6 CONSCIOUS CONSUMERISM
10 forever fit
20 PALM BEACH county
suburban SHOPPING CENTER report 2013/14
38a day in the life
of your (un)common neighborhood shopping center
36 boca buzz TRENDS
Welcome to the second issue of Terranova TRENDS. Our last issue was so well received - we truly appreciate your positive feedback! We are thrilled to do it again and hope you enjoy what our team has put together for our second edition. This issue of TRENDS includes the 18th annual Palm Beach County Suburban Shopping Center Report, which highlights rental rate and occupancy statistics for the county’s shopping centers, including our very own Shadowwood Square in West Boca Raton. You’ll also get a look at new construction projects, new-to-market retailers, consumer income trends, and a detailed look at each submarket and its retail happenings. In addition, our team has put together editorial pieces featuring relevant trends percolating through the area. Conscious Consumerism will give you a look at a trend that is gaining steam, increasing its influence on retail practices. In Forever Fit we pinpoint lifestyles that are boosting shopping center occupancy. In that same vein, we take a look at the ubiquitous Walgreens, and how this drug store leader’s evolving marketing strategies keep it relevant to consumers.
How refreshing it is to look at things from a different point of view. To that end, our managing editor takes a candid approach to spending an entire day at a local shopping center in A Day in the Life of Your (un)Common Shopping Center. You’ll find her exploring various businesses and getting first-hand experience with how much a well-leased neighborhood center has to offer. It may just inspire you. Along with TRENDS, we’re also gradually increasing our online presence. We’ve launched our TRENDS Blog, which can be found on the navigation bar at Terranovacorp.com. There you’ll find our weekly ‘trending topics’ as they relate to South Florida’s real estate industry. We’re working on other exciting online moves for the near future. In the meantime, if you’d like to be added to our mailing list for future announcements and publication updates, please contact firstname.lastname@example.org.
Chairman Stephen H. Bittel executive Vice President / Editor-in-Chief Mindy McIlroy managing Editor Kristin Clark Research Director / Contributing Writer Alina Matas Graphic Designer Michael Dorer Research Assistant Kesley De Miranda Contributing Photographer Nicholl Vincent publisher Terranova Corporation advertisers 50 Eggs C. Orrico Darque Tan imoto Perfomance Bicycle Raw Juce SoBlo The Home Trust Tunies Natural Grocery
Enjoy this latest issue of TRENDS! Mindy McIlroy
Terranova Corporation 801 Arthur Godfrey Road Miami Beach, Florida 305.695.8700 email@example.com
CONSCIOUS CONSUMERISM Shoppers are Placing Their Dollars Where Their Values Are – and the Smartest Brands are Paying Attention
de cades , the envi ronm ental m ovem ent w as deemed the st uff of rene g ade h i p p i es and m odern day tree hug g ers . A n i m a l r i g h ts advocates see med ne u tral ized to a narro w s p h ere o f i n f l uen c e i n p rod u ct test ing . Wo m en ’s r i g h ts a ct i v i sts w ere a u dible in the politica l arena , b ut not so m uc h at t h e corner store. T oday, all those voic es are co m i n g to t h e m a ll.
In turn, leading retailers are responding with focused efforts, programs and campaigns that address sustainability, health and social welfare. “Brand leaders like H&M, Eileen Fisher, Target, Kohl’s, Levi’s, Nike, Avery Dennison and countless others are focused on shifting societal demand and behavior toward products and services that support a sustainable future,” says Marie Perriard, spokeswoman for Sustainable Brands, a global consortium of leading retailers, manufacturers and other businesses, formed in 2006 to support the design and pursuit of conscious business practices.
cycles into new clothing, and in 2011 introduced an annual “Sustainable Collection”, a clothing line guaranteed to have been manufactured with organic leathers and silks, and carrying environmentally-friendly cleaning instructions. At the design end, luxury fashion designer Stella McCartney has brought eco fashion to the runway with a line that is “cruelty-free” to any living organism involved in its production. Do-good merchants are equally making strides. Toms Shoes, a for-profit brand founded in 2006 by Texas entrepreneur Blake Mycoskie, has incorporated philanthropy in every single fashion-statement pair of its widely popular canvas shoes, which retail for over $45. For every pair of shoes the company sells, it donates a pair of shoes to a poor child. The company followed with Toms Eyewear in 2011, bringing the same donation scheme to eyewear. Most recently in 2014, it launched Toms Roasting Co., an initiative to provide clean water through the sale of premium coffee beans. A lesser known brand, 31 Bits, is carving a niche with jewelry handmade from 100% recycled paper products in Uganda, a sourcing approach that creates jobs for Ugandan women.
Fashion retail giant H&M, for example, in 2013 began collecting shoppers’ discarded clothing, which it donates or re-
The dollar impact of conscious consumerism hasn’t been widely measured. But even if in blurry lines, a distinct inten-
Their concerns are feeding into a growing consumer force that is making its presence felt in the marketplace in a more focused way, keeping tabs on retailers’ practices for merchandise production, employment and social stances. In a movement called and recognized as Conscious Consumerism, shoppers increasingly are discriminating who they purchase from, based on how the merchants embrace or disregard, as the case might be, the issues that are important to them.
tion to shop consciously is increasingly apparent. A 2013 global survey by consumer behavior firm Nielsen found that 50% of respondents said they would be willing to reward companies that give back to society by paying more for their goods and services – up from 45% in 2011. Within the U.S. respondent sample, 44% said they were willing to pay more for their goods and services, compared to 36% in 2011. Segmented by age groups, the Nielsen survey found that respondents under age 30 – part of the so-called Millennial Generation -- are the most likely to say they’d spend more to reward companies they deem worthy. Considering how well plugged Millennials are into all social media, retail brands will do well to mind the impact of their business practices. This group isn’t only more willing to reward “good” businesses, their social media habits have them on a 24-7 alert that keep brands accountable for their actions. Among the generation that made “share” an integral part of social identity and belonging, one controversial tweet or update can cause a frenzy of unanticipated negative attention. Consider Lululemon Athletica, which up until recently had achieved high sales volume and consumer appeal with its experiential retail approach. The yoga wear retailer is now experiencing the negative repercussions of ignoring its consumers’ sensitivities, if not their values. The company first alienated consumers when its co-founder dismissed complaints that a certain line of its yoga pants was too sheer, saying the problem was the line doesn’t work for every woman because of “rubbing through the thighs”, a remark interpreted as ridiculing large women. After his apologies and resignation, the company soon found itself in hot water over the issue, this time at the hands of the
Twitter generation. A Lululemon store in Bethesda, Md. posted on its store window a poem that made reference to rubbing thighs. An onlooker shared a photo of the window on Twitter, prompting Lululemon to remove the poem and apologize again. The fiascos have impacted revenues and same-store sales at the company, which is still repairing its image. To be sure, the practice of being ethical and conscious in all aspects of business operations - from sustaining the planet to sustaining your employees and decreasing poverty, while sustaining the favor of your investors - can be a tricky one. Whole Foods, for example, boasts several consumer-favored practices, such as selling organic products, which are deemed more sustainable and health-enhancing, or ranking, for shoppers’ review, the sustainability of the cleaning products it stocks, and even paying above-average wages and benefits to its rank-and-file. But sustainability watchdogs have also criticized the chain for, say, importing organic fruit from Chile to sell in its New York stores, the transport of such produce creating its own undesirable carbon footprint. Meanwhile, Walmart, whose main distinction is having the largest stores with the lowest prices on merchandise sourced from throughout the world, wouldn’t appear at first glance to conform to the credo of conscious consumerism. Yet, even the largest retailer in the world is at least nodding to issues of sustainability, a step in the right direction of conscious consumerism. The retail giant has installed solar panels in its stores, is stocking more organic foods in its supermarkets, and in 2009 launched the Sustainability Consortium, an international group of retailers, manufacturers and other organizations, whose mission is to develop methodologies and standards for the manufacture and transportation of consumer products in a sustainable way. The Sustainability Consortium has over 100 members, and is jointly administered by Arizona State University and University of Arkansas, with additional operations at Wageningen University in The Netherlands and Nanjing University in China. “When industry players like H&M and Walmart are heeding the call for sustainability measures, and are addressing consumers’ concerns over these issues, it means the pressure is mounting to the point where it will be shared by all in the industry,” says Terranova Executive Vice President Mindy McIlroy.
forever fit HEALTHY LIFESTYLES KEEP SHOPPING CENTERS GOING STRONG By Alina Matas
A f ter a bout with cancer, Boca R aton b us i ness man
Barr y Rabkin de cided h i s ne w f o und h eal t h p ra c t i c e o f j u icing also made f or a p ros p e ct i ve b us i ness . He ta p ped his ne ighb or and reta i l entrep rene u r Jef f Levine , founder o f t h e S a l ad Creat i ons c h a i n . T he tw o men bro ug h t i n a t h i rd p artner , f or mer Q u izno’ s Sub s president S teve S h a f f er, and t h e i dea took f orm - R aw Juc e , one o f S o ut h F l ori da’s fi rst c ol d-pressed fres h jui ce b ars . “The reception was phenomenal,” Levine says, adding that revenues have been two and a half times what the partners initially projected when they opened their first location this past October. With an average household income of nearly $90,000, Boca Raton had ideal demographics for the juice bar trend. But something else is at play. Juicing has become a lifestyle trend. It is no coincidence that Raw Juce’s location on Glades Road in Boca Raton is next to a health club and within steps of a yoga studio. Take a look at Raw Juce’s retail environment, and you will find the modern character of the suburban shopping center retail lineup: health merchants, fitness merchants, beauty merchants, with a smattering of the typical pack & ship, cell phone store and medical line up that we are used to seeing in our neighborhood center. Consumers everywhere increasingly want to be healthy, fit and good looking. So while the most popular fashion stores and restaurants might be in pursuit of the urban core’s new denizens, residents living and working near suburban shopping centers remain alive and well. And indeed, this very “alive and well” is fueling retail trends that are enhancing suburban shopping centers’ occupancies, even as many traditional retailers pare down on brick-and-mortar space. TRENDS
After all, even in your comfortable suburban home, you can’t eat, groom or exercise through the Internet. “Despite the rising waves of digital shopping and urban migration, suburban shoppers still want a nearby center where they can get the services and activities that help them stay healthy and fit,” says Mindy McIlroy, Terranova’s executive vice president, and herself a convert to juicing. “Many of these services can’t be rendered over the Internet, so the retail categories that are catering to consumers’ physical lifestyles are thriving in suburban shopping centers.” Merchants tapping into health and beauty indeed are boosting business. Gross sales in beauty shops, barber shops and personal appearance services in Palm Beach County reached $307 million in 2013, up 44% from $212 million in 2008, according to figures from Florida’s Department of Revenue. The growth outpaces that in apparel and accessory stores, which increased 28% over the same time period, and in restaurant and other meal services, which increased 22%. State figures for personal fitness and health food merchants as separate categories do not exist, but without a doubt, current consumer focus on personal fitness and body care is playing out nationwide to the tune of billions of dollars.
“Despite the rising waves of digital shopping and urban migration, suburban shoppers still want a nearby center where they can get the services and activities that help them stay healthy and fit” -Terranova’s Executive Vice President Mindy McIlroy
The $22 billion U.S. health club industry counted 50.2 million club members in 2012, compared to 45.5 million members in 2008, a 10% increase over the five-year period, according to figures from the International Health, Racquet & Sportsclub Association. IBISWorld, a business trade publication, named Pilates and yoga studios among the top 10 fastest-growing industries in the U.S. in 2012, with an average annual growth rate of 12.1 percent over the previous decade. It might be why some of the fastest growing brand names across the shopping center landscape in Palm Beach County are from the fitness industry. LA Fitness, Planet Fitness and Youfit have all staked out new shopping center locations in the county over the past year. Meanwhile, the newest kid on the block, Orangetheory Fitness, continued its rapid expansion with four more Palm Beach sites, in Boynton Beach, Wellington and Jupiter. Another new location in Boca Raton – the second in that city – is under negotiations. The Palm Beach locations are part of the chain’s rapid expansion to 200 locations, worldwide, in the past three years. “Orangetheory Fitness has had consistent growth, and it’s really skyrocketed in the past year,” said Orangetheory’s chief executive David Long. “High-intensity interval training, a foundation of our workout, was recently named the number one fitness trend for 2014, so that has also fueled interest.” High Intensity Interval Training, or HIIT in trade jargon, involves alternating intervals of intense exercise with intervals of slower activity. Through the 60-minute Orangetheory workout, members see their heart rates moving through different color codes on an overhead screen, building up to the “orange zone”, the zone at which the exertion level delivers optimal benefits. (Other fitness chains offer their own trend-resonating specialties as well, from no-contract memberships as low as $10 a month, as does Youfit, to a wide, choose-your-own-style menu of group classes, exercise
equipment, personal training and workout schedules, as does LA Fitness.) While fitness clubs of all kinds keep popping up in suburban shopping centers, an old staple of this asset class – beauty salons -- remains equally ubiquitous. The impact of this merchant category is more than skin deep. Consider: Between the fourth quarters of 2009 and 2010, the salon and spa industry grew by nearly 1,600 locations nationwide, an increase of 1.7%. By comparison, the overall economy had a net increase of 26,500 private-sector business establishments – a gain of only 0.3%, according to U.S. Labor Department figures culled by the Professional Beauty Association and the National Cosmetology Association. By all accounts, the growth in the category is partly due to consumers’ reluctance to give up personal grooming, even in recessionary times. But also keeping this category’s buoyancy are new trends that cater to modern lifestyles. While consumers aren’t willing to give up personal grooming, they remain time-strapped, which has fostered two beauty and body care trends that are drawing more customers: New socalled Blow Dry bars give your hair a quick makeover, while spray tanning has shortened the time you need to spend at the tanning salon. As far as indoor tanning goes, “More people are coming in now that wouldn’t have considered it before,” says Molly Camarco, Florida’s district manager for Darque Tan, a national chain of tanning salons with three Florida locations, two of them in Boca Raton. “It’s become more accessible, more affordable, and it’s getting easier to use, there’s less room for error.”
With monthly memberships ranging from $25 to $99, Darque Tan offers both the original tanning bed under a sunlamp (duration and intensity are calibrated according to skin type), and Mystic Spa or Versa Spa, two methods to spray the entire body with a tanning solution that darkens your skin over time, but lets you be in and out of the salon within 10 minutes. Blow Dry bars, for their part, have been popping up throughout the country, and it didn’t take long for the trend to find its way to South Florida, where most days there’s no getting away from humidity.
“We saw a need for it in Boca,” says Dominique Dagnone, co-owner of Blow and Go. “People in Boca care much more about their looks.”
That might be why about 100 people a day step into the Boca Raton location of national chain Blow and Go, says franchise co-owner Dominique Dagnone. A Blow Dry bar is a combination of luxury with assembly-line speed. No appointment necessary, just a row of chairs available on a first come first serve basis. Customers are served cappuccino and provided with an iPad, if they want, or entertained with girly movies playing on an overhead screen. Within 30 minutes and $35, they walk out with perfectly washed and dried hair.
kets. But most noticeable in this fiercely competitive category are the grocery stores in the business of natural and organic foods. National chain Whole Foods and its close competitor Fresh Market, both of which have higher-income demographic requirements than traditional supermarket brands, are pursuing new locations as their businesses continue to grow. (Whole Foods posted same-store sales increase of 5.4% for the most recent quarter, while Fresh Market posted a 3.1% increase.)
The first of Blow and Go’s three locations was in Boca Raton, where people do a lot of socializing outdoors. “We saw a need for it in Boca,” Dagnone says. “People in Boca care much more about their looks.”
Whole Foods is adding one store in Palm Beach County, coanchoring the Palm Beach Outlets Mall under construction in West Palm Beach. Fresh Market, meanwhile,
So as juice bars and beauty spas enliven shopping centers and occupy small spaces, who is filling the big-box spaces? To be sure, not all anchor retailers are paring back suburban locations, least of all supermar-
ing the fridge every week, we couldn’t keep it stocked,” Klein recalls. “People were coming from all different areas because they’d heard there was a fridge in the gym.” She decided to invest her focus and energy in creating her own restaurant, Fit Foodz Cafe.
opened two new stores over the past 18 months, in Delray Beach and in Jupiter. Up against this formidable competition and the ubiquitous GNC chain of vitamin supplements is Tunie’s, a South Florida retailer whose growing business of natural foods and nutritional supplements is leading it to open a third store. Big format or small format, national or local, the market is increasingly hungry for health foods, particularly after a workout, and maybe before going to the beauty salon. Ask
“It’s been crazy,’’ Klein says of opening and running the restaurant. But the restaurant’s growing clientele has encouraged her to pursue a second location. Where is she looking? Given that she’s now in West Boca, her sights are set in the next logical place - East Boca. Terranova’s McIlroy can’t help but see the suburban retail landscape in Boca Raton as a showcase of the national trends that are fueling brick-and-mortar expansion, even as digital shopping and urban renewal are changing the retail scene. The health, fitness and beauty trends should lead landlords to pursue retailers that can service the wellness lifestyle, particularly when it comes to suburban shopping centers.
The health, fitness and beauty trends should lead landlords to look for retailers that can synergize with this lifestyle, particularly when it comes to suburban shopping centers. Susan Klein, owner of Fit Foodz Café, an independently owned health foods restaurant that opened nearly three years ago in very suburban West Boca Raton. Klein, now in her 30s, moved to Boca from New York to attend Florida Atlantic University, where she earned a degree in international business. Her lifestyle included a work-out regimen at the neighborhood gym, owned by a friend, and a job as corporate manager of a chain of Italian restaurants. The gym’s owner knew of Klein’s passion for food and asked her to prepare items he would sell out of a fridge in the gym. Klein, who lost 49 pounds in six months by exercising and eating healthier, brought in health-smart dishes that included tons of veggies and wonder foods like quinoa. She developed a Web page for her food creations, and kept getting more business for take-out food from the gym. “I kept fill-
Case in point is retail chain Performance Bicycle, McIlroy says. The national bicycle retailer, based in Chapel Hill, N.C., chose Shadowwood Square in Boca Raton for its first Florida store, tapping on the growing popularity of the cycling sport in South Florida. National cycling events like Critical Mass, where bikers take to the street in mass to assert their place on the road, and Bike Polo, competitive matches in which players ride a bike instead of a horse, have taken root in South Florida, giving this region of car-dependent suburbia a lifestyle dimension that bespeaks of fitness, of health, and, why not, of looking good. “I think these trends will continue going strong and creating demand for our suburban shopping centers,” McIlroy says. “In regions like South Florida, with vibrant population growth and multi-cultural outlook, it isn’t long until each new trend takes hold and generates retail and real estate synergy.” TRENDS
e’ve all heard the commercials on the radio and seen ads on TV, but what is Walgreens really doing to differentiate themselves in the drug-store market? There’s CVS and Rite Aid plus a growing presence of grocery store based pharmacies…don’t they all start to feel the same? Besides the fact that Walgreens has been around for over a century, it is extremely aware of its customers’ needs and purchasing trends. Since 1901 the chain has opened over 8,000 locations within the US alone, with plans to expand internationally. In a health and beauty conscious area, like Boca Raton, there are drug stores, spas, and in-and-out beauty specialty bars nearly every few blocks. Walgreens has done an amazing job rolling out hands-on programs like ‘Night at the W’ and Optimal Wellness to give consumers easy access to health and beauty advice in a more laid-back environment. Optimal Wellness is designed for Walgreens professionals to work alongside patients, as well as their primary physicians, to help educate and design the best method of treatment for chronic illness. The company felt there was a lack in face-to-face interaction and education for chronic illness such as diabetes, and decided to make that knowledge available to the masses at its local storefronts. While Night at the W is a beauty-based initiative designed to give female customers a chance to feel glamorous for a night. The red carpet is rolled out (in-store) with Beauty Advisors on hand to offer advice, beauty consultations, and complimentary product samples to help enhance natural beauty. Night at the W is implemented nationwide on the same night, several times a year. The next one takes place May 2 if you’d like to check it out! A latecomer to the ‘loyalty card’ program that many other drug stores have spent so much effort advertising, Walgreens officially decided to introduce an incentive based program in 2012 and the response was astounding. Nearly 11 million people joined within the first week it was offered, further solidifying Walgreens as the industry leader for the drug store market. In addition to health care initiatives, Walgreens is also re-inventing its design aesthetic and incorporating more digital, tech-savvy concepts within its stores. I’ve seen these changes first hand in New York City, but the company plans to roll-out these improvements nationwide over the next few years. The brand is starting to move away from bold red and introduce cool blues and beige into its clinics, along with fresh food options, more aisles of new product (think ‘lifestyle’ focused) and smartphone-compatible check-outs – these are just a few of the revamps that will continue to take place at Walgreens. Through innovation and brand diversity, Walgreens is another great example of brand’s that are continuing to evaluate the needs of their target consumer and delivering solutions that cater to those expectations. The marketplace is constantly growing and the way consumers interact with businesses and brands is changing daily, but I think it’s safe to say, there’s no reason why our grandchildren won’t be getting their prescriptions filled at the corner Walgreens for years to come.
palm beach county suburban shopping center report 2013-14 edition 20
Steadily Upward A
verage asking rent in Palm Beach County shopping centers increased in 2013, for a second year in a row, continuing the slow but steady recovery that began in 2011. Occupancy also increased, but only slightly, as some of the county’s shopping centers still contend with vacant big boxes, contributing to the overall double-digit vacancy rate. Average asking net rent for inline space in Palm Beach County is $22.12 as of year-end 2013, a 3.2% increase from $21.43 in 2012, and following a 1.7% increase between 2011 and 2012. Four of the county’s six submarkets showed increases in average asking rent in 2013. Leasing activity, including some absorption of empty big boxes, led to a drop in the county’s vacancy rate to 11.3%, compared to 12.5% in 2012, and 13.3% in 2011. The West Palm Beach submarket showed the highest increases in asking rent, 7.8%, accompanied by a drop in vacancy to 11%, compared to 14.2% in 2012. One center in this submarket is getting a major makeover with the addition of the popular Trader Joe’s, while the redevelopment of the former Palm Beach Mall into Palm Beach Outlets is proceeding, bringing Whole Foods Market as one of the
anchors, along with upscale value retailers such as Saks Off Fifth and Nordstrom Rack. But the submarket as a whole continues to struggle with a high vacancy rate, largely due to four boxes that remain vacant since 2012 or before. The Lake Worth submarket had the second highest increase in average asking rent, up 6.5% to $17.42. Still, Lake Worth has the lowest rent of any submarket, as it encompasses an area of relatively low income households. Lake Worth also has the highest vacancy rate of all submarkets, at 14.9%, despite the absorption of three boxes in 2013, by gym facilities and a value supermarket. Those gains were countered by other big box retailers that gave back space in this submarket, along with continued turnover of inline space.
Mile Streetscape At the other end of the spectrum isMiracle Boca Raton, which continued going strong in 2013, showing a 4.4% increase in average asking rent. The Boca submarket contains most of the county’s priciest properties, those that can command rents above the $30 mark. These centers are the minority on a countywide basis. Of 177 centers actively marketing inline space throughout the county at the time of the survey, only 18, or 10%, had asking rent of $30 or more. Of those 18, 12
are in the Boca Raton submarket, which includes a portion of northern Delray Beach. This area is getting a new Trader Joe’s and a new Fresh Market, both popular grocery chains, particularly among the more affluent population. The Delray Beach/Boynton Beach and the Jupiter/Tequesta submarkets both had decreases in average asking rent, 1.8% and 4.1% respectively, as many landlords in this submarket still contend with high-vacancy properties. While three formerly empty boxes were absorbed in Delray/Boynton, two of those were relocations that left newly vacant boxes behind, and a Home Depot Expo remains vacant. Jupiter/Tequesta, a relatively small submarket in the county’s northern fringes, continues to get new restaurants and a new Fresh Market store, but many of its centers still exhibit high vacancy.
“In every submarket there is at least one if not more properties with abnormally high availability, either because a planned redevelopment has stalled or because one or more anchor spaces haven’t been filled, or both.”
Wellington/Royal Palm Beach had a 2.9% increase in average asking rent, following an 8.5% increase in 2012. This is a noteworthy improvement, considering the submarket remains challenged with a high vacancy rate of 11%. While a former Albertson’s store was absorbed by a school, a Thomasville Furniture box became newly empty, as parent company Furniture Brands International filed Chapter 11 bankruptcy in September 2013. This was on top of five empty boxes the submarket is carrying from previous years. Nonetheless, the Wellington/Royal Palm Beach submarket has some of the most commercially viable demographics in the county. All told, however, Palm Beach County still exhibits doubledigit vacancy rates throughout most of the county, which reflects a situation highlighted in last year’s survey: In every submarket there is at least one if not more properties with abnormally high availability, either because a planned redevelopment has stalled or because one or more anchor spaces haven’t been filled, or both. Prior to 2008, those high-availability centers were few and far between.
New To Market
Noteworthy against the backdrop of a slow economic recovery and the county’s hop-scotch pattern of retail strength are several new-to-market stores and restaurants that have seized the opportunity to open for the first time in Palm Beach County, after signing leases in 2013. Popular California-based grocery chain Trader Joe’s, a junior-box user whose retail image is a combination of value and gourmet, has leased space for four stores: Delray Beach, Palm Beach Gardens, Wellington and Jupiter. Oklahomabased big-box chain Hobby Lobby, which sells crafts and home decoration items, will open its first South Florida store in Boca Raton, taking a former Beall’s space. Women’s fashion chain Madrag, based in New Jersey, took a former Linens N’ Things box in West Palm Beach. Pure Barre, one of the players in the current trend of ballet-type exercises, opened a location in Boynton Beach. In the restaurant sector, three new-to-market franchise chains in the fast-casual category will be serving the county: Garbanzo Mediterranean Grill and Aladdin’s Eatery each opened one location in the Boca Raton submarket; Pancheros Mexican Grill opened a location in Jupiter. Big-box retailers already in the market made some expansion moves as well. Aldi, LA Fitness, TJ Maxx, Ulta, Deal$, Planet Fitness, YouFit and Chuck E. Cheese each added one location in Palm Beach County, absorbing vacant boxes. Big Lots absorbed a vacant gym box with the relocation of one of its stores, while Pet Supermarket absorbed existing junior anchor space with the opening of three new stores, including a relocation. Gourmet grocer Fresh Market opened one store in Delray Beach, and is building another in Jupiter. Walmart opened one new Neighborhood Market store in 2013 in a former Winn Dixie space, is proposing a new one in the Boynton Beach area, and has two other Supercenters under construction, one of them on a previous TRENDS
Boca Raton Walmart location that had closed in 2008, and the other as an expansion of an existing store in Jupiter. (Detailed locations of new and proposed big-box stores are given in Submarket Analysis section.)
Only one new project opened within the past 12 months: Delray Marketplace, anchored by Publix and Frank Theaters, opened March 2013 in Delray Beach, at the intersection of Lyons Road and Atlantic Avenue. Meanwhile, a handful of new projects are on the horizon, some of which had been proposed a year ago, but still remain on pre-construction stages. One newly proposed project is Delray Place, a 115,000 square foot center to be anchored by Trader Joe’s, along Federal Highway on the northern fringes of Boca Raton. Village Green Center, a 61,500 square foot project that also will include Trader Joe’s, is under construction at 2773 S. State Road 7, in the periphery of the Mall at Wellington Green. Also in the Wellington/Royal Palm Beach submarket,
Total Inventory (sq. ft.)
Number Avg. Asking of Centers Rent 2013
another developer is proposing a shopping center of up to 80,000 square feet, on the SEC of U.S. 441 and Pioneer Road. Turnpike Crossing, with 60,000 square feet, is proposed on the NEC of Okeechobee Blvd. and the Florida Turnpike, in the West Palm Beach submarket. Shops at Indian Trails, a grocery-anchored shopping center of 107,000 square feet, is proposed at the SWC of Northlake and Coconut Boulevards, also in the West Palm Beach submarket. Harbourside Place, a mixed-use development that includes 55,000 square feet of retail, is nearing completion at the intersection of U.S. 1 and Indiantown Road in Jupiter. Palm Beach Outlets, an upscale outlet center that will total 900,000 square feet, is under construction on the site of the former Palm Beach Mall, at Palm Beach Lakes Blvd. and I-95. Finally, an unnamed shopping center of 60,000 square feet is proposed in the Delray Beach/Boynton Beach submarket, but no tenants have yet been announced. The county’s ratio of shopping center square feet per person as of year-end 2013 is 21 to 1, based on a total inventory of 28,870,238 square feet and an estimated population of 1,377,598. This compares to a Miami-Dade ratio of 12 to 1 and a Broward County ratio of 21 to 1.
Avg. HH Income
West Palm Beach
Wellington / Royal Palm Beach
Delray Beach / Boynton Beach
Jupiter / Tequesta
Palm Beach County
Decreased Household Incomes
Despite the ongoing economic recovery, household incomes haven’t recovered to pre-2008 levels. Palm Beach County’s average household income in 2014 is estimated at $69,573, lower than $72,573 in 2013. (Although higher than Broward County’s $66,091 and Miami-Dade’s $58,947.) All county submarkets showed decreases in average household incomes. Palm Beach County’s population is approximately 18% Hispanic and 15% African American, and median age is 44 years old.
SUBMARKET ANALYSIS: 1) BOCA RATON
This is the county’s largest submarket in terms of square footage and it is consistently the strongest, containing the most properties that are able to command rents above $30. Trader Joe’s will open two new stores in this submarket in 2014. New-to-market retailer Hobby Lobby will open in a former Beall’s space. TJ Maxx, Ulta and Big Lots also opened new stores. Still, the vacancy rate increased to 8%, compared to 7.6% in 2012, largely due to a leasing makeover of one of its centers, while a Winn Dixie and two Blockbuster Video spaces remain vacant. Average asking rent for inline space increased 4.4% to $29.47.
Proposed Projects: • Delray Place, a 115,000 square foot center anchored by Trader Joe’s, is proposed on the SEC of Linton Blvd. and Federal Highway. • Trader Joe’s will open in 2014 in East City Center, a 29,000 sq. ft. retail and office project on 855 S. Federal Highway, in downtown Boca Raton.
Redevelopments/Additions/Renovations: • Boca Village Square, on the SEC of St. Andrews Blvd. and Verde Trail North, demolished a portion of the shopping center to build a free-standing CVS and create new inline space. It has added Aladdin’s Eatery, Sicilian Oven Wood Pizza, Burger Fi and Smoothie King.
of Palmetto Park Road and U.S. 441, to replace a former Walmart store that had closed at the site in 2008.
Other Tenant Moves: Walgreens is relocating to an outparcel and new-to-market chain Performance Bicycle opened in Shadowwood Square, on the NEC of Glades Road and US 441. Dress Barn replaced Shoe Bazaar in Somerset Shoppes, on the NEC of Glades Road and Lyons Road. Chase Bank took a former Blockbuster space in Delray Town Center, on the NEC of Linton Blvd. and Military Trail. Tijuana Flats and First Watch Café opened in Mission Bay Plaza, on the NWC of Glades Road and US 441. Tijuana Flats and Brooklyn Water Bagel opened in Palms Plaza, on the SWC of Palmetto Park Road and Powerline Road. Garbanzo Grill will replace Baja Fresh in Garden Shops at Boca Raton. Denny’s closed in Westwinds of Boca, on the SEC of Glades Road and US 441, while Great Clips and HearX opened in this center. Yoblendz closed in Mission Bay Plaza, on the NWC of Glades Road and US 441. GNC replaced Vitamin World, Allstate replaced Suntrust, and Verizon closed in Polo Club Shoppes, on the SWC of Champion Blvd. and Military Trail. Subway opened three locations: in Glades Plaza North, on the SWC of Glades Road and NW 22nd Ave., where it replaced Cold
Anchor Moves: • Hobby Lobby will replace Bealls in West Boca Square, on the NWC of Palmetto Park Road and US 441. • LA Fitness will replace Regal Cinema, TJ Maxx replaced Staples and Ulta replaced Floral Supply Mart in The Plaza at Delray, on the NWC of Linton Blvd. and Federal Highway. • Big Lots replaced former Albertson’s in Delray Town Center, on the NEC of Linton Blvd. and Military Trail. • Pet Supermarket replaced Walgreens in Polo Club Shoppes, on the SWC of Champion Blvd. and Military Trail. • Walmart Neighborhood Market is under construction on the former Level 5 Fitness site in South Delray Shopping Center, on the NEC of Lindell Blvd. (Ave. L) and Federal Highway. • Walmart Supercenter is under construction on the SEC TRENDS
Stone Creamery; in Delray Town Center, on the NEC of Linton Blvd. and Military Trail, and in Boca Valley Plaza, on Federal Highway between Yamato Road and Linton Blvd. Hair Cuttery replaced Great Florida Bank in Fifth Avenue Shops, on the NEC of Federal Highway and NE 20th Street. Bella Salon Suites took a former Blockbuster space in Boca Valley Plaza, on Federal Highway, midway between Yamato Road and Linton Blvd. Boost Mobile will replace Jillybeanâ€™s Closet in Sandalfoot Square, on the NEC of US 441 and Marina Blvd. Vitamin Center replaced former Allstate space at Bocaray Plaza, on the SEC of Linton Blvd and Military Trail. Smoothie King will open in Boca Village Square, on the SEC of St. Andrews Blvd and Verde Trail North.
Vacant Boxes: Winn Dixie (38,614 sf ) in Camino Square, at 291 W. Camino Real. Demographics: The Boca Raton submarket has an estimated 2014 population of 239,311, and is projected to grow 3% in the next five years. The population is 14% Hispanic and 2% African American. Median age is 49 and average household income is $82,652
lower than $87,907 a year before. Estimated daytime population is 134,467. Population in this submarket has grown between 1% and 2% since 2010.
2) DELRAY BEACH/ BOYNTON BEACH
Although occupancy improved slightly in this submarket, average asking rent in 2013 dropped 2% to $21.17, one of two submarkets to exhibit a dip in rent. The submarket still suffers from a high vacancy rate â€“ 13% in 2013 compared to 15% in 2012 -- largely due to empty boxes. While three formerly empty boxes were absorbed, two of those were relocations that left newly vacant boxes behind, and a Home Depot Expo remains vacant. New development has brought an upscale lifestyle center (Delray Marketplace), while one shopping center added a new Fresh Market store. Walmart plans its third new store in this submarket, after opening two in recent years. A 60,000 sf shopping center is proposed in Boynton Beach, but no anchors have been announced.
proposed projects: A new shopping center of 60,000 sq. ft. is proposed on the NW corner of Boynton Beach Blvd. and Hagen Ranch Road. Projected opening is third quarter 2015. Completed Projects: Delray Marketplace, a mixed-use project that includes a 258,000 square foot lifestyle center anchored by Publix and Frank Theaters, opened in March 2013. The project is at the NW corner of Atlantic Ave. and Lyons Road Extension. Anchor Moves: • Big Lots relocated to Delray Town Center, on the NEC of Linton Blvd. and Military Trail, from Delray Square II, on the NEC of Atlantic Avenue and Military Trail. • Pet Supermarket relocated from Meadows Square, on the SWC of Hypoluxo Road and Congress Avenue, to a former World Gym space in Boynton Lakes Plaza, on the SEC of Hypoluxo Road and Congress Avenue. • Deals opened in Hypoluxo Village, on the SWC of Hypoluxo Road and Military Trail, taking a portion of a former Albertson’s space. • Fresh Market is scheduled to open Feb. 2014 in Harbor Plaza, on the NEC of Federal Highway and Linton Blvd.
Wearhouse closed in Boynton Commons, on the SWC of Congress Avenue and Old Boynton Road. GNC and Pure Barre (a new fitness center focused on ballet bar exercises) opened in Sunshine Square, on the SWC of Woolbright Road and Federal Highway. Chase Bank will build a branch in an outparcel of Harbor Plaza, on the NEC of Federal Highway and Linton Bvld. PNC Bank closed in Atlantic Square, on the SEC of Jog Road and Atlantic Ave. Firehouse Subs will open in Boynton West Shopping Center, on the NWC of Boynton Beach Blvd and Military Trail. Salon Roulan replaced Starbucks in Charleston Square, on the SWC of Hypoluxo Road and Jog Road. BB&T closed and Boost Mobile will replace a florist in Kings Point Shopping Center, on the SWC of Atlantic Avenue and Jog Road. Pinch A Penny will open in Marketplace of Delray, on the NWC of Atlantic Avenue and Military Trail. Denny’s closed in Oakwood Square, on the SEC of Old Boynton Road and Congress Avenue. Papa John’s opened in Peachtree Plaza, on Atlantic Avenue, midway between Military Trail and Jog Road. Quizno’s closed in Riverwalk Shopping center, on the SEC of Woolbright Road and Federal Highway. Great Clips opened in Village Square at Golf, on the NEC of Woolbright Road and Military Trial. Aglioglio Italian Bistro replaced Friendly’s Restaurant in Shoppes of Boynton, on the NEC of Gateway Blvd. and Congress Ave.
• Walmart Neighborhood Market opened in a former Winn Dixie space in Boynton Trail Center, on the NEC of Boynton Beach Blvd. and Military Trail. Walmart also is proposing a 41,000 sq. ft. Walmart Neighborhood Market on the NEC of Military Trail and Coconut Lane.
Vacant Boxes: Big Lots (30,000 sf ), World Gym (26,000 sf ), and former Jewish Community Center (50,720 sf ) in Delray Square II, on the NEC of Atlantic Avenue and Military Trail. Former Publix (39,795 sf ) in Meadows Square, on SWC of Hypoluxo Road and Congress Ave. Home Depot Expo (88,004 sf ) in Shops of Woolbright, on the NW corner of Woolbright Road and I-95.
Other Tenant Moves: Orangetheory Fitness and Mathnasium opened, while Men’s
Demographics: The Delray Beach/Boynton Beach submarket has an estimated 2014 population of 272,229, and is TRENDS
projected to grow 6% in the next five years. The population is 19% African American and 11% Hispanic. Median age is 53, the oldest of all submarkets, and average household income is $64,401, lower than $65,772 a year before. Daytime population is 68,073. Population in this submarket has grown 5% since 2010.
3) LAKE WORTH
Occupancy increased in this submarket again in 2013, its vacancy rate dropping to 14.9%, compared to 16% in 2012. Average asking rent also increased to $17.42, up 6.5% from $16.36 in 2012. Aldi, Planet Fitness and YouFit opened boxes that absorbed large vacant spaces, and Pet Supermarket took a former Blockbuster Video box. However, Lake Worth still has the highest vacancy rate of any submarket, including a mattress store box that closed and an Office Depot that gave back space.
Anchor Moves: • Aldi replaced La Reina supermarket in Palm Springs Plaza on the SWC of 10th Ave. North and Congress Ave. • Planet Fitness replaced Staples in Lake Worth Plaza West, on the SEC of Lake Worth Road and Jog Road. • YouFit will open in Greenacres Plaza, on the NWC of Lake Worth Road and Jog Road.
Delray Market Place 30
• Mattress & Furniture Superstore closed in Nassau Square, on the NWC of Lake Worth Road and Nassau Road. • Office Depot is giving back a portion of its space (14,000 sq. ft.) at Office Depot Plaza, on the SWC of Lake Worth Road and Military Trail.
Other Tenant Moves: Family Dollar relocated from Lantana Village Square, on the NWC of Hypoluxo Road and Dixie Highway, to a freestanding location at 1199 Hypoluxo Road. Pet Supermarket replaced Blockbuster Video in Southdale Shopping Center, on the SWC of Southern Blvd. and Lake Ave. Chipotle Mexican Grill and Sport Clips opened in Lantana Square Shopping Center, on the SWC of Lantana Road and Jog Road. Goodwill Donation Center replaced America’s Health Choice in Nassau Square, on the NWC of Lake Worth Road and Nassau Road. Subway closed in River Bridge Centre, on the SWC of Forest Hill Boulevard and Jog Road. Medical Supply & Mobility replaced Rainbow in River Bridge Centre, on the SWC of Forest Hill Boulevard and Jog Road. Mission Lakes Dental replaced Payless Shoe Source in Shops at Mission Lakes, on the NEC of State Road 7 and Lantana Road. CrossFit opened in Shops at Mission Lakes, on the NEC of State Road 7 and Lantana Road. Carvel replaced Jewelry & More in Trafalgar Square, on the SEC of Forest Hill Boulevard and Jog Road. Subway replaced Quizno’s in Trafalgar Square, on the SEC of Forest Hill Boulevard and Jog Road. Deals closed in Woodlake
Plaza, on the NEC of Lake Worth Road and Sherwood Forest Boulevard. Friendly’s closed in Greenwood Shopping Center, at 1700 S. Congress Ave.
4) WELLINGTON /ROYAL PALM BEACH
This submarket continued to recover in 2013, with a 2.9% increase in average asking rent, now at $21.79. That Other Vacant Boxes: follows an 8.5% increase in 2012. New construction near Winn Dixie (32,000 sf ) in Trafalgar Square, on the SEC of the Mall at Wellington Green is bringing a Trader Joe’s Forest Hill Blvd. and Jog Road. Winn Dixie (42,000 sf ) in store in 2014, while another shopping center remains Lake Worth Plaza West, on the SEC of Lake Worth Road and proposed along U.S. 441. Vacancy remained virtually flat Jog Road. Former Office Depot and former Ames (combined at 10.8%, compared to 11.1% in 2012. Despite absorption of 78,694 sf ) in Atlantis Plaza II, on the east side of Congress a former Albertson’s store Avenue just south of by a school, five other Lantana Road. Bealls and “New construction near the Mall at Wellington boxes remain vacant, MVP Sports (combined a Thomasville 47,500 sf ) at Palm Springs Green is bringing a Trader Joe’s store in 2014, while Furniture store closed, Plaza, on the SW corner while another shopping center remains proposed as part of its parent of 10th Avenue North and along U.S. 441.” company’s bankruptcy Congress Avenue. filing. This submarket’s demographics are among Demographics: the strongest in the county, but competition has intensified The Lake Worth submarket has an estimated population with ample new construction over the past decade. of 290,015, and is projected to grow nearly 5% in the next five years. The population is 39% Hispanic and 16% African Proposed Projects: American. Median age is 39, and average household income is • Village Green Center, a 61,500 square foot project, is adding $55,950, lower than $58,138 a year before. Daytime populaa Trader Joe’s in 2014. The center is under construction at 2773 tion is 62,879. Population in this submarket has grown more S. State Road 7, in the periphery of the Mall at Wellington than 3% since 2010. Green.
West Palm Beach
Boca Raton TRENDS 31
• An unnamed retail project of up to 80,000 square feet is proposed on the SEC of State Road 7 and Pioneer Road.
Anchor Moves: • Renaissance Charter School replaced Albertson’s in Village Center Shoppes, on the NWC of Southern Blvd. and Forest Hill Blvd. • Thomasville Furniture closed in The Pointe at Wellington Green, on the SWC of Forest Hill Blvd. and State Road 7.
Other Tenant Moves: Edwin Watts Golf is closing in Shoppes of Wellington Green, on the SWC of Forest Hill Blvd. and State Road 7. Massage Envy and Orangetheory Fitness opened in Wellington Green Commons, on State Road 7, south of Forest Hill Blvd. AIO Wireless and Lindburgers opened in Courtyard Shops at Wellington, on the SEC of Wellington Trace and Greenview Shores Blvd. Citibank and On the Border Mexican Grill & Cantina closed in Southern Palm Crossing, on the NWC of Southern Blvd. and Lamstein Lane. On the Border was replaced by Aleyda’s Restaurant. YouFit replaced Fitness Works in Wellington Marketplace, on the NEC of Wellington Trace and Greenview Shores Blvd. Hair Cuttery closed in Marketplace at Wycliffe, on the NWC of Lake Worth Road and State Road 7. Sport Clips replaced a Martial Arts school in The Pointe at Wellington Green. Other Vacant Boxes: Winn Dixie (51,282 sf ) in Grove Market Shopping Center, at 5060 Seminole Pratt-Whitney Road. Winn Dixie (44,914 sf ) in Marketplace at Wycliffe, on the NWC of Lake Worth Road and State Road 7. JoAnn Fabrics (20,000 sf ) in Village Shops on 441, on the NWC of Southern Blvd. and U.S. 441. Circuit City (39,621 sf ) in Shoppes of Wellington Green, on the SW corner of Forest Hill Blvd. and U.S. 441. Toys R’ Us (49,160 sf ) in Commons at Royal Palm, at 511 State Road 7. 32
Demographics: This submarket has an estimated 2014 population of 174,448, and is projected to grow 8% in the next five years. The population is 24% Hispanic and 22% African American. Median age is 39 and average household income is $75,475, lower than $76,825 a year before. Daytime population is 52,443. Population in this submarket has grown more than 7% since 2010.
5) WEST PALM BEACH
Vacancy in this submarket decreased to 11% in 2013, compared to 14.2% in 2012. Mad Rag (33,546 sf) absorbed a former Linens N’ Things, reducing big box availability, while redevelopment of another center is bringing the popular Trader Joe’s and a new Ulta Cosmetics. Average asking rent increased to $22.34, up 7.8% from $20.73 in 2012. The development of Palm Beach Outlets is proceeding, with a scheduled opening in early 2014. Two other new projects that have been proposed for more than a year remain on the drawing board, while BJ’s Wholesale Club continues trying to get approval for a two-story store.
Proposed Projects: • Shops at Indian Trails, a 107,000 square foot center anchored by a grocery store, is proposed at the SWC of Northlake and Coconut Boulevards. • Palm Beach Outlets, an upscale outlet center that will total 900,000 square feet, is under construction on the site of the former Palm Beach Mall, at Palm Beach Lakes Blvd. and I-95. The first phase, with some 100 stores, is projected to open in February 2014, and will include Saks Off Fifth, Gap Factory Store and Banana Republic Factory Store. A second phase of big-box stores will follow, including Whole Foods Market and Nordstrom Rack. Completion of the entire center is projected by 2015. • Turnpike Crossing, with 60,000 square feet, is proposed on the NEC of Okeechobee Blvd. and the Florida Turnpike.
Redevelopments, Additions, Renovations: • PGA Plaza is undergoing a redevelopment that includes the addition of Trader Joe’s and Ulta Cosmetics. • BJ’s Wholesale Club is proposing a two-story, 80,000 square foot store in the former Loehmann’s Plaza, on the SWC of PGA Blvd. and RCA Blvd. The proposal is meeting with opposition from Palm Beach Garden’s city council.
Anchor Moves: • Publix replaced Winn Dixie in Belmart Plaza, on the SEC of Belvedere Road & Georgia Ave. • GFS Marketplace and Goodwill opened in Gulfstream Plaza, on the NEC of Okeechobee Road and Haverhill Road. • Chuck E. Cheese will open in a portion of former Ashley Furniture in Westward Plaza, on the NEC of Okeechobee Blvd. and Spencer Drive. • Madrag replaced Linens N Things in Cross County Shopping Center, on the SEC of Okeechobee Blvd. and Military Trail.
Other Tenant Moves: Blockbuster Video closed in Crosstown Plaza, on the SWC of Military Trail and Community Drive, one of the few Blockbuster locations that was left. PDQ Fresh Tenders, Salads,
Sandwiches replaced Fire House Grill in Okee Square, on the NWC of Okeechobee Blvd. and I-95. Edible Arrangements will open in Palm Beach Marketplace, on the SWC of Okeechobee Blvd. and I-95. Lenscrafters closed in Palm Beach Marketplace, on the SWC of Okeechobee Blvd. and I-95, and replaced For Eyes Optical in Pine Trail Square, on the SWC of Okeechobee Blvd. & Military Trail. A Verizon outparcel replaced Mobil Gas Station Westward Plaza, on the NEC of Okeechobee Blvd. and Spencer Drive.
Other Vacant Boxes: Portion of Winn Dixie (22,300 sf ) in Shoppes at City Centre (fka North Palm Marketplace), on 11241 U.S. Highway 1. United Artists 10 movie theater (26,000 sf ) in Okee Square, on the NWC of I-95 and Okeechobee Blvd. Demographics: This submarket has an estimated 2014 population of 272,379, and is projected to grow 6% in the next five years. The population is 32% African American and 19% Hispanic. Median age is 41 and average household income is $62,071, lower than $65,978 a year before. Daytime population is 146,932. Population in this submarket has grown between 4% and 5% since 2010.
Fresh Market will anchor a redeveloped shopping center, and new, popular eating places have staked locations in this submarket. A former Sound Advice box remains vacant, as do three former Blockbuster spaces. Although vacancy dropped to 9.7%, from 12.2% a year before,
average asking rent also dipped 4% to $19.56, from $20.40 a year before.
Proposed Projects: • Harbourside Place, a mixed-use development that includes 55,000 square feet of retail, is nearing completion at the intersection of U.S. 1 and Indiantown Road. Redevelopments, Additions, Renovations: • Fisherman’s Wharf Shoppes, at 311 E. Indiantown Road, will demolish a portion of the shopping center and build a 25,000 sq. ft. building that will contain Fresh Market. • Chasewood Plaza, on the SEC of Indiantown Road and Central Blvd., is adding 12,600 square feet in two new outparcel buildings for Chipotle Mexican Grill, Dunkin Donuts and AT&T.
Anchor Moves: • Marshalls and HomeGoods will replace Stein Mart in Tequesta Shoppes, on the NEC of U.S. 1 and Waterway Road. • Walmart is expanding its store at 2144 W. Indiantown Road into a Supercenter, adding a 36,720 square foot grocery component.
Tenant Moves: Orangetheory Fitness opened two locations: Chasewood Plaza, on the SEC of Indiantown Road and Central Blvd., and Mirasol Walk, on the NWC of the Florida Turnpike and PGA Blvd. Pancheros Mexican Grill opened in Abacoa Plaza, on the NWC of Donald Ross Road and Military Trail. Subway opened in Countyline Plaza, at 660 North U.S. 1, in Tequesta. Vacant Boxes: Sound Advice (24,000 sf ) in North Beach Plaza at 12089 U.S. Hwy. 1. Demographics: This submarket has an estimated 2014 population of 129,216, and is projected to grow 7% in the next five years. Median age is 47 and average household income is $91,323, lower than $95,213 a year before. The population is 12% Hispanic and 3% African American. Daytime population is 51,243. Population in this submarket has grown 6% since 2010.
SURVEY PARAMETERS This is the 18th annual Palm Beach County report on shopping centers, based on a two-phase survey of centers of 50,000 square feet or more, excluding regional enclosed malls and lifestyle centers. The phone and field survey were completed in December 2013. Average rental rates are weighed asking net rates on available inline space only. Total inventory includes the gross leaseable area on the ground floor only.
Terranova Corporation , Florida’s leading full-service commercial real estate advisory firm, is involved with over $1 billion in commercial real estate assets for its clients and its own portfolio. With a broad list of partners and clients, Terranova’s comprehensive array of services includes leasing, highstreet retail, asset management, acquisitions/joint ventures, tenant representation, and dispositions. Services are offered to a select group of partners/clients who count on us to maximize the value of their real estate.
Terranova’s recent activities: • Joint ventured with Acadia Realty Trust in the $139 million acquisition of a three-building, 60,000 sq. ft. portfolio on Lincoln Road in Miami Beach, FL. It was the largest retail acquisition in Florida in 2012, and added to the joint venture’s existing portfolio of three other Lincoln Road buildings, making it the largest retail owner on Lincoln Road.
• Represented landlord in a 10-year, 12,899 square foot lease with Learning Experience on the ground floor of Vizcayne, a new 49-story condominium at 244 Biscayne Blvd. in downtown Miami, and in an additional 6,500 square feet for various other tenants including 100 Montaditos and Orangetheory Fitness.
• Represented landlord in a 16,510 square foot deal with Walgreens for an outparcel location in Shadowwood Square, Boca Raton, FL
• Represented landlord in a 5-year lease with Performance Bicycle for its first South Florida location, a 7,125 square foot store in Shadowwood Shopping Center, in Boca Raton, FL.
• Represented landlord in a 15-year lease with Epicure Gourmet Market for 24,000 square feet at 4585 Ponce, a mixed-use project in Coral Gables, FL. • Represented landlord in three deals totaling 23,410 square feet in Gateway Town Center, Jacksonville, FL. The leases were with Youfit Health Clubs, urban apparel chain DTWN, and cellphone service provider Boost Mobile. • Represented landlord in a 6,981-square foot lease with Duffy’s Sports Grill in Cocowalk, Coconut Grove, FL. • Represented tenant BurgerFi in a lease for a 1,933 square foot restaurant in Tower Shops in Davie, FL, and for a 2,616 square foot space on Miracle Mile, Coral Gables, FL. Terranova also represented the landlord in the Miracle Mile transaction. Represented tenant Giardino Gourmet Salads in a 1,000 square foot lease at Park Center, Miami Lakes, FL. • Represented landlord in deals with five tenants – Weichert Realtors, Firehouse Subs, CPR Cell Phone Repair, Pines Diagnostic Imaging, and Sprint franchise Communications to Go -- for a total of more than 10,000 square feet in Paraiso Plaza, Pembroke Pines, FL.
• Represented landlord in a 2,500 lease with 100 Montaditos, 1,250 square foot lease with European Wax Center and a 672 square foot lease with Blow N Bounce in Suniland Shopping Center, Pinecrest, FL. • Represented landlord in a 20-year lease with Chase Bank to build a new 4,370 square foot branch with drive-thru on an outparcel in Polo Club Shoppes, a Publix-anchored center in Boca Raton, FL. • Represented landlord in a 5-year lease with Brazilian shoemaker Melissa Shoes for 900 square feet, a 5-year lease with Argentinian gelato chain Freddo Gelato for 1,100 square feet, and a 7-year lease with Armani Jeans for 3,700 square feet, all three on Lincoln Road, Miami Beach, FL. • Completed a $22.5 million refinancing of Suniland Shopping Center in Pinecrest, FL, unlocking the added value from renovations and new tenancy at the 82,000 sq. ft. shopping center, which had been bought in mid-1990s for $10.4 million. • Completed an $84 million refinance with Bank of America for a portfolio of retail properties on Lincoln Road, Miami Beach, FL, and a $15 million refinance, also with Bank of America, for Palm Plaza, a shopping center in Miami, FL. TRENDS
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w w w.i m oto p al m b ea cTRENDS h.c o m 37
A day in the life of your (un)common
neighborhood shopping plaza Experience Shadowwood Square with our Managing Editor Kristin Clark By Kristin Clark
all have them, y o ur g o -to standard s h o ppi n g p l aza around the c orner or on t h e w a y h o m e fro m t he off ice, where yo u s w i n g b y, p erh a p s dai l y , for y ou r grocer y fix or dry cl ean p i ck-up . Have y o u ever th ought of furt h er e x p l ori n g t h at ver y same p laza beyond y our us ua l sto p s ? Tr ust m e , I ’m r i gh t t here with you, I typ i ca l l y don ’t ta ke a se c ond g lance at what ’s ne x t to P ub l i x , not to m enti on w h at may b e around t h e corner. B ut b e i n g f a i r ly ne w to the team here at Terranova Cor p orat i on, I f elt it was my duty to tr ul y e x p eri en ce o ur tenants and see first-hand what ’s ava i l a b l e to t h e ever y da y c onsu m er who drives t h roug h o ur p l a za . To my surprise, I ended up spending the entire day on-site, interacting with a variety of businesses. And when I say, entire, I mean the entire day - about nine hours. I’m not your typical real estate broker who’s versed in market normalcies like square footage, tenant locations or rent factors, I’m just your average female consumer strolling the sidewalks in search of a quick bite to eat or mani/pedi session. Once I took the time to really walk the shopping center, I was in awe of not only the number of businesses centralized in one area, but the uniqueness that each of them brings to the mix. Who knew the (un)common plaza was so jammed packed with actual fun activities – and all in one place for my convenience.
MOR N I N G Starbucks – I start here because everyone needs a little good-morning pick me up. Starbucks has become somewhat of a lifestyle staple, so it was perfect being able to pop in and order my usual ‘tall, Caramel Frappuccino, light, with soy – no whip, but light drizzle’ and catch up on a couple emails prior to my next appointment. I’m always impressed with baristas, it’s almost like speaking another language with how much drink lingo they’re required to know. Fingers, Faces & Toes – Appointment or not, Fingers, Faces & Toes is a no-fuss salon that offers the works when it comes to nail grooming. The whole polish selection aspect is always the hardest decision when I’m getting a mani/pedi, especially when the pressure is on to choose a suitable-butstylish color while the nail technician needs to get started. Ladies know what I mean. Fortunately for me, the ladies at Fingers, Faces & Toes graciously waited as I agonized over my options: deep red, cherry red, white and grey. After opting for a neutral grey polish, very on trend for spring, I settled into the pedicure station area, complete with coffee order in hand, to a relaxing foot and leg message, followed by a soothing manicure.
AF T E R N O O N Einstein Bagels – Truth be told, I think Einstein has the best bagels, hands down. I actually had an (extremely) small stint working at Einstein’s
Florida State University campus location, and while the free food was a great perk for a poor college student, the fact that I smelled of asiago cheese bagel the remainder of each shift day was a bit off putting. Even though my career path did not involve the popular franchise, my opinion of their bagels’ superiority stands. Einstein’s location at Shadowwood accommodates both indoor and outdoor seating, along with WiFi. And while we all know bagels are typically served as a morning delight, Einstein makes a killer chicken salad sandwich (among others) that is increasing its lunchtime audience tremendously. A variety of hot, iced, and blended coffee and fruit beverages are also available for pairing with your bagel or sandwich. Performance Bicycle – When was the last time you actually rode a bike? The sport of indoor cycling (spinning) and certainly outdoor biking is quite popular in Boca Raton. The weather is nice year round, so the climate lends itself as a natural fit for outdoor enthusiasts. Hence the reason North Carolina based Performance Bicycle decided to open one of its first Florida locations right here in Boca Raton. Now, I wasn’t interested in buying a bike during my visit, but the store houses at huge selection of top quality bikes for beginners to
A day in the life
professionals alike. The staff was so friendly, allowing me to make a fool of myself riding around the main store aisle, testing out a few models and getting educated on the differences when it comes to price and features Tutti Frutti – Staying on the health kick, Tutti Frutti is one of the best (in my opinion) fro-yo chains in South Florida. Naturally, I couldn’t pass up a visit. They offer a mix of dairy-free and milk-based options to choose from, but we all know it’s really about the toppings. Fruit, chocolate, candy and multiple syrups, it’s like an unattended sweets factory in here! I opted for a fruity flavor topped with fresh fruit, perfect as a mid-day snack that’s actually a healthier sweet tooth cure.
Old Navy –If you’re on the hunt for a new casual look, Old Navy has really been picking up the pace recently. I popped in the store to see what the affordable retailer was showcasing for the upcoming spring and summer seasons – absolutely adorable. Everything from stripes galore in every style shirt imaginable to sequin tank tops and designer imitation pointed flats. The mega endcap store at Shadowwood is certainly a luring spot for consumers in the area and I can see why: It’s tough to beat trendy looks at great prices.
A day in the life
EV E N I N G Darque Tan – The beauty of getting an indoor tan is that timing is really no obstacle. Rain or shine, daylight or dark, customers looking to add a little glow to their skin are in business. I personally prefer to tan in the evening because, for one, it’s not interfering with my day, and secondly, a tan (whether UV based or spray) should sit on your skin for at least a few hours before being washed off. Darque Tan offers several tanning options, including two different spray tan techniques, which is quite rare in the tanning industry. Most people are extremely loyal to a specific tanning brand or solution, so it’s fun for customers to have the option to experiment with both. From past experience, I prefer the Mystic Tan method, so I went in for a ‘level 2’ spray with bronze boost and aromatic additive. My skin glowed for days, in a good way!
Walgreens – This booming drugstore chain doesn’t really need a ‘time slot’ in the day - it is open 24 hours. The Shadowwood Walgreens is located smack in the middle of the plaza, making it truly convenient at any time throughout the day. I decided to pick up a few new shades of lipstick to freshen my look prior to heading to the movies. Walgreens never disappoints in the health and beauty department, they make it a point to constantly have an influx of the latest colors, scents and trending items you need to have in your bathroom; or better yet, your purse, for us women. Shadowwood 16 – Sometimes you need to take a break, relax, unwind and detach from all forms of mobile communication, as they so kindly remind you about ten times prior to the start of any show. A matinée movie break, or movie date night is the perfect solution. The cinema at Shadowwood has all the accommodations one would expect: concessions, stadium seating – soon to be upgraded to luxury 42
leather in a short couple months – and the latest Hollywood releases to keep you entertained and unplugged, for at least a couple of hours. sybarite Pig – Need a night cap from your busy day at the plaza? Pull up a chair or stool and have a seat at the Sybarite Pig for a drink…or three. It’s honestly one of the coolest places I’ve come across in a while, and I was shocked to find it in a shopping plaza. They boast an enormous assortment of craft beer from across the country, which can be paired with a small menu of ‘craft food’. Items like pickled beets smothered in goat cheese and authentic braised pork served on a cutting board will entice your senses and perhaps tantalize your taste buds to experience different beer flavor combinations. It’s much like a wine
and cheese pairing, with more of a hipster twist. Plus, if you’re in the mood for something even tougher to find, once a month the bar hosts a ‘beer pot-luck’ of sorts. Locals can actually bring in rare (even collectible) beer varietals to share and sample with others. Pretty cool concept and something the locals have certainly come to know well and enjoy. During my visit the place was full of local residents just getting off work and wanting to swing in for a quick chug and chat. And there you have it - my full day adventure at Shadowwood Square in Boca Raton. There’s certainly more than meets the eye at your local shopping center, as I discovered here at Shadowwood. It’s not just about the grocery anchor or convenient drug store, but also the independent business owner who recently launched his or her own boutique or the national chain that decided to make an investment in the area. New retailers and businesses are entering the local marketplace every day. There is a strong chance something unique is right around the corner – perhaps where you never even thought to look!
you’re in good company at Shadowwood Square located at 9789 GLADES ROAD, BOCA RATON, FL 33434 TRENDS
welcome to paradise from
where mermaids, surf babes & pretty young things all shop
C. OrriCO 336 South County Road, Palm Beach, FL 33480 561-659-1284 www.corrico.com
TERRANOVA RETAIL PROPERTIES
Published on May 7, 2014