TODAY’S HIGHLIGHTS
March 11, 2015
MARKET STREET EAST – MALL TO THE HALL
Jeff Gammage, The Philadelphia Inquirer
“This is the time. This is the place.”
The corridor from Independence Mall to City Hall, a
12-minute walking distance that covers “sixth-tenths
of a mile and 300 years of history”, is poised to take
off in the revival of the city.
“We’re seeing a lot of retail activity — finally,” said
Larry Steinberg, SVP at CBRE. Target Express is
coming just south and development companies are
looking at the place as a new opportunity.
However, some questions remain.
Read more at Philly.com.
Source: Chris Fascenelli, March 2015.
RECOMMENDED READING:
A closer look at the disruptive tremors of real estate –
Ernst & Young: Trends in Real Estate Private Equity
© 2015, CBRE, Inc.
NATIONAL NEWS
CBRE IN TALKS TO BUY JOHNSON
CONTROLS UNIT
LARGEST MALL IN THE NATION PROPOSED
FOR MIAMI-DADE
By Peter Grant on March 5, 2015
By Douglas Hanks on March 6, 2015
CBRE is negotiating to buy Global Workplace
Solutions, the division of Johnson Controls Inc. that
manages “1.8 billion square feet of corporate real
estate globally.” “The business provides on-site staff
for managing and maintaining commercial
buildings.” Analysts have estimated the value of the
business was “between $600 million and $1.5
billion.”
Triple Five, the company that owns and runs the
largest mall in America, wants to build a bigger one in
northwestern Miami-Dade. The project, American
Dream Miami, is proposed for land at the intersection
of Florida’s Turnpike and Interstate 75 near Miami
Lakes. “It’s projected to cost as much as $4 billion to
build and employ 25,000 people once opened, more
than enough to give it Miami-Dade’s largest privatesector payroll.”
Read more at Wall Street Journal.
SIMON PROPERTY BIDS FOR MACERICH,
AND RICH SHOPPERS
By Robbie Whelan on March 10, 2015
Source: Miami Herald, March 2015.
Read more at Miami Herald.
DOLLAR GENERAL EXPANDS FOOTPRINT
WITH ENTRY INTO THREE NEW STATES
Source: Wall Street Journal, March 2015.
By Mike Troy on March 9, 2015
Simon Property Group Inc., the largest mall owner in
the U.S. with 190 properties, launched a $16 billion
unsolicited bid for Macerich Co., which owns 59
shopping centers, as it seeks to gain scale amid an
oversupply of retail space and changing habits of U.S.
shoppers. “The total price tag, including the
assumption of debt, is $22.4 billion.”
“Dollar General isn’t letting its failed bid for rival
Family Dollar slow its momentum.” According to its
announcement on Saturday, March 7, Dollar General
is entering three new states: Oregon, Maine and Rhode
Island. The expansion will give it stores in a total of 43
states nationwide with more than 11,700 stores.
Read more at Wall Street Journal.
Read more at Chain Store Age.
Page 2
© 2015, CBRE, Inc.
CBRE Retail Newsletter: MARCH
CBRE RESEARCH
REGIONAL NEWS
BLOOMINGDALE'S PHILLY-AREA PLANS
NEW PAYMENT TECH: SEPTA’S KEY SYSTEM
By Joseph N. DiStefano on March 9, 2015
By Jim Saksa on March 9, 2015
SEPTA is going green by scrapping its token, ticket and
transfer system for the single SEPTA Key fare card
system. It’s also considered as a saving strategy as
“the magnetic strip passes used for daily, weekly and
monthly passes cost SEPTA $733,000 annually. Tickets
and on-board fare receipts for the regional rail cost
$150,000 a year. In total, SEPTA will save well over
$1.2 million a year just in material costs.”
Source: MSC Retail, March 2015.
MSC Retail has spread the word that Bloomingdale’s
is “actively looking” for space between 120,000
square feet and 150,000 square feet for a “full line”
store within Center City. The Gallery may be a good
option, but is it really strategic for Bloomingdale's to
add stores in this digital-shopping age?
Read more at Plan Philly.
33-STORY LANDMARK TOWER RECEIVES
ALLENTOWN PLANNING APPROVAL
By Edward Sieger on March 10, 2015
Read more at Philly.com and Philadelphia Magazine.
ZONING CODE CHANGES WOULD HELP
GUIDE REDEVELOPMENT OF FORMER
INDUSTRIAL SITES
By Jared Brey on March 9, 2015
Two city councilmen are proposing changes to a new
zoning classification called Industrial Residential
Mixed-use (IRMX) that was created in 2012 to
encourage the redevelopment of former industrial sites
into mixed-use residential projects.
Source: Ascot Circle Realty, LLC, March 2015.
“The changes would require IRMX projects to include
non-residential uses, incentivize artisan or lightindustrial uses, reduce the maximum lot coverage, and
ease parking and loading regulations.”
“Developer Bruce Loch proposes Landmark Tower, a
33-story retail, office and residential building, at South
Ninth and Walnut streets in Allentown. The project
would include two floors of retail space, 24 floors of
office space and seven floors of residential. At 420
feet, Landmark Tower would be the tallest building in
the state outside of Philadelphia and Pittsburgh.” On
Tuesday, March 10, the Allentown Planning
Commission approved the plans.
Read more at Plan Philly.
Read more at Lehigh Valley Live.
Page 3
© 2015, CBRE, Inc.
CBRE Retail Newsletter: MARCH
CBRE RESEARCH
REGIONAL URBAN NEWS
ROLAND KASSIS TRANSFORMING
FISHTOWN INTO HIP HAVEN
SIX PHILLY DEVELOPMENT PROJECTS THAT
ARE SPRINGING FORWARD
By Inga Saffron on March 6, 2015
By James Jennings on March 10, 2015
Roland Kassis at Domani Developers, who has
collected “a million square feet of property mainly in
old manufacturing buildings along Frankford Avenue”
is getting ready for another challenge — a hotel in
Fishtown within the next three years.
Some of Philly’s biggest projects are making great
progress in this exciting spring. Philadelphia Magazine
gives you an update on the development of Comcast
Innovation and Technology Center, FMC Tower,
Manayunk Bridge Trail, Braverman Building, East
Market Corridor and the Cheesecake Factory store.
Read more at Philly.com.
Read more at Philadelphia Magazine.
BIG CENTER CITY DEVELOPMENT SITE BACK
ON THE MARKET FOR $30M
By Natalie Kostelni on March 6, 2015
Source: Philly.com, March 2015.
UNIVERSITY CITY DISTRICT REPORT MAKES THE
CASE FOR NEIGHBORHOOD PARKLETS
By Jon Geeting on March 4, 2015
Source: Philadelphia Business Journal, March 2015.
“Parklets, those temporary little spots that repurpose
curb parking spaces for street seating or other
miniature public spaces, have flourished in University
City in recent years due to strong support from
University City District and local businesses.”
Check out the new report at University City District.
Garrison Investment Group of New York is selling a
huge Center City development parcel – River City. “It
is comprised of five parcels totaling just over seven
acres near the Schuylkill River and is L-shaped. It
consists of 60 N. 23rd St., 2301, 2201, 2101 and
2001 John F. Kennedy Blvd.”
A brief summary is available at Plan Philly.
Read more at Philadelphia Business Journal.
Page 4
© 2015, CBRE, Inc.
CBRE Retail Newsletter: MARCH
CBRE RESEARCH
REGIONAL SUBURBAN NEWS
NEW PLANS FOR MT. SINAI INCLUDE
DEMOLITION AND 95 TOWNHOUSES
CONSTRUCTION PREPPING FOR ONE
ARDMORE PLACE EXPECTED
By Taylor Farnsworth on March 9, 2015
By Angelly Carrion on March 9, 2015
“The hopes of renovating the historic Mt. Sinai hospital
at 4th and Reed have been all but dashed with a new
proposal presented last week by the Concordia Group.
Instead of renovating and utilizing the existing Mt.
Sinai hospital structure, the plans now include the
demolition of the entire building to make way for 95
townhouses.”
Read more at Passyunk Post.
Source: Philadelphia Magazine, March 2015.
TRUMBAUER BUILDINGS TO ANCHOR
KESWICK VILLAGE UPGRADE
By Alan J. Heavens on March 10, 2015
“One Ardmore Place, which recently had a lawsuit
regarding it dismissed, has finally inched closer to
reality. Under a 24-month construction schedule, the
new, mixed-use apartment, retail and public parking
complex would be complete by spring 2017.”
Read more at Philadelphia Magazine.
THE CONTAINER STORE COMING TO
CHRISTIANA THIS FALL
By Scott Goss on March 9, 2015
Source: Meaghan Pogue, March 2015.
Private developer Steve Balin and Abington Township
official Larry Matteo are working to craft the Kewick
Commons into a vibrant strip of small businesses. They
are planning $2 million worth of renovations on this
2.5-acre site with retail space and 11 apartments.
Read the news at Philly.com.
The specialty retail chain Container Store will be
opening its first location in Delaware this fall. This
24,000-square-foot store will locate in the Christiana
Fashion Center, which is “currently under construction
south of the Christiana Mall.” It is one of the seven
new locations the chain has planned this year.
“According to its latest annual report, The Container
Store plans to eventually operate 300 locations
nationwide.”
Read more at Delaware Online.
Page 5
© 2015, CBRE, Inc.
CBRE Retail Newsletter: MARCH
CBRE RESEARCH
CBRE NEWS
REPRESENTATIVE LEASE TRANSACTIONS IN FEBRUARY
RETAILER
DEAL TYPE
PROPERTY ADDRESS
Tenant Represented
Cross Key Commons
2970 Brunswick Pike
Lambertville, NJ
BROKERS
Rick Schuch & Brandon Famous
Tenant Represented
2970 Brunswick Pike
Lawrenceville, NJ
Rick Weinberg
Landlord Represented
Lycoming Crossing
340 S. Lycoming Mall Road
Muncy, PA
John Krause & Adam Kohler
Landlord Represented
Frankford Square
6801 Frankford Avenue
Philadelphia, PA
Jon Kieserman
Tenant Represented
RK Cape Roads Crossing
600 South Street West
Raynham, MA
Matthew Knowles & Lauren Pettit
Page 6
© 2015, CBRE, Inc.
CBRE Retail Newsletter: MARCH
CBRE RESEARCH
CBRE NEWS
REPRESENTATIVE SALE TRANSACTIONS IN FEBRUARY
CBRE CLIENT
DEAL TYPE
Seller Represented
PROPERTY ADDRESS
BROKERS
Shoppes of Montage
1011-8031 Shoppes Blvd.
Moosic, PA
Kevin McClernon & Robert Mahoney
Seller Represented
Pottstown Plaza Shopping
Center
799 State Street
Pottstown, PA
Kevin McClernon
Buyer & Seller
Represented
Lawndale Plaza
6301 Oxford Avenue
Philadelphia, PA
The Glenville Group
Brad Nathanson
Alfred P. Liebold Associates
Family Limited Partnership
Seller Represented
Bethayres Shopping Center
650 Welsh Road
Huntingdon Valley, PA
Patrick McCabe
Seller Represented
2250-2260 Harding
Highway
Franklin Township, NJ
Richard Guthridge & Patrick O’Donnell
Page 7
© 2015, CBRE, Inc.
CBRE Retail Newsletter: MARCH
CBRE RESEARCH
RESTAURANT NEWS
THE HOTTEST RESTAURANTS IN PHILLY RIGHT
NOW, MARCH 2015
DETAILS ON BUENA ONDA, JOSE GARCES’S
BAJA SEAFOOD SHACK
By Carly Szkaradnik on March 5, 2015
By Arthur Etchells on March 6, 2015
Philadelphia Eater is offering the Eater Heatmap,
which will update continually to highlight the hottest
restaurants across the city right now. This month, the
openings of Bing Bing Dim Sum and Bonchon are
drawing the most attention.
Jose Garces’ new restaurant Buena Onda will open
doors at the Granary building on the 1900 block of
Callowhill Street on Monday, March 16. It will be a
casual restaurant “serving up fish tacos and other
tastes of the Baja peninsula.”
Read more at Philadelphia Eater.
Read more at Foobooz.
CONTACTS
For more information about this report, please contact:
Ian Anderson
Director, Research and Analysis
CBRE Research
t: +1 215 561 8997
e: ian.anderson2@cbre.com
Lauren Koshgarian
Senior Research Analyst
CBRE Research
t: +1 215 561 8932
e: lauren.koshgarian@cbre.com
Wei Luo
Researcher
CBRE Research
t: +1 484 567 2473
e: wei.luo@cbre.com
FOLLOW CBRE
CBRE RESEARCH
CBRE Research is an integrated community of preeminent researchers and consultants who provide real estate market
research, econometric forecasting, and corporate and public sector strategies to investors and occupiers around the globe.
Additional research produced by CBRE Research can be found at www.cbre.com/researchgateway.
DISCLAIMER
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy,
we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy
and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved
and cannot be reproduced without prior written permission of CBRE.
CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All
other marks displayed on this document are the property of their respective owners.
Page 8
© 2015, CBRE, Inc.
CBRE Retail Newsletter: MARCH
CBRE RESEARCH