Winter 2023/2024 Retail Space Guide

Wi nt e r 2 0 2 3 / 2 0 2 4 • w w w. re j ou r n a l s . c om

WHAT’S SO GREAT ABOUT SHOPPING CENTERS?

LET ME COUNT THE WAYS!

CHARLES PLAZA: Lou Malnati’s Pizzeria, Starbucks, Subway, Sport Clips, ATI Physical Therapy, 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, Elderwerks, Alpha Carpet, Modun Japanese Restaurant, Ascension Health, Planet Fitness, Team Rehabilitation. LEXINGTON SQUARE: Ebel’s Ace Hardware, Great Clips, W3Body, 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, Midwest Express Care, Old Havana Cigar Shop, Dunkin Donuts, ATI Physical Therapy, Executive Dry Cleaners, The UPS Store. RIVER WEST PLAZA: Pitaville, Great Clips, Drippy Smoke Shop, FastSigns of Naperville, Spice Mart, Thorntons, Goodyear/Acorn Tire, Proman Staffing. BOONE CREEK PLAZA: I-HOP, Discount Cigarette & Cigar Center, Teame Boba, Jewel/Osco. NAPER RIDGE PLAZA: Office Depot, Fifth Third Bank. COUNTRY CORNERS: Savers, Great Clips, Pho Royal, LT Nails & Spa, Petco, La Rosita Fresh Market, Krystal Thai, Baird & Warner, Weight Watchers, Mug’s Pizza & Ribs, Tower Commercial Construction, Dollar Tree, Kloud Vapor. NORTH TOWN PLAZA: Jersey Mike’s Subs, US Bank, Area 51 Cupcakery and Creamery, The UPS Store, Elite Tutoring Place, Verizon Wireless, Art & Frame, Service Nails, 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, JimmyBread, Your Best Friend’s Closet, CAMP ChiroTherapy, Gold Liquidators, Leon’s Nails, Your Best Friend’s Home, Domino’s Pizza, Team Rehabilitation, Signature Vape & CBD Plus, 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 Cuttery, Liz Dry Cleaners, Louie Angelo’s Fast Casual Italian, Foot Retreat, Anderson Humane, Richard’s Fine Jewelry, Crumbl Cookies, State Farm Janese, Outback Steakhouse.

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FEATURES 4

12 INSIDE CHICAGO’S EVOLVING

THE GREAT MIGRATION

RETAIL LANDSCAPE, WITH AVISON YOUNG AND MARCUS & MILLICHAP In Downtown Chicago,

large segments of two of the largest generations, Boomers and Millennials, made moves away from the urban core into the suburbs, even rural areas.

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the retail landscape is ever-changing.

14 THIS HOLIDAY SEASON? FOR

CONSUMERS, IT’S ALL ABOUT THE EXPERIENCE Consumers want to have fun,

WORKING TOGETHER: LANDLORDS, TENANTS AND MUNICIPALITIES The symbiotic

and they’re willing to spend big to have it.

relationship between a landlord, a tenant, and a municipality is critical to the success of a retail property.

DEVELOPED TROPHY 15 NEWLY RETAIL CENTER IN SUBURBAN

10 RETAIL: A TALE OF TWO MARKETS

Sentiment for the Chicago retail scene is perhaps best characterized as a tale of two markets: the downtown CBD market and everywhere else,

CHICAGO TRADES The Overlook at Oakbrook, a recently developed trophy retail center in Oakbrook, Illinois, has been sold in a transaction facilitated by JLL Capital Markets

16 COMCAST BRINGS FIBER TO

SEVERAL MALL PROPERTIES IN ILLINOIS AND INDIANA Comcast announced that it has proactively connected its fiber-rich network to multiple mall properties across the company’s Greater Chicago Region in Illinois and Indiana, including.

THE FED’S INTEREST RATE 17 CAN HIKE DERAIL THE UNSHAKABLE

GROCERY-ANCHORED SHOPPING CENTER? High interest rates can

create havoc for commercial real estate owners who are relying on adjustablerate loans to service their debt

METRO CHICAGO 19 WINTER RETAIL SPACE GUIDE

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 • 708.622.0074 • www.rejournals.com Publisher: Mark Menzies • menzies@rejournals.com Senior Account Executives Ernest Abood, Vice President/MW Conf Series Director • eabood@rejournals.com Frank Biondo, Vice President of Sales, fbiondo@rejournals.com Copyright © 2023 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.

Pedro Lastra via Unsplash

The Great Migration

By Fatina Sayegh and Amy Hall, Caton Commercial

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wo major migratory events were accelerated by the pandemic; Boomers were forced, or opted into, early retirement, and Millennials being squarely in the family formation life stage (ages 27-42). Both life stage milestones, in combination of the forced shutdowns and remote working conditions, created an environment in which large segments of two of the largest generations made moves away from the urban core into the suburbs, even rural areas.

The strong pulls of affordable costs of living, schools, retirement lifestyles, part-time international residency, among others, made suburban and rural areas attractive to these large populations of avid consumers. According to Placer. ai 60% of the net population migration of 2019 – 2022 went to tertiary markets. The housing affordability index has fallen, and the Midwest is benefiting from the skyrocketing cost of living on the coast. Millions of people moved during the pandemic, driven by the opportunity to work remotely, the desire for more space, and better affordability.3

When covid first began to rear its ugly head, and its impact was still unknown, the state of commercial real estate was relatively unaffected.

As recognition dawned on the severity of the pandemic, however, the economic landscape morphed into a place of uncertainty and ambiguity with serious potential for volatility. Mandated shutdowns morphed the steady growth of retail across the US into what felt like the final chapter in a cliff hanger, unsatisfyingly leaving readers with more questions than answers. But the one thing that was clear, the suburbs and tertiary markets were not merely surviving, but thriving.

2022 vs 2023 Retail Spending As shoppers adapted to the new covid-era reality, shopping habits also began to change. During the pandemic, consumers incurred less in-the-office work and travel related expenses meaning more expendable income on other categories such as groceries, home improvement, craft supplies and luxury pet products. Looking at the present day, consumers are reigning in as the rising cost of ne-

cessity goods and return to the office have shifted spending patterns once again.

According to Placer.ai, from Q3 2022 – Present, a 32% increase in grocery cost has eaten up the discretionary spending for many consumers.

This means the shift to value grocers in February 2022 through today continues to compound. Persistent recession fears have caused an “hourglass consumption pattern” so that consumers have disengaged from higher-end retail to value buys and have the desire to be seen as thrifty. Food prices are expected to grow more slowly in 2023 than in 2022 but still at above historical-average rates1, and discounters are riding high. Traffic is up regarding number of visits to grocers, but the spend-per-visit is down as consumers are shopping more frequently to cherry pick promotions and value buys. Luxury spenders have shifted their dollars to experiences and international travel versus goods.

Continued on page 6

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Continued from page 4

The direct and indirect impacts to retail spending, as we move away from the pandemic, cover the spectrum of options consumers can choose from. Return to the office is another driver cutting into pandemic-era goods consumption due to the costs of returning to work, day/dependent/ pet care, lunch costs and business clothing.

Retail Remains Strong in Chicago Market Lack of supply in the Midwest is continuing to drive demand. The Midwest has seen more than 1.5x absorption than what has been delivered.

The spread between prime and subprime markets is widening, making appraisals especially critical when building a case for lending in subprime markets. The appraised value of commercial properties is based on the quality of the asset. The property’s business use and revenue are not part of the consideration for appraised value, therefore, the management of the property and how well it’s been maintained remain two important factors in retaining long-term property value.

Chicago led all us markets in retail consumption in 2023. Chicago is also in the top 10 of US markets for year over year restaurant sales increase (up more than 9% YOY 2023 vs 2022). Accord-

“Millions of people moved during the pandemic, driven by the opportunity to work remotely, the desire for more space, and better affordability.” ing to World Business Chicago, Chicago has the versatility to adapt to a changing world… as the #1 destination for engineering, business, and tech graduates across the Midwest…4 Commercial real estate brokers, appraisers and property managers often become the lifeline between market changes and property owners. A trusted advisor consistently educates their clients on the evolving retail dynamics. While general news and media can sway property owners to believe whatever narrative suits the headlines, trusted advisors can seek to provide the most valuable thing of all, perspective.

Works cited: 1. www.ers.usda.gov/data-products/food-priceoutlook/summary-findings/#:~:text=Food%20 prices%20are%20expected%20to,of%205.5%20 to%206.1%20percent 2. www.bizjournals.com/bizjournals/ news/2022/08/31/population-housing-migration-suburbs-covid-19.html 3. www.nar.realtor/blogs/economists-outlook/ where-people-moved-in-2022 4. worldbusinesschicago.com/why-chicago/

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Working Together: Landlords, Tenants and Municipalities

By David Strusiner, Craig Steven Development Corporation

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he symbiotic relationship between a landlord, a tenant, and a municipality is critical to the success of a retail property.

More often than not in today’s environment, however, the challenges faced by one or more of these parties impacts the speed and efficiency of the deal.

As activity has increased in the retail sector, and demand is catching up with supply, there are some new ways of doing business that admittedly make things a lot harder.

Let me tell you a story. An established entertainment retail operator with 18 locations on the East Coast recently decided to bring their concept to the Chicago metropolitan area. We signed a lease with this tenant for a suburban power center - their first location in Illinois.

They submitted their drawings to the municipality and received preliminary approval with a punch list of modifications to make. They implemented the changes and submitted plans again, only to receive a rejection with the notification that their architect was not actually licensed in the state of Illinois and a 40-page additional punch list. In this case, the village requirements make it difficult for the tenant to start work. Submit, come back, submit, come back. It’s a very painful process for tenants.

Time is Not on our Side We see delays more and more from tenants and municipalities. Everything is taking longer with the municipalities. Certain municipalities have outsourced their approval processes to third parties which increases the time to get approvals for pretty much everything. Tenants are taking a longer time to evaluate a property.

It’s not uncommon to go 2 weeks without LOI approval, with no explanation.

If you’ve been in the industry for any length of time, you’ve probably heard the phrase “Time kills deals.” Yet balancing a sense of urgency to get started with the realities of the processes is forcing a new practice of extreme patience.

Delays are costly for all parties involved. The landlord doesn’t have rental income but still

has to pay their mortgage and their overhead.

The tenant incurs costs for the space and their business with no income to offset their cash outlay. The municipality has vacant storefronts and deteriorating credibility with the retail community that they are a good place to have a business. There may be impact to the property tax base for the building to have vacancy, and certainly there is no sales tax income.

Davidis Strusiner What a tenant to do?

and without substantive reserves they may run out of money before they are able to open.

We also utilize our in-house resources for space planning and construction to mitigate some of the costs to open. For many of our buildings, we are doing all of the work to provide turnkey retail space. Even when village requirements don’t make sense for our space, we ensure it’s in compliance. (An example: the required addition of a slop sink in fully carpeted space with no tile floors.)

What is a municipality to do?

First and foremost, understand that there is no process continuity from one community to the next. While municipalities used to have the same or similar laws, codes and processes it is now disparate. There have been changes in staffing, so ensure your professional advisors know the current lay of the land, not just how it used to be or has “always” been.

Second, spend more time on the front end getting your plans right before submitting to municipalities. I know of one village that tells tenants flat out that they can’t change their drawings or they’ll go to the bottom of the pile. There is less opportunity to modify while you are in the queue.

Third, choose your landlord wisely and stay in regular communication with them. They may have avenues to help.

What is a landlord to do?

How we underwrite tenants is changing. Craig Steven Development Corporation has always prided itself on providing locations and terms that allow new businesses to launch, new locations for existing businesses to open, and for both to flourish. But our internal analysis of a tenant’s financial resources has become much more critical. They need to have adequate funds to cover the extended length of time it can take to get approvals and open their businesses. We want them to succeed,

If I could make one suggestion to municipal officials, it would be to talk to the local commercial property owners. Hear how the processes impact them and their tenants, where the pain points are, and how to improve them. I often see municipalities marketing their cities at conferences. Mayors where we own property stop by my booth at ICSC and shake hands. Time and again I hear a public message that they are easy to work with, but in my own experience and those of my tenants, that narrative is wildly incongruent with actual practice. I just smile and shake hands; the elected officials may or may not even be aware of the impact of their processes on us.

Together, landlords, tenants and municipalities can build transparent timelines and improve processes that allow deals to move forward efficiently. In the interim, we will continue to do whatever it takes, when it takes longer, when it’s harder to do, to get our tenants open and thriving in their space. Craig Steven Development Corporation has been doing it for more than 50 years.

David Strusiner Is vice president and owner of Craig Steven Development Corporation. To explore the Craig Steven Development Corporation portfolio of retail space, visit https:// craigsteven.com/retail/.

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Retail: A Tale of Two Markets

By Kathleen O’Hare, Associate Director, The Real Estate Center at DePaul University

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entiment for the Chicago retail scene is perhaps best characterized as a tale of two markets: the downtown CBD market and everywhere else, according to the 2023 Chicago Mid-Year Sentiment Report produced by The Real Estate Center at DePaul University in partnership with the Urban Land Institute Chicago District Council.

Allen Joffe, Principal, First Street Retail Partners, said tourists are back and at pre-pandemic levels, which has a positive impact for retail and entertainment venues on Michigan Avenue and State Street, as well as the neighborhoods like the West Loop, Fulton Market, and River North.

“Local retailers aren’t talking about crime; it’s not as much of a concern anymore,” Joffe said. “Minimum wage and the fair work week provisions are the primary discussion points.”

He characterized the drought in demand for downtown retail space since the start of the pandemic as being the worst he’s seen in a retail advisory career spanning three decades. “The presence of retail tenants downtown, in the CBD, used to be generational,” Joffe said. “But that all changed with the pandemic.”

While there have been reports that “occupancy” or people returning to downtown offices may be approaching 60%, there is some skepticism about the stat’s accuracy, questioning whether it accurately captures older building stock. The skeptics suggest the level could be slightly more than 40%.

According to Joffe, restaurants that typically have catered to a downtown lunchtime crowd continue to struggle. “The bulk of their business is being done Tuesday through Thursday which can result in significant spoilage from Friday to Monday.”

Lower traffic volumes in the CBD, increasing labor costs and higher pro rata property tax bills combined result in lower profitability for downtown retailers. “Everything impacts the pro forma, and alters the risk-reward balance,” Joffe said.

The impact is also being felt by franchisees, some of which may be seeing their targeted 10% margins sliced by 50% or more. As far as CBD retail is concerned, this may be the new normal.

Charles Deluvio via Unsplash

“Unless there is a need to sell, owners aren’t capitulating to the lower bid prices. We are beginning to see some of that changing.”

According to Michael Gold, COO, Pine Tree, “The disruption we sensed one year ago due to the likelihood of aggressive interest rate increases has arrived, which has caused a general reduction or halting in transaction activity.”

Nonetheless, there are opportunities throughout Chicago and across the country to acquire property that is not experiencing distress, and there is plenty of capital on the sidelines that has an interest in retail assets. Gold in particular is bullish on acquiring open air retail centers. One of the challenges in acquiring open air retail is the current bid ask spread.

“Unless there is a need to sell, owners aren’t capitulating to the lower bid prices. We are beginning to see some of that changing.” Using Pine Tree as a barometer of tenant demand, Gold said that junior anchor positions, those ranging from 2030,000 square feet are faring well. He reported

that the handful of Bed Bath & Beyond spaces it has had at its centers across the country, all currently have leases or letters of intent in place for replacements.

There continues to be a reinvention and reimagining of retail malls in Chicago and across the country. One of the most common trends has been incorporating a multifamily component to enhance the lifestyle vibe and to build natural synergies with consumers. That effort is experiencing mixed levels of progress and success.

Further to the “tale of two” sentiments in the retail sector was a ranking in the DePaul-ULI MidYear Report of lifestyle retail and enclosed malls.

On a scale of 1 (weakest) to 5 (strongest), real estate professionals gave lifestyle centers a 3.02 rating where enclosed malls rated 1.68, nominally higher than downtown office buildings at 1.65.

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Inside Chicago’s evolving retail landscape, with Avison Young and Marcus & Millichap

By Mia Goulart

In Downtown Chicago, the retail landscape is ever-changing.

Praswin Prakashan via Unsplash

Of course, retailers face challenges, but opportunities exist to adapt to shifting consumer preferences and urban living.

In a recent conversation with Tim Henry, principal at Avison Young, and Mitchell Kiven, first vice president investments at Marcus & Millichap, we delve into this evolving retail environment to discuss the rise of experiential retail, the expansion of well-known brands, and the transformation of specific neighborhoods.

If we had to choose just one word to describe the future of Downtown Chicago’s retail scene?

“Dynamic”—much like the city itself.

Illinois Real Estate Journal: What notable trends have you observed in the Downtown Chicago retail market over the past year?

Tim Henry: While foot traffic and commuter activity has increased, leasing for traditional Loop retail space is extremely slow with vacancies remaining at record levels. While activity within the Loop is not yet to pre-pandemic levels, this past year has seen a marked increase in both commute and foot traffic. [According to the Chicago Loop Alliance,] CTA ridership has increased 22% over the past year while METRA ridership has increased 75%. Additionally, foot traffic in the loop is at 93% of pre-pandemic levels with hotel occupancy rebounding to the same rate just before the pandemic. Leasing for traditional Loop retail space is extremely slow with vacancies remaining at record levels.

Mitchell Kiven: Leasing velocity has remained high in well located retail properties, and retail rents have climbed significantly for the last three to four years. That’s in contrast to the previous decade plus of flat or declining rents.

I’ve seen a surge in experiential retail concepts which had been put on hold due to the pandemic, but that segment seems to be healthier than ever. It continues to be true that there’s an

“Unless there is a need to sell, owners aren’t capitulating to the lower bid prices. We are beginning to see some of that changing.” overabundance of supply in the Loop in particular (where’s there’s not the same population density), and with hybrid work schedules, it’s created persistence vacancy in that submarket.

along the Oak Street corridor with expansions/ relocations of Hermes and Cartier as well as newer brands entering the market such as AKRIS.

Illinois Real Estate Journal: Can you highlight any new flagship stores or unique retail concepts that have recently entered the market?

Kiven: I have to mention Dom’s Kitchen & Market because I believe they’re expanding, and I just can’t believe how impressive they are as retailers. They seem like the future of an urban grocery store.

Henry: Recent openings within the City of Chicago are large F&B entertainment options such as the Guinness brewery in Fulton Market. Additionally, Puttshack and pickleball concepts are expanding throughout the region.

Lastly, luxury retailers continue to expand

Illinois Real Estate Journal: Are there any particular brands or retailers that have recently expanded their presence in Chicago?

What makes these expansions significant?

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W I N T E R 2 0 2 3 / 2 0 2 4 R E TA I L S PA C E G U I D E Henry: Hy-Vee Liquor stores are opening new locations; of the tenants that we represent that are growing in Chicago, I would highlight Gerber Collision & Glass, X-Golf and Evolve Chiropractic. These tenants are service and entertainment providers, sectors that are still growing.

Triyansh Gill via Unsplash

Illinois Real Estate Journal: Are there any specific areas or neighborhoods within Downtown Chicago that are experiencing a surge in retail development or revitalization?

Henry: High density, daily needs-anchored retail is still in high demand. Additionally, Fulton Market continues to be an expanding district for national retailers particularly home furnishings such as Design within Reach and Casper and digital-first brands such as Credo, allbirds, Mejuri and Brilliant Earth. Additionally national retailers are continuing to expand within neighborhood locations such as Southport Avenue in Lakeview and Armitage Avenue within Lincoln Park.

Kiven: I’m not sure how you’re defining the boundaries of downtown exactly, but because it’s such a mature market, I haven’t seen much noteworthy development. In my opinion, it’s the neighborhoods that have more exciting retail revitalization going on. Certainly, Avondale, Irving Park, and Andersonville seem to be transforming into really exciting places to live and shop.

Illinois Real Estate Journal: Can you share insights on the challenges and opportunities facing retailers in the market currently, especially in terms of consumer preferences and demand?

Henry: Traditional mall-based and department stores retailers are always shifting their product offering and store concepts to fit consumer preferences. On trend currently within the Chicago market is Bloomingdales is looking to right-size their current stores, such as the store at Old Orchard closing and a new, smaller-format, trend-based store opening within an old Barnes& Noble space at the center. Additionally, as Abercrombie & Fitch looks to grow their consumer base, they have been opening smaller-format stores within the city, contrary to their mall-based concept in neighborhoods such as Lakeview and Gold Coast.

Kiven: To me, how well a retailer deals with the logistics of shopping and delivery, parking (particularly downtown) and lowering the

barrier to entry for their customers is what’s most determinative of their future success. It’s not a sexy answer, but that kind of logistics and supply chain prowess is as important as being a tastemaker or trendy in the current landscape.

Illinois Real Estate Journal: Are there any innovative strategies or collaborations between brands and retail spaces that have recently emerged in Downtown Chicago, and why are they noteworthy?

Henry: The food halls like Revival and multichoice food offering like Market Creations are thriving for their extensive selection and quick service, which are often viewed as an extension of neighborhood amenities to those commuting into the office.

Illinois Real Estate Journal: As we look ahead, what are your predictions for the

future of the retail market in Downtown Chicago, and what factors are likely to shape this landscape in the coming years?

Henry: Never say never! Reality will continue to adapt as new norms evolve. My advice to Loop retailers is to do as their predecessors did.

I think we will see retailers in the Loop beginning to adjust the operations from serving the office workers pre-pandemic by opening/staffing for all five workdays to shifting a broader time period on Tuesdays through Thursdays, catering to the shifting office demand.

Kiven: Service and necessity retail continues to experience robust demand, so that’s never going anywhere. We’ll see more experiential concepts gain traction and expand, particularly as downtown continues to rebound and grow.

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This holiday season? For consumers, it’s all about the experience

By Dan Rafter, Editor

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his holiday season? Consumers want to have fun, and they’re willing to spend big to have it. But before retailers get too excited? Consumers are also planning to spend less on gifts this season.

That’s the takeaway from JLL‘s 2023 Holiday Shopping Report.

According to the report, holiday shoppers plan to spend $958 a person this holiday season, with 22.8% of this money used for entertainment and experiences. More than 90% of the respondents to JLL’s holiday survey said that they planned to participate in at least one holiday-related experience.

And what experiences are shoppers planning to indulge in this holiday season? JLL says that 65.5% of survey respondents said that they would dine out at a restaurant and 43.7% will go to the movies. An additional 27.5% said that they will attend a live performance while 23.5%

said that they will travel on vacation and stay at a hotel.

On average, shoppers said that they would spend $218 on entertainmnt and holiday-related experiences this season.

To get these results, JLL surveyed 1,095 consumers online in August.

While consumers do plan to spend on experiences, they also plan on spending less on holiday goods, such as gifts. JLL reported that consumers plan to spend an average of $748 on holiday goods this holiday season. That is down from an average of $868 less year.

This year, survey respondents said that they plan to spend an average of $530 on gifts, $210 on other holiday goods such as food and decorations and $218 on entertainment and holiday-related experiences.

Last year? Survey respondents told JLL that they planned to spend an average of $612 on gifts and $255 on other holiday goods. JLL did not ask consumers about how much they planned to spend on experiences last year.

Not surprisingly, consumers with higher incomes said that they planned to spend more on the holidays this year. Consumers earning less than $50,000 said that they plan to spend roughly 40% less than the average of $958.

Wealthy consumers, those earning more than $150,000, plan to spend 85.8% more than the average person. High-end consumers said that they will splurge on experiences this year, averaging $460 a person, more than twice the overall mean of all consumers.

JLL found that women are budgeting more on gifts — 42.1% more — than are their male counterparts. Men, though, plan to outspend women on other holiday merchandise such as food and décor and on experiences.

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Newly Developed Trophy Retail Center in Suburban Chicago Trades

By Dan Rafter, Editor

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he Overlook at Oakbrook, a recently developed trophy retail center in Oakbrook, Illinois, has been sold in a transaction facilitated by JLL Capital Markets. The 54,120-square-foot center, located in the affluent DuPage County, was represented by JLL on behalf of the seller, GW Properties.MetLife Investment Management acquired the asset.

The Overlook at Oakbrook, built from 2022 to 2023, consists of seven single-tenant and multi-tenant free standing buildings. These buildings are leased to market-leading occupiers in various sectors, including restaurant, education, medical, and services. The center is fully leased, with anchor tenants including Guidepost, Lazy Dog, Panera, and Vet Emergency Group. Additionally, the center benefits from being shadow-anchored by the highest-performing Costco in Illinois.

Located at the prime corner of 22nd Street and Route 83, with frontage along the highly trafficked Interstate-88, The Overlook at Oakbrook boasts an enviable position. The property is situated across the street from Oakbrook Center, the most visited regional mall in the U.S., attracting 16.2 million visitors annually. The five-mile radius surrounding the center has an average household income of $152,000 and a population of 287,472, making it an attractive destination for retailers. Moreover, the center offers convenient access via major highways, including the Central Triangle State Tollway, the East-West Tollway, and the Eisenhower Expressway. With its close proximity to Chicago’s Central Business District, just 15 miles to the east, The Overlook at Oakbrook benefits from a strong location.

The sale of The Overlook at Oakbrook is significant as it is only the second sale of comparable scale within a three-mile radius in the last ten years. The JLL Retail Capital Markets team, comprising Senior Managing Director Alex Sharrin, Senior Director Michael Nieder, Associate John Detlaff, and Analyst Noel O’Donnel, led the transaction.

According to Sharrin, “This deal was a true testament to the location, location, location

“The successful sale of The Overlook at Oakbrook highlights the demand for high-quality retail centers in prime locations.” commercial real estate moniker, attracting bids from private, international, and institutional capital. Oakbrook consistently achieves the highest rents of any suburban Chicago retail submarket and is known as the premier suburban Chicago destination.”

JLL Capital Markets is a global provider of capital solutions for real estate investors and occupiers, offering a range of services including investment and sales advisory, debt advisory, equity advisory, and recapitalization. With more than 3,000 Capital Markets specialists worldwide and offices in nearly 50 countries, JLL has the expertise to deliver best-in-class solutions to clients.

GW Properties, the seller of The Overlook at Oakbrook, has a strong track record in retail and mixed-use properties. Over the past decade, GW has been involved in the brokerage, investment, and development of over $500 million of real estate in the Chicagoland area.

The company focuses on respectful development that uncovers opportunities, optimizes value, and enhances communities.

The successful sale of The Overlook at Oakbrook highlights the demand for high-quality retail centers in prime locations. With its exceptional tenant mix and prime corner location, the center will continue to attract visitors and drive retail success in the Oakbrook area.

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Comcast Brings Fiber to Several Mall Properties in Illinois and Indiana Internet connectivity and technology power the resurgence of malls, help them transform into anchor communities Comcast announced that it has proactively connected its fiber-rich network to multiple mall properties across the company’s Greater Chicago Region in Illinois and Indiana, including: • The Arboretum at South Barrington, South Barrington, IL • The Promenade Bolingbrook, Bolingbrook, IL • CherryVale Mall, Rockford, IL • Chicago Ridge Mall, Chicago Ridge, IL • Eastland Mall, Bloomington, IL • Fox Valley, Aurora, IL • Hawthorn Mall, Vernon Hills, IL • Louis Joliet Mall, Joliet, IL • Southlake Mall, Merrillville, IN • Westfield Old Orchard, Skokie, IL Mall traffic is experiencing a resurgence. Some malls are experiencing a shift in tenants, while others are transforming from traditional retail destinations into anchor communities that include everything from entertainment venues, medical offices, service businesses and public gathering spaces to office facilities and even residential buildings – in addition to retail. As a result, in many instances, the redevelopment is occurring both inside and outside mall structures and spilling onto the mall property.

With Comcast’s network in place, the company can deliver Internet speeds up to 100 Gbps to businesses and residential speeds faster than a Gigabit, along with its full suite of Comcast Business and Xfinity residential services, to mall properties.

“At the very least, the mix of stores inside malls is changing. On the other end of the spectrum,

some malls are planning or are even in the process of transforming themselves,” said Sean McCarthy, Comcast’s Regional Vice President of Business Development and Strategic Initiatives. “State-of-the-art Internet connectivity and technology are playing a major role in almost all aspects of these changes. You really can’t have one without the other.”

With such a wide variety of retail, commercial, residential and public uses, this new iteration of malls requires powerful Internet connectivity and technology. Examples of how technology can be employed in transformed malls include: • Retail stores process online orders for instore and curbside pickup and employ virtual in-store try-on technology.

• Medical offices access patient medical records and exchange large imaging files.

• Entertainment venues book and manage reservations for large numbers of patrons.

• Malls need powerful websites and to connect to app platforms that have real-time information about all the different tenants, services and events occurring onsite.

• Interactive maps use augmented reality and track and communicate with visitors onsite.

• Smart displays and digital directories help visitors locate businesses, provide schedules and take advantage of amenities onsite.

• With residential buildings creating a built-in market onsite, businesses in the mall interact with residents, and vice versa, from booking restaurant and concert reservations to making medical appointments.

• Residents interact online or via app with building management, access building amenities, pay rent and even track packages that arrive.

Malls contribute to the economy. Technology contributes to malls.

Malls are big businesses, major economic drivers and job creators. Malls attract visitors from local and surrounding communities, which, in turn, increases tax revenue. With the COVID19 pandemic keeping shoppers at home and the rise of online shopping, mall traffic fell.

However, a turnaround is underway. In fact, in 2022, mall sales increased by more than 11% to nearly $819 billion, according to The State of the American Mall, a report from Coresight Research. According to Gitnux Market Data, malls with a greater portion of non-retail tenants, such as restaurants, gyms and experience-oriented businesses, tend to attract more foot traffic.

For more information about the role of connectivity and technology in the next generation of malls and shopping centers, send an email to economic_development@comcast.com.

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Can the Fed’s interest rate hike derail the unshakable grocery-anchored shopping center?

By Gary D. Rappaport

H

igh interest rates can create havoc for commercial real estate owners who are relying on adjustable-rate loans to service their debt or are facing refinancing maturing loans but generally most grocery-anchored centers operate with long-term fixed-rate loans and are experiencing high occupancy rates to enable them to thrive for years to come.

When you think of commercial real estate asset classes, such as multifamily, office, industrial, hospitality, self-storage and retail, there are fundamental differences in how each of these perform over time depending on market forces, economical undercurrents and regional locations. Retail is very different than, say, office, in that the office market has been battered by remote working since the onset of the pandemic, which has reduced demand for space.

Retail, however, is a diverse sector. Some retail is freestanding. Other retail is found at small convenience centers or neighborhood centers anchored by a grocery store. Yet, other retail is in community centers, each having several anchors, such as The Home Depot and Target. Enclosed malls are regional in scope and often encompass one or more department stores.

For years, the enclosed mall was the subject of the so-called “retail apocalypse” attributed to e-commerce competition, an ominous prediction that didn’t come to pass. Whereas, e-commerce did indeed take market share from physical retail for the past two decades, other factors played in the vitality of the enclosed mall, among which included the high cost of occupancy for non-anchor tenants and the down trending department store sector. From the inception of the ubiquitous mall, department stores were the anchors that the mall relied on to draw traffic to the property.

As recent as two decades ago, department stores comprised as much as 80% of the retail space in the typical mall but that percentage has dwindled as many department stores have closed in recent years.

Big Blue Swim School has become a popular big-box anchor in shopping centers. Represented by RAPPAPORT in Washington, D.C., market for leasing space, Big Blue offers swimming lessons for kids, which brings families that frequently shop in other stores while their kids are learning to swim or are practicing for swimming tournaments.

Photo courtesy: RAPPAPORT.

Rather than cover the entire retail property sector in this report, I want to concentrate on the grocery-anchored sector, which is the sector I believe has the most advantages as we navigate through the high interest rate environment that we have experienced throughout 2023. We are likely to see continued high rates in 2024 as the Fed maintains elevated rates until it achieves its inflation target rate of 2%.

Why grocery-anchored centers outperform other retail investments When I look at each sector of real estate to invest in, I keep coming back to the robust risk-adjusted return of non-mall retail. The grocery-anchored product in particular tends to have a significant reliable cash flow that investors can see and underwrite because they can have confidence in the cash flow growth potential. The starting yield of grocery-anchored real estate relative to other products such as industrial and multifamily can start at a much higher point because the risk is greater.

Open-air centers of all types are likely to outperform other forms of retail in an acquisition because: 1. They attract retailers that cater to consumer needs for replenishable essential nondiscretionary products and services.

2. They are less costly to operate and thereby we can offer lower total occupancy costs than enclosed malls.

3. They are attracting anchors and specialty retailers, such as Kohl’s, Lululemon Athletica, Express, Apple and Foot Locker that for more than a decade have been pivoting from leasing space at malls.

4. They tend to act as last-mile merchandise providers for buy online, pick up in-store because they are located closer to where consumers live than regional malls.

Continued on page 16

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5. There is virtually no new supply being built and a glut of available well- located fixer-uppers.

When I set out to acquire new shopping centers, I can always find some with below-market rents with leases that are coming up for renewal and some vacancies where it is not too difficult to increase the net operating income in the near term, for example, the first three years of my acquisition model.

The non-discretionary aspect of goods and services offered in grocery-anchored centers plus the supply-demand of available space are key factors that I attribute in anticipating that even through a possible down cycle in 2024, this type of retail will continue to perform well.

With very little retail space being built since 2017, absorption of available space has resulted in the U.S. retail vacancy hitting a historical low of 5.4% in Q3, according to Cushman & Wakefield’s Q3 2023 U.S. Shopping Center Marketbeat report. Looking at a different dataset for the same quarter, the amount of retail space available for lease plunged to an all-time low since CoStar Group began tracking retail vacancies in 2007.

Trends in grocery-anchored centers The demand for space at grocery-anchored neighborhood centers has not come exclusively from traditional retailers, such as the typical supermarkets, drugstores, and specialty and service tenants you see at these types of centers, for example, nail salons and fast-food eating establishments, like McDonald’s and local pizza stores.

Brokers are emailing and phoning us daily with inquiries from educational uses as well as health and wellness providers looking to open storefront locations at our centers. Popular educational uses include Mathnasium, a math-tutoring franchise, Kumon, which teaches mathematics and reading, and Big Blue Swim School, one of many national of regional swimming school franchises looking to take over second generation vacant big-box space at neighborhood shopping centers.

Health and wellness at our RAPPAPORT centers include medical uses, such as pediatrics, urgent care facilities, dental (general and orthodontics), chiropractic, physical therapy and sports rehab.

Other health and wellness tenants include fitness centers and tenants that offer full-service spa

At our 1.2-million-square-foot Village at Leesburg mixed-use property in Leesburg, the county seat of Loudoun County, Virginia, Woodhouse Spas stands out among the most sought-after spa service providers in the country. Tenants that offer full-service spa treatments, such as massage therapies, facial rejuvenation, whole-body treatments, sleep therapies, manicures, pedicures and waxing, bring customers to the shopping center for repeat visits. Photo courtesy: RAPPAPORT.

treatments, such as Woodhouse Spas, a national chain that operates more than 80 locations.

About Gary D. Rappaport

Fast casual restaurants are responsible for an increased demand in space since this decade started with made-to-order food in a vast array of flavors with no table service. Among the most rapidly proliferating concepts offer spicy chicken, such as Hangry Joe’s Hot Chicken, Dave’s Hot Chicken and Hot Chikn Kitchn.

Another popular trend at grocery-anchored centers are pet stores, such as Wild Birds Unlimited, PetSmart Inc. and Petco Animal Supply Stores Inc. Pet grooming services, such as Dogtopia, offering dog daycare, boarding, spa services, grooming and training, Best Friends Pet Care, Camp Bow Wow, Fur-Get Me Not and Man’s Best Friend are another hot category as are veterinary tenants, such as Banfield Pet Hospital.

There are many other uses retail landlords can add to a grocery-anchored shopping center, but the most important retailer to secure is the right grocery store that sets the tone for leasing co-tenancy in the shopping center. Whether it is a value-oriented concept like ALDI, a specialty store like Trader Joe’s, an ethnic grocer like H Mart, a traditional grocery store like Giant (a subsidiary of Ahold Delhaize) or a large supermarket like Wegmans, the grocery store will bring a lot of foot traffic and result in frequent repeat visits that will sustain the rest of the retailers in a neighborhood center.

Gary D. Rappaport (www.garyrappaport.com) is chief executive officer of McLean, Va.-based RAPPAPORT, a retail real estate company that provides leasing, tenant representation, management and development services for more than 15 million square feet of retail space throughout the mid-Atlantic region. Rappaport also is a former trustee and chairman of the board of trustees for the International Council of Shopping Centers (ICSC). He authored the first, second, and third editions of Investing in Retail Properties: A Guide to Structuring Partnerships for Sharing Capital Appreciation and Cash Flow (Forbes Books 2023).

Rappaport also is a guest lecturer and regularly teaches classes at several universities, such as the University of Michigan, Syracuse, Johns Hopkins, and Georgetown.

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River Pointe of Algonquin Phase I

David Strusiner Craig/Steven Development Corporation (847) 504.8061

2401-2413 W. Algonquin Road

River Pointe of Algonquin Phase II

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

David Strusiner Craig/Steven Development Corporation (847) 504.8061

2401-2413 W. Algonquin Road

Year Built/Year Renovated: 2002 Type of Center: Neighborhood No. of Stores: 8 Total Space: 81,700 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Guitar Center, Fitness 19, Fun City 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

Year Built/Year Renovated: 2003/2016 Type of Center: Neighborhood No. of Stores: 15 Total Space: 37,968 Total Available Space: 5,200 Available Minimum: 2,200 Maximum Contiguous: 2,200 Anchor Tenants: Armanetti’s Liquors, Your Best Friends Closet, Guaranteed Rate Rental Rate: $18.00 Total Passthroughs: $6.50

Pal-Win

1401-1457 Palatine Road 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

Arlington Heights

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

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Bloomingdale Town Centre

David Strusiner Craig/Steven Development Corporation (847) 504.8061

Bloomingdale

NEC Lake St & Bloomingdale Road

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

Bloomingdale Town Centre Phase III NEC Lake St & Bloomingdale Road z

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:

Butterfield Village Center

Rich Bowden Caton Commercial Real Estate (815) 252.7963, rich@catoncommercial.com

1535 Butterfield Rd.

Aurora

Year Built/Year Renovated: 2008 Type of Center: Community No. of Stores: 24 Total Space: 14,715 Total Available Space: 6,334 Available Minimum: 1,200 Maximum Contiguous: 6,334 Anchor Tenants: Tropical Smoothie Cafe, Bank of America, Double Yolk Pancake House, Verizon Rental Rate: $21 Total Passthroughs: Contact Broker

Downtown Aurora Restaurant

Autumn Psaros Caton Commercial Real Estate (815) 436.5700, autumn@catoncommercial.com

5 W. Galena

Year Built/Year Renovated: Type of Center: Mixed Use No. of Stores: N/A Total Space: 53,000 Total Available Space: 4,000 Available Minimum: 4,000 Maximum Contiguous: 4,000 Anchor Tenants: Paramount Theatre, Altiro Latin Fushion, Craft Urban, Charlie’s Silver Spoon Creamery Rental Rate: Contact Broker Total Passthroughs: Contact Broker

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The Courtyard at Stratford

David Strusiner Craig/Steven Development Corporation (847) 504.8061

357-369 W. Army Trail Road

Year Built/Year Renovated: 1983 Type of Center: Neighborhood No. of Stores: 17 Total Space: 20,890 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: For Eyes, Men’s Warehouse, FedEx, Fry n wings Rental Rate: $21 Total Passthroughs: $6.28

Brink Street Market

David Strusiner Craig/Steven Development Corporation (847) 504.8061

30-40 N. Williams Street

Country Corners

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

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

230 Virginia Street

Year Built/Year Renovated: 2008 Type of Center: Community No. of Stores: 15 Total Space: 124,000 Total Available Space: 34,012 Available Minimum: 2,100 Maximum Contiguous: 7,300 Anchor Tenants: Petco, Savers, Dollar Tree, LaRosita Market Rental Rate: $15.00 - $20.00 Total Passthroughs: $5.15

Elmhurst Plaza

York & Butterfield Road

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

Elmhurst

Year Built/Year Renovated: 2021 Type of Center: Neighborhood No. of Stores: 16 Total Space: 73,000 Total Available Space: 1,522 Available Minimum: 1,522 Maximum Contiguous: 1,522 Anchor Tenants: Jewel/Osco, ATI Physical Therapy, Dunkin Donuts, The UPS Store Rental Rate: Please call Total Passthroughs: $6.65

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Lexington Square

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

NWC York Road & Lexington Street Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 8 Total Space: 33,000 Total Available Space: Call Broker Available Minimum: Call Broker Maximum Contiguous: Call Broker Anchor Tenants: Fresh Start Cafe, Ace Hardware, W3Body Rental Rate: N/A Total Passthroughs: $6.40

Southpoint Plaza 635 Chicago Avenue

Evanston

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

Pembrook Corners 5250 Grand Avenue

David Strusiner Craig/Steven Development Corporation (847) 504.8061

Gurnee

Year Built/Year Renovated: 1989 Type of Center: Neighborhood No. of Stores: 15 Total Space: 21,462 Total Available Space: 1,158 Available Minimum: 1,158 Maximum Contiguous: 1,158 Anchor Tenants: Vitalant, Harbor Coin, Jimmy Johns, Kumon Learning Center Rental Rate: $18.00 Total Passthroughs: $9.84

Port Clinton Square 600 Central Avenue

Highland Park

David Strusiner Craig/Steven Development Corporation (847) 504.8061

David Strusiner Craig/Steven Development Corporation (847) 504.8061 Year Built/Year Renovated: 1984 Type of Center: Neighborhood No. of Stores: 20 Total Space: 45,188 Total Available Space: 5,593 Available Minimum: 1,297 Maximum Contiguous: 3,340 Anchor Tenants: Walker Bros. Restaurant, Dairy Queen, The Bar Method, New Balance, Stretch Lab Rental Rate: $18.00 Total Passthroughs: $10.51

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Charles Plaza

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

1405-1481 Palatine Road

The Courtyard of Lake Zurich

David Strusiner Craig/Steven Development Corporation (847) 504.8061

Cuba & Rand Road

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

Boone Creek Plaza

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

Rt 120 & Oak Drive

Jefferson Place, Downtown Naperville

McHenry

Year Built/Year Renovated: 1983/2003 Type of Center: Neighborhood No. of Stores: Total Space: 75,000 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Jewel/Osco, iHop Rental Rate: N/A Total Passthroughs: N/A

19-27 W. Jefferson Ave.

Hoffman Estates

Year Built/Year Renovated: 2000 Type of Center: Neighborhood No. of Stores: 20 Total Space: 38,980 Total Available Space: 2,250 Available Minimum: 2,250 Maximum Contiguous: 2,250 Anchor Tenants: Jewel/Osco, Starbucks, Orangetheory Fitness, Lou Malnati’s, ATI Physical Therapy Rental Rate: $30.00 Total Passthroughs: $13.25

Christina Caton Kitchel, Caton Commercial Real Estate (815) 436.5700, christina@catoncommercial.com

Naperville

Year Built/Year Renovated: 1941, Renovations In Progress Type of Center: Mixed Use No. of Stores: 4 Total Space: 16,937 Total Available Space: 8,483 Available Minimum: 1,702 Maximum Contiguous: 4,939 Anchor Tenants: Apple Store, Ramsay’s Kitchen, Filson, Bluemercury Rental Rate: Contact Broker Total Passthroughs Contact Broker

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Naper Ridge Plaza

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

Naper Boulevard & Ridgeland Ave Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 2 Total Space: 30,000 Total Available Space: 25,000 Available Minimum: Maximum Contiguous: Anchor Tenants: Office Depot, Fifth Third Bank Rental Rate: Negotiable Total Passthroughs: N/A

River West Plaza

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

1550 N. Aurora Road Year Built/Year Renovated: 2018 Type of Center: Neighborhood No. of Stores: 10 Total Space: 18,500 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Great Clips, Spice Mart Rental Rate: N/A Total Passthroughs: N/A

North Town Plaza

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

111-115 E. Ogden Avenue Year Built/Year Renovated: 2016 Type of Center: Neighborhood No. of Stores: 14 Total Space: 24,883 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Jewel/Osco Rental Rate: N/A Total Passthroughs: N/A

Park Hill Plaza Orland Park

9156-9240 W. 91st Street

David Strusiner Craig/Steven Development Corporation (847) 504.8061 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, Namaste Grocery Store Rental Rate: $16.00 Total Passthroughs: $8.11

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Ottawa Centre

David Strusiner Craig/Steven Development Corporation (847) 504.8061

333-389 W. Stevenson Road

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

Romeoville Towne Center

Palatine

Year Built/Year Renovated: 2017 Type of Center: Neighborhood No. of Stores: 29 Total Space: 137,000 Total Available Space: 16,610 Available Minimum: 1,495 Maximum Contiguous: 15,115 Anchor Tenants: Ace Hardware, Planet Fitness, Dollar Tree, Sherwin Williams Rental Rate: $11.00 - $20.00 Total Passthroughs: $9.25

Jackie Konrath Caton Commercial Real Estate (630) 669.5690, jackie@catoncommercial.com

405 Weber Rd, Romeoville, IL, 60446

Romeoville

Year Built/Year Renovated: 2001 Type of Center: Community No. of Stores: 22 Total Space: 113,422 Total Available Space: 84,065 Available Minimum: 1,440 Maximum Contiguous: 65,492 Anchor Tenants: Ace Hardware, Culver’s, Valley View Dental, ATI Physical Therapy Rental Rate: Contact Broker Total Passthroughs: Contact Broker

Silver Oaks Shopping Center SWC Route 83 & Monaville Road

Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 7 Total Space: 19,200 Total Available Space: 4,800 Available Minimum: 1,200 Maximum Contiguous: 3,600 Anchor Tenants: Dunkin Donuts, Forest Dentistry, Joy Foot Spa Rental Rate: $21.00 Total Passthroughs: $8.93

Round Lake Beach

David Strusiner Craig/Steven Development Corporation (847) 504.8061

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The Shoppes at Stony Creek

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

South Elgin

305-365 S. Randall Roada

Year Built/Year Renovated: 2023 Type of Center: Community No. of Stores: 17 Total Space: 39,393 Total Available Space: 0 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Jewel/Osco, Ace Hardware Rental Rate: N/A Total Passthroughs: $9.35

Waterstone Place

David Strusiner Craig/Steven Development Corporation (847) 504.8061

34500 N. Highway 45

Third Lake

Year Built/Year Renovated: 2004 Type of Center: Neighborhood No. of Stores: 13 Total Space: 29,748 Total Available Space: 2,561 Available Minimum: 1,169 Maximum Contiguous: 0 Anchor Tenants: Lou Malnati’s, CK Salon, Home of the Sparrow, Aki of Japan Rental Rate: $12.00-19.00 Total Passthroughs: $5.36

The Villa Center

David Strusiner Craig/Steven Development Corporation (847) 504.8061

321 E. St. Charles Road

Villa Park

Year Built/Year Renovated: 1985 Type of Center: Neighborhood No. of Stores: Total Space: 19,553 Total Available Space: 1,200 Available Minimum: 0 Maximum Contiguous: 0 Anchor Tenants: Dollar General, Supercuts, Stella’s Rental Rate: $16.00 Total Passthroughs: $4.10

Lynn Plaza

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

Wheeling

522-550 Dundee Road 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:

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

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

CRYSTAL LAKE

3,000 sq. ft. ENDCAP 2,100 sq. ft. RESTAURANT 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.

1,495 sq.ft. INLINE SHOP

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

HOFFMAN ESTATES

AVAILABLE 2,250 sq. ft.

NAPER RIDGE PLAZA STONY CREEK

AVAILABLE

E AVAIL ABL 6,163 sq.

ft.

Not Shown: LEXINGTON SQUARE ELMHURST 33,050 Sq. Ft. BOONE CREEK PLAZA MCHENRY 70,053 Sq. Ft. NORTH TOWN PLAZA NAPERVILLE 24,883 Sq. Ft.

CHARLES PLAZA

NAPERVILLE SOUTH ELGIN

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.

25,000 SQ. FT.

Anchored

by Jewel/Osco Rare opportunity to join area and Ace Hardware, at the retrailers, Costco, Amazon Frsh, intersection of Randall Road CVS, McDonald’s, Starbucks McDonald Road in the andand Fifth Third Bank. fast-growing suburb of South Elgin. Nearby Retailers ANCHOR AVAILABLE Kohl’s,FALL Best 2024 Buy and Home Depot.

FREESTANDING OUTLOT FREE STANDING RESTAURANT AVAILABLE RETAIL 6,163 sq. ft.

RIVER WEST PLAZA NAPERVILLE 27,200 Sq. Ft. NAPER RIDGE PLAZA NAPERVILLE 30,000 Sq. Ft. ELMHURST PLAZA ELMHURST 73,116 Sq. Ft. 1,552 Sq. Ft. INLINE PRESTWICKE PLAZA ALGONQUIN 37,968 Sq. Ft.