Lenders Like Lifestyle Centers

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.