(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)

CLEVELAND-Developers Diversified Realty has a $1 billion development pipeline that includes 10 million sf of centers already under construction as well as plans for future projects, executives said during their Q2 conference call yesterday. The beefed-up building program is due, in part, to a climate of low capitalization rates that has made acquiring centers difficult, says Scott Wolstein, DDR's chairman and CEO.

Among the REIT's projects in the works announced yesterday are three developments totaling 1.5 million sf set to begin this year. They are open-air centers in Horesheads, NY; McHenry, IL; and Seabrook, NH. The company is also set to break ground on centers in McKinney, TX; and Norwood, MA, by the end of the year. Additionally, DDR has seven projects currently under construction in Miami; Chesterfield and Lansing, MI; Freehold and Mount Laurel, NJ; Apex, NC; and Pittsburgh. All seven centers will total 2.8 million sf.

The REIT is also marketing a portfolio of 42 former Service Merchandise department store sites that it acquired in 2002 and has redeveloped into open-air centers. "We expect a very strong response form the market, with pricing to be very highly competitive," said David Hurwitz, the company's senior executive vice president and chief investment officer.