This article first appeared in Real Estate Media's Debt & Equity Journal. Erika Morphy is that publication's co-editor.
NEW YORK CITY-For the past few years, it has been clear that so-called lifestyle centers--an upscale retail concept that features an open-air design and a more intimate and picturesque environment--have become a leading driver in the sector's development. Patrice Duker, a spokesperson for the New York-based International Council of Shopping Centers, says that such properties have developed significant traction since 1997 when they first became popular.
"We are seeing more lifestyle centers built than closed malls now," Duker says. This year, for instance, 16 such projects opened in the US, versus just five of the more traditional enclosed malls.
Equity and mezzanine retail lenders have taken note over the last year and a half, offering aggressive terms and underwriting. Now, over the past six months, it has become clear the CMBS is following suit, says one industry insider.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
