"The retail development business continues to be a priority for the company," says C. Reynolds Thompson, the firm's chief operating officer. "We are able to create more value in retail development than anything we can do right now." The company currently has five new retail projects underway totaling 1.3 million sf.

Two retail projects are scheduled to open this year, the 289,000-sf Colonial Pinnacle Turkey Creek, in Knoxville, TN; and the 300,000-sf Colonial Pinnacle at Tutwiler Farm, in Birmingham. Other projects under development are throughout Alabama.

Executives told investors and analysts to expect less activity on the acquisition front due to low cap rates, though they stressed that they are still looking to retail assets. The firm is also planning to sell about $150 million in retail properties this year, as well as $300 million in office and $200 million in multifamily.