Spring 2022 Retail Space Guide

Spr i n g 2 0 2 2 • w w w. re j ou r n a l s . c om

IT ALL ADDS UP TO SUCCESS!

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CHARLES PLAZA: Lou Malnati’s Pizzeria, Starbucks, Subway, Sport Clips, Olmstead Cleaners, Caring Smiles Dental, Tiger Koo Martial Arts, Paris Nails, Sullivan-Ostoich Eye Center, Elite Tutoring Place, North Hoffman Vet Clinic, Peppo’s Pets, Mochidou, Orange Theory Fitness, CBD Kratom, May’s Lounge, Sarap Bistro.

PALATINE PLAZA: Mutual Ace Hardware, D’Vine Wine & Gifts, In Style Hair Studio, JP Woods Taekwondo, Byhring Jewelers, Sherwin Williams, Home of the Sparrow, Fannie May Candies, Brown’s Chicken and Pasta, The Exercise Coach, Dairy Queen, Hearing Care of Palatine, Citibank, Pete & Mac’s Pet Resort, Dollar Tree, ER Elderwerks, Alpha TA O 2 8 4 CE Japanese 2 V IC Carpet, Modun Amita Planet Fitness.

RANTHealth, RY 302,53 Restaurant, U 82, ES 70,96 S LEXINGTON SQUARE: Ebel’s Ace Hardware, Great Clips, Yoga By Degrees, Fresh Start Cafe, Domino’s Pizza, Subway, Emperor’s Kitchen, Oberweis Dairy.

ELMHURST PLAZA: K.E.Meridian Salon, Elmhurst Shoe Repair, Jewel/Osco, CBD Kratom, Focus Nutrition, Sydney Nails, DiLeo’s Pizza, Old Havana Cigar Shop, Dunkin Donuts, Executive Dry Cleaners, The UPS Store.

RIVER WEST PLAZA: Pitaville, Great Clips, Drippy Smoke Shop, FastSigns of Naperville, Spice Mart, Thorntons, Goodyear/Acorn Tire, Paramount Staffing, ATI Physical Therapy.

BOONE CREEK PLAZA: I-HOP, Discount Cigarette & Cigar Center, Jewel/Osco.

NAPER RIDGE PLAZA: Office Depot, Fifth Third Bank.

IT Petco, Krystal ETCORNERS: Savers, PE Pho Royal, COUNTRY Great Clips, S NE F LT Nails & Spa, A IL T S 3 S Thai, 0 S 2 S 2 3 5 S 8 , 3 4 , 130Presotea, 51 Commercial 5,8 Mug’s Pizza & Ribs, Tower Baird & Warner, Weight Watchers, Construction, Dollar Tree, Breaking Bread, Kloud Vapor.

NORTH TOWN PLAZA: Jersey Mike’s Subs, US Bank, Smallcakes Cupcakes, Creamery and Novelties, Elite Tutoring Place, Verizon Wireless, Art & Frame, Service Nails, The UPS Store, Athletico Physical Therapy, Pella Products, Batteries + Bulbs, J’s Kitchen, Master Cuts.

PRESTWICKE PLAZA Armanetti’s Liquors, Prestwicke Dental Care, Iron Horse Bar & Grill, China Bistro, Roll N’ Donut Cafe & Douangchay’s Kitchen , Your Best Friend’s TH Nails, Your, Best Friend’s Home, M Closet, CAMP ChiroTherapy, Gold Liquidators, Leon’s 6 PR 9 & B& CBD Plus, OVEMENT Signature Vape Domino’s Pizza, Team Rehabilitation, EAUT Y 3 Guaranteed Rate.

STONY CREEK: Randall’s Pancake House, Miracle Ear, Lacey’s Place, Starship Travel, Victoria Nails, Cross Kicks Fitness, Girl Scouts of Northern Illinois, Dr. Faklaris DDS, Hair HIGHLAND Cuttery, Liz Dry Cleaners, Louie Angelo’s Fast Casual Italian, Foot Retreat, Anderson MANAGEMENT Humane, Richard’s Fine Jewelry, Crumbl Cookies, State Farm Janese, Outback ASSOCIATES, INC. Steakhouse.

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S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

FEATURES UPSCALE MEXICAN TAQUERA EXPANDS WITH THE HELP OF EXPERT REPRESENTATION CATON COMMERCIAL Eddie Palacios

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THE BOULDER GROUP NETLEASE MARKET REPORT

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SPRING 2022 METRO CHICAGO RETAIL SPACE GUIDE

Michigan Avenue retail corridor has no choice but to reimagine itself.

was introduced to brothers Fernando and Temoc six years ago when they were operating the first Cilantro location and had a second site under contract.

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10 WAYS TO ENSURE THE LONG-TERM HEALTH OF MICHIGAN AVENUE Chicago’s

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OMNICHANNEL AND METAVERSE: THE FUTURE OF RETAIL? Retail is

constantly evolving, and businesses have to remain agile to meet the everchanging demands of collective consumerism.

RETAIL INVESTORS AGAIN SHOPPING FOR DEALS ACROSS CHICAGO METRO The reports

on the death of the retail sector appear to have been greatly exaggerated.

The Metro-Chicago Retail Space Guide

is published twice a year by the Real Estate Publishing Corporation, 1010 Lake St Suite 210, Oak Park, IL 60301 • 312.933.8559 • www.rejournals.com Publisher: Mark Menzies • menzies@rejournals.com Senior Account Executives Ernest Abood, Vice President/MW Conf Series Director • eabood@rejournals.com Marianne Grierson, Vice President of Sales • mgrierson@rejournals.com Frank Biondo, Vice President of Sales, fbiondo@rejournals.com Copyright © 2022 by Real Estate Publishing Corporation. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by an information storage and retrieval system.

NATIONWIDE RETAIL INVESTMENT SALES

STABILIZED MULTI-TENANT | VALUE-ADD MULTI-TENANT | SINGLE- TENANT

Southport Plaza Kenosha, WI | 485,327 SF

Valley View Shopping Center Pittsfield Township, MI | 417,870 SF

Arborland Center Ann Arbor, MI | 403,536 SF

Bay Valley Shopping Center Saginaw, MI | 332,161 SF

High Ridge Center Racine, WI | 264,560 SF

Forum at Gateways Madison Heights, MI | 258,105 SF

Dresner Walgreens Portfolio Various Locations | 248,427 SF

Hickory Grove Shopping Center Cleveland, TN | 236,709 SF

VALUATION | REPOSITIONING AUCTIONS CAPITAL MARKETS – LOAN SOURCING/RE-FINANCE RECEIVERSHIP & PROPERTY MANAGEMENT | DUE DILIGENCE

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Genesee Crossing Flint Township, MI | 220,781 SF

Orchard Plaza Byron Center, MI | 191,438 SF

INFO@FREG.COM

Airport Square Toledo, OH | 187,282 SF

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888.848.1671

Citi Centre Winter Haven, FL | 185,705 SF

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FRIEDMANREALESTATE.COM

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

Upscale Mexican Taquera Expands with the Help of Expert Representation

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aton Commercial Real Estate senior broker, Eddie Palacios, began his career in commercial real estate twenty-three years ago. He quickly developed a unique approach to the business. Eddie walked into businesses and plied owners with questions to learn about their business models. He learned to better differentiate stagnant or stabilized businesses from the ones in growth mode, or with growth potential.

Tenant representation is akin to the role of an outof-house real estate director. Developing this area of expertise, and taking this specialized approach to his brokerage business, has served Eddie well over the years. His understanding of business models helps him treat client businesses as if he were an owner and a partner. Clients know that he’s looking out for their best interests as he studies demographic models and competition maps as it relates to their business plans, ideal client and objectives in order to help them find the right location. He makes sure the economics of every deal work, even if at times that means talking clients out of deals that don’t work. His forthright nature has cultivated incredible loyalty from his clients.

His Dunkin’ clients have been with him for fifteen years, 43 deals, and plenty of family get-togethers and weddings.

Eddie was introduced to brothers Fernando and Temoc six years ago when they were operating the first Cilantro location and had a second site under contract. Their story is the American dream – a talented immigrant family who have dedicated their collective genius to growing a successful restaurant chain. The brothers lead the company, their sisters create recipes, and all thirteen family members work in the family business. Eddie helps them identify the right real estate so they can focus on operating their business – which has exploded.

LOCATION AND ADAPTATION Oak Brook Mall ownership reached out to Eddie when they heard he was representing a new concept, Cilantro. He worked with the brothers to create a strong marketing plan and pitch deck, and mall ownership was interested.

The Oak Brook mall location has been a resounding success, one of several stars in their portfolio of thirteen locations throughout the city and suburbs. As the concept expanded into new locations,

Eddie Palacios

product consistency became a priority. Cilantro created a commissary kitchen and established routes for daily deliveries of freshly prepared ingredients for their upscale Mexican taqueria menu. Their dedication to quality spurred the creation of Cilantro Tortilla Factory.

The tortilla factory in Stone Park allows visitors to stop by and watch the tortilla-making process through windows into their state-of-the-art kitchen. Though originally outfitted with a conference room and corporate offices, they quickly realized the better use for the space was serving the visitors the great tortillas they were viewing as part of an exclusive “tortilla factory only” menu.

Eddie speaks of the family with great admiration.

“They are always looking and planning ahead for opportunities to make their customers happy (and more full!). They are not afraid to try something different to make their product and brand better.

That is the best description of an entrepreneur.”

During the pandemic, their foresight in creating a product line allowed Cilantro to grow their distribution arm when the physical restaurants were slow. The factory produced millions of tortillas for other restaurants. Their products are in 400 grocery stores now. The brand has become recognizable and they continue to work on different products and test new ideas.

Temoc Morfin

Eddie frequently receives calls soliciting Cilantro for new locations. Some owners and industry professionals understand Cilantro’s business success.

Others soon discover that Cilantro’s leadership is sophisticated and well-capitalized, with a highly diversified business model. Cilantro’s Mexican comfort food has transcended to areas like Lincoln Park (the store there in an old Chipotle has become a very successful neighborhood staple).

For Eddie, Cilantro is a shining example of how his services have helped a restaurant move into their full potential. He acknowledges that restaurants are a high risk, high reward business. As restaurant expansions came to an abrupt halt during COVID, Eddie’s pulse on the industry became even more important as he listened to success tactics presented by clients and industry leaders and shared the knowledge with all his clients. If there is one thing Eddie is certain of, it is that the future holds every opportunity for success – for Cilantro and all of us.

------------Caton Commercial Real Estate Group uses its corporate experience and professional networks to find innovative solutions and opportunities that position clients for success. Strong community ties and relationships help foster a client-driven approach to business. Caton Commercial offers a full range of client services, including property disposition, investment sales, leasing, tenant representation, and property management.

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Retail Investors Again Shopping for Deals Across Chicago Metro

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he reports on the death of the retail sector appear to have been greatly exaggerated.

While the shutdown ended up being permanent for some retailers, it in many ways accelerated evolutionary trends that were already underway and, ultimately, will help retail real estate evolve and deliver strong returns for investors, according to Marcus & Millichap’s 2022 National Retail Investment Forecast.

Even when accounting for inflation, consumers are spending more today than they did before the pandemic. And it’s not being driven exclusively by e-commerce – physical store-based retail sales currently stand more than 13% higher than they were in 2019. What’s more, store openings outnumbered closures in 2021 and the vacancy rate is projected to realign with the preCOVID measure by the end of 2022, according to the report.

“This year and last will each record net absorption of more than 2 million square feet in the Chicago area, the largest year-end figures since 2017.”

What has reinvigorated investor interest in the retail sector and how is this playing out in the Chicago market? Sean Sharko and Austin Weisenbeck, senior vice presidents of investments in Marcus & Millichap’s Chicago Oak Brook office, addressed retail’s resilience and provided insights into trends they are seeing locally in a recent Q&A:

Compared to prior to the pandemic, how much has the retail industry recovered to this point across the Chicago metro?

Sharko: There has been an incredibly strong rebound here. This year and last will each record net absorption of more than 2 million square feet in the Chicago area, the largest year-end

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S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E figures since 2017. Much like what we saw with the Great Recession, whenever there has been a disruption, it’s normal to see investors move to the sidelines and hoard cash, which happened again with COVID-19. Confidence began to rebound with the rollout of vaccines, and then we quickly saw investors return and look for opportunities to deploy that capital.

Like investors, a lot of tenants hit the pause button and stopped signing leases at the start of the pandemic, as the pace of new construction significantly slowed. This lack of new product has continued due to high construction costs, so tenants have instead gravitated to existing spaces they can retrofit to meet their needs. Because investment activity recovered faster than construction, we’ve seen a supply and demand imbalance, which has led to a compression in cap rates. Overall, suburban retail has recovered more quickly than in the city.

Are retail properties trading at similar rates as before the pandemic?

Weisenbeck: The average asset is trading around 25 basis points better than pre-pandemic levels, driven heavily by supply and demand fundamentals. We still had historically low interest rates coming out of the pandemic, and while that’s starting to change, investors see an opportunity to capitalize on the retail sector’s resurgence, driving up competition – and pricing – for assets that either have creditworthy tenants in place or are strong candidates for repositioning.

Why has recovery been faster in the suburbs?

Sharko: Despite the stability afforded by inner-city fundamentals, investors have been favoring areas outside the core due to outmigration driven in part by the shift to remote and hybrid work schedules, but also by millennials who have long planned to relocate to the suburbs as they start families. High-street retail, like Chicago’s Magnificent Mile, really took it on the chin during the pandemic, as evidenced by the struggles encountered by Water Tower Place and other high-profile properties that have struggled to reinvent themselves.

We are seeing tenants target strong suburban locations – often near transit and other amenities – due to the population shift into those areas.

This, in turn, is drawing interest from investors, who are focused on predictability of income.

Sean Sharko

What types of retail product are investors particularly interested in right now?

Weisenbeck: One of the trends coming out of the pandemic has been a noticeable increase in investor demand for multi-tenant B and C properties, which typically trade below replacement costs. A draw of these B and C centers is their relatively inexpensive rents compared to newer construction. By acquiring them at a lower basis, investors are able to make capital improvements that translate to higher rents, sometimes with new tenants. And not all of them are traditional retailers – we’re seeing vacancies filled by chiropractic offices, physical therapy clinics, dispensaries and other users in search of high-traffic, high-visibility locations.

Single-tenant retail is considered a much safer play, especially when there’s a long-term lease with an investment-grade tenant in place. We are seeing especially high demand for healthcare clinics and fast-food restaurants, due in large part to them remaining operational throughout much of the pandemic. Now that the vaccine is out and being widely accepted, assets such as daycare centers and gyms have seen a resurgence in investor interest as well.

Who is investing and how has the investor pool changed over the past two years?

Sharko: Chicago is still seen as a stable market with pricing that is better than that of the coasts.

The migration of capital into the area continues with money coming in from all over the country and even internationally. With interest rates still relatively low, we’ve also seen the emergence of new types of investors such as small groups of

Austin_Weisenbeck

families and friends who are forming LLCs and pooling capital or using crowdfunding sources to purchase assets.

There’s been a lot of chatter around the demise of shopping malls. What does the immediate future hold for Chicago-area malls?

Weisenbeck: The Chicago-area malls are still prime real estate and are ripe for redevelopment, often through the introduction of more experiential concepts, as well as new multifamily and hospitality offerings. Some vacancies are also being filled by medical clinics, fitness centers, grocery stores and other uses that drive more visits and add convenience for the center’s built-in resident base. Municipalities today are much more open to a diverse mix of uses that, together, keep these centers viable and major contributors to the local tax base. Their success also has a positive effect on smaller neighboring retail properties that might otherwise struggle.

One simply has to look at a property like Oakbrook Center – to say they are crushing it would be an understatement. They’ve found ways to add value by developing outparcels and reconfiguring parking lots to accommodate new retailers like Shake Shack and Life Time Fitness or relocate existing tenants like Restoration Hardware. It’s truly become more of a lifestyle center with new restaurants, a movie theater, full-service gym that just opened, and entertainment destinations Pinstripes and Puttshack.

They are thinking outside the box, and it’s paid off.

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10 Ways to Ensure the Long-Term Health of Michigan Avenue

By Kelly Nickele, Senior Associate, Mid-America Real Estate Corporation

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hicago’s Michigan Avenue retail corridor has no choice but to reimagine itself.

Retail vacancy is the highest it has been in decades, many companies are adjusting to remote and hybrid work schedules, and crime has threatened what was once the truly “Magnificent” Mile, all exacerbated by the coronavirus pandemic. Now more than ever, the question is, “How do we resurrect this world-class retail district?”

1. Address Crime and Safety; Improve Perception of City “Without a more concerted effort to reduce actual crime and the perception of it, any revitalization strategies are not likely to have a significant impact,” says a 2021 Urban Land Institute Technical Assistance Panel Report.

Chicago is the number two city affected by Organized Retail Crime. Despite an increased police presence from the City of Chicago and retailers ramping up security measures, Organized Retail Crime has increased by 60% in the last five years and cost Illinois retailers $4 billion in losses in 2020, according to CPD Data and the National Retail Federation. In a 2021 National Retail Security Survey, 78% of respondents feel a federal Organized Retail Crime law is necessary to combat such theft and ensure public safety, ultimately creating a more positive shopping experience for customers.

2. Return to Downtown Chicago Offices In 2020, the number of people working from home nearly doubled to 42% of America’s workforce, according to the Bureau of Labor Statistics. Today, office occupancy in large U.S. cities like Chicago is still approximately one-third of pre-pandemic levels, impacting the heavily relied upon economic activity from commuting, morning coffees, team lunches, and after work happy hours. A return to downtown Chicago offices and its associated spending is essential to revitalizing Michigan Avenue.

3. Restore Leisure Travel: Domestic & International “The 8 states closest to Illinois typically account for 70% of leisure travel to the city,” says former Choose Chicago CEO, David Whitaker. According to the U.S. Travel Association, domestic travel spending dropped from $972 billion in 2019 to $642 billion in 2020, and international travel spending dropped from $233 billion in 2019 to $83 billion in 2020. Michigan Avenue needs the rebound of domestic and international travel to fully rebuild.

4. Restore Business Travel: Trade Shows and Conventions “The economic engine of Chicago’s tourism industry, McCormick Place was hard-hit by the pandemic, with more than 230 event cancellations costing the city about 3.4 million attendees and nearly $3.1 billion in economic impact. McCormick Place has 176 events on the calendar this year and projects nearly $1.9 billion in economic impact for the city,” according to the Chicago Tribune. The return of the trade show and convention traffic in Chicago is key to restoring Michigan Avenue’s retail, restaurant, and hotel business.

5. Rebuild the Hotel Industry The average occupancy rate for downtown Chicago hotels was 74% in 2019, 27% in 2020, and 43% in 2021, according to Statista, with trade show and convention attendees typically accounting for 20% of bookings, says city tourism arm Choose Chicago. To rebuild the hotel industry, we first need to restore leisure and business travel.

6. Integrate More Food & Beverage into Struggling Vertical Malls Retail sales increase as much as 25% at malls with quality food and beverage options, and shoppers eating at the mall spend more than 15% more each trip, says JLL. With major Michigan Avenue malls Water Tower Place and The Shops at North Bridge faced with large vacancies, integrating high-end dining options may be part of the solution.

7. Respond to Tenant Demand, Part 1: Demise Multi-Level Flagships to Deliver Small Shop Ground Floor Opportunities Well before the pandemic, Best Buy, Gap, Topshop, and Macy’s flagship Michigan Avenue closures were planned. Not only are these brands

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S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E older and less relevant, but they were also situated in oversized flagship spaces. Simultaneously, many retailers were already reevaluating their real estate footprints and overall brick-andmortar strategy, ultimately preparing to shutter underperforming stores, downsize existing stores, and open new smaller format locations.

To start chipping away at these large multi-level flagships along the Mile, Michigan Avenue landlords must respond to tenant demand for small shop ground floor space.

8. Respond to Tenant Demand, Part 2: Target Large Experiential Retail Concepts for Upper Floors Part two of the above recommended approach is solving for the upper floors. Given a lack of street presence/walk-by traffic and the sheer size of the floor plates, upper floors can be challenging for traditional retailers to make sense of.

Targeting more destination-oriented concepts is the logical answer, like experiential retail concepts that are ticketed experiences, and sought out by customers ahead of time, eliminating the need for a prominent ground floor presence along Michigan Avenue. Many also have larger square footage requirements. Furthermore, with the highest value budgeted for Michigan Avenue fronting ground floor space, retailers can benefit from a more tenant friendly economic deal on upper floors or being right off the Avenue.

For example, the Museum of Ice Cream recently signed a long-term deal for 13,500 SF on the backend of the Tribune Tower redevelopment at 435 N. Michigan Avenue, with no frontage along Michigan Avenue. The concept will still benefit from being situated within the Michigan Avenue retail corridor, but on more agreeable terms.

9. Capitalize on the Booming Luxury Industry While many retail segments are struggling with the post-pandemic world, the opposite is true for the luxury industry. “The market for personal luxury goods – the core of the core of luxury segments and the focus of this analysis – has come roaring back, experiencing a V-shaped recovery in 2021. After a sharp contraction in 2020, personal luxury goods sales are set to beat their pre-Covid record, with the market forecast to grow by 29% at current exchange rates to hit $283 billion, likely finishing the year (2021) up 1% from its 2019 record,” according to Bain & Company.

“Michigan Avenue has history, beauty and prestige. It long has been the great showcase of the Midwest.”

From a category level, personal luxury goods including accessories and jewelry grew by 8% and 7% over 2019, respectively, and watches rebounded to their 2019 valuation of $40 billion.

At the same time, growth in the secondhand luxury market soared to $33 billion in 2021.

There has been a direct correlation to the success of the luxury industry along Michigan Avenue, with some of the most recent deals completed in the trade area falling within the above referenced categories. Luxury consignment shop The Real Real opened in 12,000 SF at 940 N. Michigan Avenue, bags/leather goods, accessories, and jewelry fashion house Louis Vuitton completed an expansion at 919 N. Michigan Avenue, and Swiss watchmakers, Brietling and Rolex, opened at 919 N. Michigan Avenue and 701 N. Michigan Avenue.

Landlords and their leasing representation can capitalize on the booming luxury industry and the above merchandising mix established on the northern end of the trade area to attract like brands.

10.Favorable/Creative Lease Structures The Michigan Avenue retail corridor and its rental rates peaked in 2016 with Sephora and Ulta Beauty signing flagship deals on the street.

Over the past six years, overall tenant demand on the Avenue has plummeted, and for the small pool of tenants with Michigan Avenue requirements, landlords have been hesitant to lock in economics below their underwriting, and what they perceive as below market. From a tenant perspective, they’re aware of the lack of demand on the street, and this is further worsened by the amount of vacancy seen when they tour the

Kelly Nickele

Avenue. There is a disconnect between tenant and landlord market expectations, and a middle ground needs to be established to move the corridor in the right direction. With tenants having more leverage than ever, landlords accommodating favorable/creative lease structures are vital to bringing Michigan Avenue back.

“Michigan Avenue has history, beauty and prestige. It long has been the great showcase of the Midwest. Chicago cannot let it forfeit that crown,” says a recent Chicago Tribune editorial.

Restoring the history, beauty and prestige of the once Magnificent Mile and ultimately ensuring the long-term health of the retail corridor requires a collaborative approach between the city, major employers, the hospitality industry, tenants and landlords. One step at a time, starting with addressing crime and improving the perception of the city, we can again reimagine the heart of Chicago, North Michigan Avenue.

Kelly Nickele is a Senior Associate at Mid-America Real Estate Corporation under the leadership of Greg Bayer and Lara Keene. Kelly specializes in Urban Product Leasing and Tenant Representation. Having grown up in downtown Chicago, Kelly has a deep understanding of the urban retail landscape and the intricacies of each market and its consumers. She has a vast knowledge of the beauty/cosmetics, home, and fashion industries including luxury, contemporary, and digitally native brands emerging into brick-and-mortar.

Kelly is a licensed broker in the state of Illinois and a member of the International Council of Shopping Centers, Women in Retail Leasing, and Chainlinks National Affiliation of Retail Brokers.

For more information, visit www.midamericagrp. com.

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Omnichannel and Metaverse: The future of retail?

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etail is constantly evolving, and businesses have to remain agile to meet the ever-changing demands of collective consumerism.

It’s no longer about the product, but the customer, and businesses are relying on both a strong online presence and strategically located brickand-mortar shops to drive sales.

Some retailers treat their physical locations like marketing space, enticing customers who then return home to buy their products online. Others are focusing on ship-to-store and enhanced delivery options — both options that have flourished since the start of the pandemic.

Omnichannel is not only the key to success in today’s climate, but it’s necessary for survival.

In fact, it’s likely that it will become the new normal. Elan Rasansky, Principal at ARC Real Estate Group, said it’s all about the consumer experience, driven largely by platforms like Instagram and TikTok. E-commerce and digital marketing have grown exponentially over the years, but ultimately, the modern consumer desires a brand relationship that goes beyond the digital sphere. No matter which way you shake it, the trends boil down to humans’ desire for connection, both online and in-person — especially on the tail-end of COVID-19.

Experiential retail is at the center of it all. People are looking for restaurant-tainment. Ambiance.

Their next shareable photo. The full package is especially demanded by today’s consumer. Places that offer unique, energetic experiences have the upper hand.

“If you’re a local bar, you must have something to Instagram,” Rasansky said. “Consumers are obsessive, and they’re always looking for the ‘wow’ factor. If a brand doesn’t connect with the consumer, they’ll suffer.”

Chicago has plenty of examples of experiential shopping: Near North Side’s Starbucks Reserve Roastery, Old Town’s Lululemon and Lakeview’s 2D Restaurant, are a few.

But this doesn’t mean people will shy away from e-commerce-related habits. Experts saw a sharp

Brandon Isner

Elan Rasansky

increase in online activity that has since leveled but is expected to climb steadily, and although foot traffic is expected to increase, that doesn’t guarantee an in-store purchase, according to Brandon Isner, Americas Head of Retail Research at CBRE.

“That’s truly an omnichannel purchase,” Isner said, “using the brick-and-mortar frame to establish contract with a representative before returning home to make the purchase online.”

COVID-19 did not change the face of retail, but it did give the market an extra push in the direction it was already headed. Companies

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“You can shop in a store in the Metaverse. Not just a store within the game, but an official store run by a brand.” are still figuring it out. Brands, for example, are getting smarter with limited edition releases in stores while still catering to the mass market by offering their collection pieces online.

“It would have slowly trended this way regardless,” Rasansky explained. “People created new behavioral habits with their routine schedules.

You were having coffee and surfing Instagram.

You were having lunch in your apartment and surfing Instagram. It’s sped up the process by a few years, but we were already headed in this direction.”

Omnichannel, itself, is already evolving to satisfy needier demands. Some brands have tapped into the Metaverse to further enrich the consumer experience. Virtual worlds are built like video games, bridging the gap between digital and physical reality.

“It’s not just a game anymore,” Isner said. “You can shop in a store in the Metaverse. Not just a store within the game, but an official store run by a brand. There’s already advertising for retailers in that space. You can not only buy things for your avatar, but you can buy things for yourself.”

Isner compares the experience to Spielberg’s Ready Player One. According to Glossy, Greyscale Investments estimated the Metaverse to be a trillion-dollar revenue opportunity, and a Gartner Report predicted that 25% of people will spend at least one hour a day in the Metaverse to work, shop, attend school, socialize or consume entertainment by 2026.

This might seem farfetched, but an article by Retail Prophet said COVID-19 “has only ac-

celerated our collective imagination around the creation of an alternate reality where one can interact in real-time, at any time, with others and have shared experiences.” We see it today, on a small scale, with brands like Sephora, Nike’s RTFKT, Gucci Garden, Mesh for Microsoft Teams —Wendy’s has a Twitch presence.

This, of course, will only satisfy consumers for so long. But where is the ceiling? These are important points to consider.

It’s still just a miniscule piece of the retail space, and some remain skeptical, but there’s a lot of activity, and it continues to gain traction — $54 billion is spent on virtual goods in the Metaverse every year.

THE NET LEASE MARKET REPORT NATIONAL ASKING CAP RATES

MARKET OVERVIEW

Q4 2021 (Previous)

Q1 2022 (Current)

Basis Point Change

Retail

5.88%

5.75%

-13

Office

6.80%

6.70%

-10

Industrial

6.77%

6.60%

-17

Sector

NUMBER OF PROPERTIES ON THE MARKET Sector

Q4 2021 (Previous)

Q1 2022 (Current)

Percentage Change

Retail

3,897

3,605

-7.49%

Office

613

633

3.26%

Industrial

414

435

5.07%

MEDIAN NATIONAL ASKING VS CLOSED CAP RATE SPREAD Q4 2021 (Previous)

Q1 2022 (Current)

Basis Point Change

Retail

22

20

-2

Office

30

25

-5

Industrial

20

13

-7

Sector

2022

Q1

Cap rates in the single tenant net lease sector reached historic lows for all three asset classes in the first quarter of 2022. Single tenant cap rates compressed by 13, 10, and 17 basis points for the retail, office and industrial categories respectively. Cap rate compression continues to be derived from the significant demand for net lease properties across all investor classes.

Following record transaction volume in 2021, net lease sales velocity continued in the first quarter of 2022. Transaction volume in the first quarter of 2022 exceeded the first quarter of 2021 by more than 10% for the net lease sector.

Despite the record transaction volume in 2021, the overall net lease property supply declined by more than 5% in the first quarter of 2022. Supply chain issues and delayed expansion plans for retailers related to Covid-19 limited new construction supply. Only 15% of net lease retail properties on the market were constructed in 2021 or 2022. Accordingly, new construction properties with credit tenants including AutoZone, CVS and Dollar General experienced greater compression. Cap rates for these tenants compressed by 20, 15 and 10 basis points respectively, in the first quarter. Competition amongst investors for high quality net lease product can be evidenced by the bid-ask spread in the first quarter of 2022. The spread between asking and closed cap rates compressed by 2, 5 and 7 basis points respectively for retail, office and industrial sectors.

Towards the end of the first quarter, interest rates and inflation posed concerns to investors. The 10 Year Treasury Yield in the third quarter experienced a significant rise of 70 basis points and inflation has run to record levels. Accordingly, net lease investors are targeting properties with fixed rental escalations during the term of their leases. Investor demand for properties with limited or no rental escalations were impacted in the first quarter of 2022.

Transaction activity in the net lease sector will remain active through 2022. Property supply will be a constraint for transaction volume as current demand for net lease assets outpaces supply.

Net lease investors will be carefully monitoring the capital markets following the uptick in the 10 Year Treasury towards the end of the quarter. Cap rates will face upward pressure as the Fed has forecast multiple rate hikes in 2022.

www.bouldergroup.com

THE NET LEASE MARKET REPORT

2022

Q1 SELECTED SINGLE TENANT SALES COMPARABLES Sale Date

Sector

Tenant

City

Jan-22

Industrial

Unis

Jan-22

Industrial

Spartan College of Aeronautics and Technology

Jan-22

Office

Feb-22 Mar-22

Price Per SF

Cap Rate

Lease Term Remaining

$105,000,000

$88

4.60%

10

$32,000,000

$341

4.70%

7

$13,500,000

$466

6.33%

9

$11,430,000

$458

5.80%

6

$11,300,000

$4,484

3.72%

20

$450

5.29%

10

$682

5.00%

16

State

Price

Pooler

GA

Inglewood

CA

Bankwell Financial

New Canaan

CT

Retail

Sprouts Farmers Market

Tulsa

OK

Retail

7-Eleven

Los Angeles

CA

Feb-22

Office

Community Health Center

Clermont

FL

$11,250,000

Mar-22

Retail

Walgreens

Covington

GA

$10,110,000

Feb-22

Retail

Dick's Sporting Goods

El Paso

TX

$9,950,000

$193

7.15%

5

Feb-22

Retail

Chick-Fil-A

Carson

CA

$9,900,000

$1,995

3.40%

19

Mar-22

Retail

Cooper's Hawk

Sarasota

FL

$7,980,000

$665

5.20%

15

Feb-22

Industrial

Con-Trol

Grovetown

GA

$7,800,000

$111

6.21%

9

Feb-22

Retail

TD Bank

Coconut Creek

FL

$7,500,000

$1,894

3.85%

8

Feb-22

Retail

Harbor Freight

Pleasant Hill

CA

$7,215,240

$423

5.05%

10

Jan-22

Retail

Office Depot

Eden Prarie

MN

$7,000,000

$224

6.50%

2

Jan-22

Retail

Wawa

Cherry Hill

NJ

$7,000,000

$1,253

4.50%

18

Jan-22

Retail

Red Lobster

Fort Smith

AR

$6,700,000

$850

6.15%

17

Feb-22

Retail

Curaleaf

Miami

FL

$5,333,000

$1,444

6.00%

10

Jan-22

Retail

Crunch Fitness

Topeka

KS

$5,235,000

$133

7.51%

7

NET LEASE CAP RATE TRENDS RETAIL

OFFICE

INDUSTRIAL

8.75% 8.25% 7.75% 7.25% 6.75% 6.25% 5.75% Q1 2004

Q3 2005

Q1 2007

Q3 2008

Q1 2010

Q3 2011

Q1 2013

Q3 2014

www.bouldergroup.com

Q1 2016

Q3 2017

Q1 2019

Q3 2020

Q1 2022

THE NET LEASE MARKET REPORT

2022

Q1 MEDIAN ASKING CAP RATES BY YEAR BUILT Tenant

2017-2021

2011-2016

2005-2010

Pre 2005

7-Eleven

4.25%

4.90%

5.25%

5.50%

Advance Auto Parts

5.65%

5.85%

6.65%

7.40%

AutoZone

4.65%

5.20%

5.50%

6.50%

Bank of America

4.75%

5.00%

6.00%

6.35%

Chase Bank

4.10%

4.35%

4.80%

5.65%

CVS Pharmacy

4.50%

4.90%

6.10%

6.70%

DaVita Dialysis Center

5.25%

6.00%

6.65%

7.00%

Dollar General

5.30%

5.85%

6.25%

6.85%

Family Dollar

6.25%

6.50%

7.00%

7.75%

FedEx

5.15%

5.60%

6.30%

6.85%

Fresenius

5.25%

5.80%

6.50%

7.25%

McDonald's (GL)

3.40%

3.85%

4.15%

4.50%

O'Reilly Auto Parts

5.00%

5.60%

6.00%

6.40%

NA

7.00%

7.75%

8.00%

Starbucks

4.85%

5.25%

5.70%

6.15%

Walgreens

4 .90%

5.00%

6.25%

6.75%

Rite Aid

FOR MORE INFORMATION AUTHOR John Feeney Senior Vice President john@bouldergroup.com

CONTRIBUTORS Randy Blankstein

Jimmy Goodman

President

Partner

randy@bouldergroup.com

jimmy@bouldergroup.com

Carter Himley Senior Analyst carter@bouldergroup.com

© 2022. The Boulder Group. Information herein has been obtained from databases owned and maintained by The Boulder Group as well as third party sources. We have not verified the information and we make no guarantee, warranty or representation about it. This information is provided for general illustrative purposes and not for any specific recommendation or purpose nor under any circumstances shall any of the above information be deemed legal advice or counsel. Reliance on this information is at the risk of the reader and The Boulder Group expressly disclaims any liability arising from the use of such information. This information is designed exclusively for use by The Boulder Group clients and cannot be reproduced, retransmitted or distributed without the express written consent of The Boulder Group.

www.bouldergroup.com

15

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

River Pointe of Algonquin Phase I

David Strusiner Craig/Steven Development Corporation (847) 504.8061

2401-2413 W. Algonquin Road ID# 463

Algonquin

Year Built/Year Renovated: 1993 Type of Center: Neighborhood No. of Stores: 16 Total Space: 83,727 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Jewel/Osco, Subway, UPS Store, Rosati’s Pizza Rental Rate: $20.00 Total Passthroughs: $7.19

River Pointe of Algonquin Phase II

David Strusiner Craig/Steven Development Corporation (847) 504.8061

2401-2413 W. Algonquin Road ID# 1222

Year Built/Year Renovated: 2002 Type of Center: Neighborhood No. of Stores: 8 Total Space: 81,700 Total Available Space: 1,600 Available Minimum: 1,600 Maximum Contiguous: 1,600 Anchor Tenants: Guitar Center, Fitness 19, Rental Rate: $20.00 Total Passthroughs: $5.82

Prestwicke Plaza

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

3905-3989 W. Algonquin Road ID# 463 Year Built/Year Renovated: 2003/2016 Type of Center: Neighborhood No. of Stores: 15 Total Space: 37,968 Total Available Space: 1,828 Available Minimum: 1,828 Maximum Contiguous: 1,828 Anchor Tenants: Armanetti’s Liquors, Your Best Friends Closet Rental Rate: $19.00 Total Passthroughs: $6.25

Arlington Heights

Pal-Win

Michael Kolodny zav & Johnson Property Mgmnt.,Ltd. (773) 777.6160

1401-1457 Palatine Road ID# 1229 Year Built/Year Renovated: Type of Center: No. of Stores: Total Space: 37,000 Total Available Space: 8,600 Available Minimum: 1,100 Maximum Contiguous: 7,500 Anchor Tenants: Any Time Fitness Rental Rate: Total Passthroughs: $4.50

16

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

Bloomingdale Town Centre

David Strusiner Craig/Steven Development Corporation (847) 504.8061

NEC Lake St & Bloomingdale Road ID# 769

Bloomingdale Town Centre Phase III NEC Lake St & Bloomingdale Road ID# 133

Bloomingdale

Year Built/Year Renovated: 1996 Type of Center: Neighborhood No. of Stores: 9 Total Space: 32,246 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: AccuQuest Hearing Center, CVS Pharmacy, Pink Hair Studio Rental Rate: $19.00 Total Passthroughs: $6.88

David Strusiner Craig/Steven Development Corporation (847) 504.8061

Year Built/Year Renovated: 2005 Type of Center: Neighborhood No. of Stores: Total Space: 15,000 Total Available Space: 15,000 Available Minimum: 1,200 Maximum Contiguous: 15,000 Anchor Tenants: Future Development Rental Rate: Total Passthroughs:

The Courtyard at Stratford

David Strusiner Craig/Steven Development Corporation (847) 504.8061

357-369 W. Army Trail Road ID# 487

Year Built/Year Renovated: 1983 Type of Center: Neighborhood No. of Stores: 17 Total Space: 20,890 Total Available Space: 1565 Available Minimum: 1565 Maximum Contiguous: 1565 Anchor Tenants: For Eyes, Men’s Warehouse, FedEx Rental Rate: Total Passthroughs: $6.28

Brink Street Market 30-40 N. Williams Street ID# 676

David Strusiner Craig/Steven Development Corporation (847) 504.8061

Crystal Lake

Year Built/Year Renovated: 1989 Type of Center: Neighborhood No. of Stores: 13 Total Space: 28,042 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Starbucks, Benedicts La Strata, The Running Depot Rental Rate: $15.00 Total Passthroughs: $7.69

17

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

Country Corners

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

230 Virginia Street ID# 79

Year Built/Year Renovated: 2008 Type of Center: Community No. of Stores: 15 Total Space: 124,000 Total Available Space: 34,012 Available Minimum: 3,000 Maximum Contiguous: 25,812 Anchor Tenants: Petco, Savers, Dollar Tree Rental Rate: $10.00-18.00 Total Passthroughs: $5.00

Elmhurst Plaza

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

York & Butterfield Road ID# 248

Elmhurst

Year Built/Year Renovated: 2021 Type of Center: Neighborhood No. of Stores: 16 Total Space: 73,000 Total Available Space: 4,573 Available Minimum: 1,522 Maximum Contiguous: 3,051 Anchor Tenants: Jewel/Osco Rental Rate: 35.00 Total Passthroughs: $6.65

Lexington Square

NWC York Road & Lexington Street ID# 117

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122 Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 8 Total Space: 33,000 Total Available Space: 6,500 Available Minimum: 6,500 Maximum Contiguous: 6,500 Anchor Tenants: Fresh Start Cafe, Ace Hardware, Yoga by Degrees Rental Rate: $20.00-30.00 Total Passthroughs: $6.40

Southpoint Plaza

Evanston

635 Chicago Avenue ID# 991

David Strusiner Craig/Steven Development Corporation (847) 504.8061 Year Built/Year Renovated: 1985 Type of Center: Neighborhood No. of Stores: 14 Total Space: 29,564 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Walgreens, For-Eyes Optical, Super Cuts, Rockstar Nail & Spa Rental Rate: $19.00 Total Passthroughs: $11.46

18

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

Pembrook Corners

David Strusiner Craig/Steven Development Corporation (847) 504.8061

5250 Grand Avenue ID# 749

Port Clinton Square

Gurnee

Year Built/Year Renovated: 1989 Type of Center: Neighborhood No. of Stores: 15 Total Space: 21,462 Total Available Space: 4,343 Available Minimum: 830 Maximum Contiguous: 3,513 Anchor Tenants: Vitalant, Q Nails, Harbor Coin, Jimmy Johns Rental Rate: $18.00 Total Passthroughs: $9.84

David Strusiner Craig/Steven Development Corporation (847) 504.8061

600 Central Avenue ID# 808

Charles Plaza

Highland Park

Year Built/Year Renovated: 1984 Type of Center: Neighborhood No. of Stores: 20 Total Space: 45,188 Total Available Space: 6,922 Available Minimum: 1,297 Maximum Contiguous: 3,340 Anchor Tenants: Walker Bros. Restaurant, Dairy Queen, The Bar Method, New Balance Rental Rate: $18.00 Total Passthroughs: $10.51

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122 Year Built/Year Renovated: 2000 Type of Center: Neighborhood No. of Stores: 20 Total Space: 38,980 Total Available Space: 4,590 Available Minimum: 2,244 Maximum Contiguous: 4,590 Anchor Tenants: Jewel/Osco, Starbucks, Orangetheory Fitness, Lou Malnati’s Rental Rate: $32.00 Total Passthroughs: $12.70

The Courtyard of Lake Zurich

Hoffman Estates

1405-1481 Palatine Road ID# 1041

David Strusiner Craig/Steven Development Corporation (847) 504.8061

Cuba & Rand Road ID# 419

Lake Zurich

Year Built/Year Renovated: 1989 Type of Center: Neighborhood No. of Stores: 12 Total Space: 32,849 Total Available Space: 8,744 Available Minimum: 1,206 Maximum Contiguous: 6,331 Anchor Tenants: Walgreens, Lou Malnati Pizzeria, Avalon Spa Rental Rate: $20.00 Total Passthroughs: $8.56

19

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

6700 North Lincoln

Michael Kolodny Hallmark & Johnson Property Mgmnt., Ltd. (773) 777.6160

Lincolnwood

6700 N. Lincoln ID# 1020

Year Built/Year Renovated: Type of Center: No. of Stores: Total Space: 26,000 Total Available Space: 15,000 Available Minimum: 3,500 Maximum Contiguous: 26,000 Anchor Tenants: Rental Rate: Total Passthroughs: $5.00

Boone Creek Plaza

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

Rt 120 & Oak Drive ID# 627

McHenry

Year Built/Year Renovated: 1983/2003 Type of Center: Neighborhood No. of Stores: Total Space: 75,000 Total Available Space: 1,325 Available Minimum: 1,325 Maximum Contiguous: 1,325 Anchor Tenants: Jewel/Osco, iHop Rental Rate: $20.00 Total Passthroughs: $5.60

Naper Ridge Plaza

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

Naper Boulevard & Ridgeland Ave ID# 150

Naperville

Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 2 Total Space: 30,000 Total Available Space: 25,000 Available Minimum: 25,000 Maximum Contiguous: 25,000 Anchor Tenants: Office Depot, Fifth Third Bank Rental Rate: $20.00 Total Passthroughs: NNN

River West Plaza

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

1550 N. Aurora Road ID# 161 Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 10 Total Space: 18,500 Total Available Space: 1,551 Available Minimum: 1,551 Maximum Contiguous: 1,551 Anchor Tenants: Great Clips, Spice Mart Rental Rate: $22.00 Total Passthroughs: $6.35

20

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

North Town Plaza

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

111-115 E. Ogden Avenue ID# 815

Park Hill Plaza

Naperville

Year Built/Year Renovated: 2007 Type of Center: Neighborhood No. of Stores: 14 Total Space: 24,883 Total Available Space: 1,925 Available Minimum: 1,925 Maximum Contiguous: 1,100 Anchor Tenants: Jewel/Osco Rental Rate: $40.00 Total Passthroughs: $7.75

David Strusiner Craig/Steven Development Corporation (847) 504.8061

9156-9240 W. 91st Street ID# 437

Ottawa Centre

Orland Park

Year Built/Year Renovated: 1988 Type of Center: Neighborhood No. of Stores: 30 Total Space: 61,121 Total Available Space: 11,500 Available Minimum: 1,400 Maximum Contiguous: 3,000 Anchor Tenants:Clothes Mentor, Culver’s,Avolve Fitness Rental Rate: $16.00 Total Passthroughs: $8.11

David Strusiner Craig/Steven Development Corporation (847) 504.8061

333-389 W. Stevenson Road ID# 518

Palatine Plaza

Ottawa

Year Built/Year Renovated: Type of Center: Community No. of Stores: Total Space: 63,446 Total Available Space: 18,851 Available Minimum: 2,500 Maximum Contiguous: 12,000 Anchor Tenants: .AT&T Verizon, Rosati’s Pizza, Game Stop Rental Rate: Total Passthroughs:

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

211-333 E. Northwest Highway ID# 162

Palatine

Year Built/Year Renovated: 2010 Type of Center: Neighborhood No. of Stores: 29 Total Space: 137,000 Total Available Space: 20,690 Available Minimum: 1,495 Maximum Contiguous: 15,115 Anchor Tenants: Ace Hardware, Planet Fitness, Dollar Tree Rental Rate: $11.00 - $20.00 Total Passthroughs: $9.25

21

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

Round Lake Beach

Silver Oaks Shopping Center

David Strusiner Craig/Steven Development Corporation (847) 504.8061

SWC Route 83 & Monaville Road ID# 320

Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 7 Total Space: 19,200 Total Available Space: 6,000 Available Minimum: 1,200 Maximum Contiguous: 3,600 Anchor Tenants: Dunkin Donuts, Forest Dentistry Rental Rate: $21.00 Total Passthroughs: $8.93

The Shoppes at Stony Creek

Charles S. Margosian Highland Management Assoc., Inc. (630) 691.1122

South Elgin

305-365 S. Randall Roada ID# 815

Year Built/Year Renovated: 2000 Type of Center: Community No. of Stores: 17 Total Space: 39,393 Total Available Space: 1,800 Available Minimum: 1,800 Maximum Contiguous: 1,800 Anchor Tenants: Jewel/Osco, Ace Hardware Rental Rate: $24.00 Total Passthroughs: $9.15

Waterstone Place

David Strusiner Craig/Steven Development Corporation (847) 504.8061

34500 N. Highway 45 ID# 667

Third Lake

Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 13 Total Space: 29,748 Total Available Space: 3,730 Available Minimum: 1,169 Maximum Contiguous: 0 Anchor Tenants: Lou Malnati’s, CK Salon, Yuri of Japan, Home of the Sparrow Rental Rate: $12.00-19.00 Total Passthroughs: $5.36

The Villa Center

David Strusiner Craig/Steven Development Corporation (847) 504.8061

Villa Park

321 E. St. Charles Road ID# 530 Year Built/Year Renovated: 1985 Type of Center: Neighborhood No. of Stores: Total Space: 19,553 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Dollar General, Supercuts, Stella’s Rental Rate: $16.00 Total Passthroughs: $4.10

22

S P R I N G 2 0 2 2 R E TA I L S PA C E G U I D E

Lynn Plaza

Michael Kolodny Hallmark & Johnson Property Mgmnt., Ltd. (773) 777.6160

522-550 Dundee Road ID# 838

Wheeling

Year Built/Year Renovated: 1970/1987 Type of Center: Neighborhood No. of Stores: Total Space: 100,000 Total Available Space: 13,685 Available Minimum: 1,500 Maximum Contiguous: 10,000 Anchor Tenants: Jimenez Foods, Mark Drug Medical Supply Rental Rate: Total Passthroughs:

Zion Commons

David Strusiner Craig/Steven Development Corporation (847) 504.8061

21st Street & Sheridan Road ID# 536

Zion

Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: Total Space: 9,180 Total Available Space: 0 Available Minimum: 9,180 Maximum Contiguous: 0 Anchor Tenants: Single Tenant Building, Family Dollar Rental Rate: Total Passthroughs:

Reach Over 8000 Professionals The Retail Space Guide is the source for semiannual market reports, updates on retail trends, providing the opportunity for Brokers/ Owners to place photolistings or display advertising of retail center properties with updated data throughout Chicago Metro area, NW Indiana, SE Wisconsin.

PROMOTE your retail center in Winter 2022 Mark Menzies

Ernie Abood

312-933-8559

773-919-8799

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Marianne Grierson

Frank Biondo

312-388-6181

248-670-2691

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HIGHLAND MANAGEMENT ASSOCIATES, INC.

1 East 22nd Street, Suite 201, Lombard, Illinois 60148 630-691-1122 Fax: 630-691-8572

Visit us at: www.highlandmanagement.biz

PRIME RETAIL SPACE AVAILABLE COUNTRY CORNERS CRYSTAL LAKE

This 123,600 sq. ft. center is anchored by Petco, Dollar Tree, & Savers located in the heart of retail corridor of the rapidly growing community of Crystal Lake.

ANCHOR AVAILABLE

3000 sq. ft. - 25,812 sq. ft.

5,200 sq. ft. RESTAURANT

PALATINE PLAZA

The central location and visibility of this 137,187 sq. ft. shopping center appeals to Tenants, including: Ace Hardware, Pete & Mac’s Pet Resort, Dollar Tree, Sherwin Williams, Dairy Queen, Brown’s Chicken and Elderwerks.

PALATINE

ANCHOR AVAILABLE 15,115 sq. ft.

Established in 1985, Highland Management Associates, Inc. is proud of the high-quality, prime locations, and high-occupancy level of the thirteen properties it developed, owns and manages in Cook, DuPage, Kane, and McHenry Counties.

Not Shown: LEXINGTON SQUARE ELMHURST 33,050 Sq. Ft. BOONE CREEK PLAZA MCHENRY 70,053 Sq. Ft.

1,495- 4,080 sq.ft. INLINE SHOPS

NORTH TOWN PLAZA NAPERVILLE 24,883 Sq. Ft.

CHARLES PLAZA

Located on Palatine Road join Starbucks, Jewel Osco, Lou Malnati’s, Sport Clips, and Orangetheory Fitness in the premier community of Hoffman Estates. High visibility for both local and commuter traffic.

HOFFMAN ESTATES

AVAILABLE

2,244 sq. ft. - 4,590 sq. ft.

NAPER RIDGE PLAZA NAPERVILLE

AVAILABLE 25,000 Sq. Ft.

Rare opportunity to join area retailers, Costco, Amazon Fresh, CVS, McDonald’s, Starbucks and Fifth Third Bank.

ANCHOR AVAILABLE 25,000 sq. ft.

FREE STANDING RETAIL

RIVER WEST PLAZA NAPERVILLE 27,200 Sq. Ft. THE SHOPPES OF STONY CREEK SOUTH ELGIN 39,393 Sq. Ft. ELMHURST PLAZA ELMHURST 73,116 Sq. Ft. PRESTWICKE PLAZA ALGONQUIN 37,968 Sq. Ft.