ATLANTA-Despite retail sector woes, Regency Centers has leased more than 23,500 of retail and restaurant space for seven new merchant locations in the Atlanta metro market in the last two quarters. The leases were inked at Roswell Crossings and Powers Ferry Square.
That’s big news in an Atlanta retail market that remains challenged by inconsistent consumer demand and a lack of new tenant growth. According to Grubb & Ellis, absorption has suffered, with more than 600,000 square feet of occupancy lost during the third quarter. At 10.6%, the area is posting the highest recorded retail vacancy rate in the last 10 years.
Regency Centers Leasing Agent Leslie Mintz tells GlobeSt.com the biggest obstacle in getting the deals done was competition. “The challenge is to stay on top of what is available in the market and really zero in on what it will take to get the deal done,” she says. “We've focused on the retail categories that are the best fit for our vacant spaces and then we analyzed the market for potential relocations and expansions."
At Roswell Crossing, a 201,979-square-foot shopping center anchored by Office Max, PetSmart, Trader Joe’s, Pike Nurseries, and Walgreens, new tenants have leased a total of 18,273 square feet of space in the second half of the year. Terms of the deals were not disclosed.
The new tenant mix includes Sports Lab, a sport-specific strength training, conditioning and rehabilitation center, make-your-own pizza restaurant Your Pie, and Barkers Red Hots, a restaurant specializing in charcoal-broiled hot dogs.
Powers Ferry Square, a 95,701-square-foot neighborhood shopping center anchored CVS/pharmacy, also inked its fair share of deals in the second half of the year, including children’s boutique Pretty Please, children’s hair salon Pigtails & Crewcuts, Cup Cake Lingerie, and organic bakery And Full Cup.
According to Andre Koleszar, Regency Centers’ vice president and regional officer, Atlanta-area retail business is getting stronger: “We’ve seen leasing activity recovering and retailers are attracted to shopping centers in prime locations with a merchandising mix that attracts upscale customers.”
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