the third quarter. Sprouts operates 201 stores in 12 states. The company plans to have close to 230 stores...West Marine opened a 20,000 s/f flagship store in Chicago this month, the largest West Marine store in the Midwest. West Marine operates over 270 stores in 38 states...Quebec-based David’s Tea Inc. is looking to boost its US presence. The chain has filed a registration with the U.S. Securities and Exchange Commission for an IPO in which it looks to raise a maximum of $75 million. The company plans to list on the Nasdaq with the ticker symbol "DTEA.” In fiscal 2015, David’s Tea expects to open approximately 25-30 stores in Canada and 10-15 stores in the US...Gigi’s Cupcakes, specialty baked goods franchise, plans to open 25 locations this year. Gigi’s has more than 90 locations in 23 states...Newk’s Eatery is planning franchise growth in new markets Georgia, Florida, Texas, Washington, D.C, Virginia, Indianapolis, St. Louis and Oklahoma City. The chain is seeking multi-unit franchise partners for a growth plan that calls for more than 200 units by 2018, including 30 in 2015...Dave & Buster’s opened 8 new locations in 2014, and is committed to opening 7-8 new units in 2015, with 5 already under construction. Those will skew more to the large-store format of more than 30,000 s/f. Dave & Buster’s has locations in 30 states and Canada...Sprint launched retail operations in 1,435 RadioShack stores, re-branded as Sprint RadioShack. General Wireless Inc., an affiliate of Standard General LP, acquired 1,743 RadioShack stores. Sprint agreed with Standard General to be co-tenants in 1,435 of those stores, with Sprint being the primary brand in marketing materials and signage...Ice cream sandwich concept CREAM will open 30–40 stores in 2015, and could have 150 stores by the end of 2016. CREAM features 10 varieties of cookies and 20 flavors of ice cream...Pet Supplies Plus will open  25 franchise stores over the next year and more than 200 new stores over the next 5 years...Dick’s Sporting Goods will open 135-150 namesake stores during the next 3 years.

Decelerating Retail News

Toys R Us will not renew the lease for its 110,000 s/f flagship store in Times Square. The toy giant plans to vacate by February 2016...Fresh & Easy plans to close 55 stores, which will leave the chain with about 110 locations, the Orange Country Register reported. Fresh & Easy is owned by the Yucaipa Cos., which bought the supermarket chain out of bankruptcy in 2013 from UK retailer Tesco...Aldi U.S. announced that fewer than half of the 66 Bottom Dollar stores it acquired from Delhaize will reopen as Aldi stores. Aldi said it intends to reopen 30 sites — most in Southern New Jersey and greater Philadelphia area — and seek a sale or sublease for 36 other stores. All of the sites operated as Bottom Dollar discount stores until they closed earlier this year...Jamba Juice owner Jamba Inc. plans to sell about 40% of its company-owned stores to a franchisee group.The company will sell 100 of its company-owned outlets in California for $36 million in cash to Vitaligent LLC...Walgreens will close about 200 less-profitable US Walgreens stores and open the same number of stores in new locations. No hard timeline has been set for the store closings and the list of stores slated to close is still being finalized...Pier 1 Imports will close about 100 stores over the next three years. Pier 1 will take advantage of lease expirations to reduce costs and has already identified about 100 stores. A list was not released. Within three years the company expects to operate just under 1,000 stores...On the heels of a similar deal with landlord General Growth Properties, Sears Holdings Corp. has formed a joint venture with Simon to own and manage 10 Sears anchor stores at Simon malls. Sears Holdings has contributed the 10 properties located at Simon malls to the joint venture, including property leased to outside parties. Simon has contributed $114 million to the venture, and plans to redevelop the properties and and re-lease space at each property to third-party tenants. The transaction values the 10 Sears stores at $228 million in total.

New England Retail News

Smashburger will open its second New England location at University Station in Westwood, MA. Smashburger has over 300 US restaurants...Frank Pepe Pizzeria Napoletana will open in The Mall at Chestnut Hill in the space last occupied by Papa Razzi...Life Time Athletic will open its first sports/fitness/recreation/spa location in the Boston area, Life Time Athletic Westwood at University Station in Westwood, MA with a planned summer 2015 opening. Life Time operates 114 centers under the Life Time Fitness and Life Time Athletic brands in the US and Canada...Bloomingdale’s will open a 150,000 s/f, three-level location in fall 2018 in a new shopping, dining and entertainment center in Norwalk, CT by General Growth Properties. Norwalk will be the 41st Bloomingdale’s location...Italian restaurant Osteria Nino will open in April in the 3rd Ave Burlington (MA) development...Freshii, purveyor of rice bowls, wraps and burritos, is expanding to the Back Bay. The chain, which already has locations on Federal Street and at Channel Center in South Boston, will open this month at 185 Dartmouth St. Freshii has more than 160 locations globally...Boston Marathon Run Base, 2,000 s/f shop operated by Adidas and the Boston Athletic Association (B.A.A.), in partnership with Marathon Sports, will open in mid-April on Boylston Street in Boston. The store will sell Adidas footwear along with seasonal and official marathon apparel and accessories, and feature exhibits and historic photos from the past 119 years of the competition, including race bibs, medals, trophies and jackets. Adidas currently operates 6 RunBase stores around the globe. Boston is the first US site; several additional locations are in the works...Roche Bros opens this month in the former Filene’s building on Summer Street in Boston’s Downtown Crossing. The 25,000 s/f, two-level store will be the 21st for the grocery chain.

March Retail Sales Report

Notes: figures gathered from individual company websites, press releases, and Federal filings.  Not all companies report all figures; results not reported will be marked “n/r”. Quarterly results will be updated when available; quarterly figures are shown in italics. Figures from companies not calculated to one decimal point automatically received an ending digit of 0. 

Commerce Department Monthly Sales

The Commerce Department said US retail sales increased 0.9%. That was the largest gain since March last year and snapped three straight months of declines blamed on harsh winter weather. Retail sales excluding automobiles, gasoline, building materials and food services rose 0.3%.

Source: U.S. Department of Commerce - commerce.gov

Treasury Yields

Treasury Yield Sources:  federalreserve.gov; ustreas.gov

Consumer Confidence Index

The Conference Board Consumer Confidence Index®, which had decreased in February, improved in March. The Index now stands at 101.3 (1985=100), up from 98.8 in February. The Expectations Index increased from 90.0 last month to 96.0 in March. The Present Situation Index, however, decreased from 112.1 in February to 109.1.

Source: The Conference Board - www.conference-board.org

Purchasing Managers Index

Manufacturing expanded in March as the PMI® registered 51.5 percent, a decrease of 1.4 percentage points when compared to February’s reading of 52.9 percent, indicating growth in manufacturing for the 27th consecutive month. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

Source: Institute for Supply Management - Manufacturing Report on Business - www.ism.ws