LOS ANGELES—Recently, several new-construction retail shopping centers have opened in the Los Angeles, illustrating an increase in demand for retail space. Nadel Architects has been the name behind the design for many of these centers, including the recently opened Juanita Tate Marketplace, a $21 million grocery-anchored shopping center. With new development in the retail sector just beginning to pick up, we sat down with Greg Lyon, principal and design director at Nadel Architects, to discuss the drivers behind this new trend and where it is headed. 

GlobeSt.com: You just completed two ground-up retail centers. Do you see higher demand for renovation projects or new construction, and what is driving this demand?

Lyon: We are continuing to see a growing demand for ground retail destinations.  The expansion of retail brands has shrunk the inventory of existing vacant space to a point where it has triggered an increase in demand for new ground up retail space.

GlobeSt.com: Where are ground-up construction retail centers being developed?

Lyon: We are seeing ground-up retail center development occurring in all markets. Certainly the urban infill market was the first to return, however, now we are seeing the return of ground- up in suburban markets; both in southern California as well as the North West markets. This is in part a response to the recovering housing market in these areas.

GlobeSt.com: What types of tenant mixes are owners seeking for newly constructed properties?

Lyon: We are seeing more of a focus on dining, health and active lifestyle retailers as a result of the great recession and the new paradigm that was born from it.  .  An unprecedented variety of new dining concepts finding their way into centers, and dining has become the new entertainment anchor in retail destinations.  There is an emphasis on quality, organic and locally sourced food that consumers of all ages and demographics are seeking out.  In addition, people now realize the value of investing in their health over pure consumerism.  Athletic and fitness apparel lines are the new casual wear.  Retailers that offer health products, vitamins, supplements and personal technology items contributing to health are all in demand.  In addition, the increase in yoga studios, cross fit gyms and other models are all an indication of this lifestyle trend.

GlobeSt.com: How are designs and amenities for newly constructed projects different than renovation projects?

Lyon: We are seeing the same design trends in both the repositioning and ground up markets.  A key focus is that of sustainability.  This trend is not only due to that fact that it is the right thing to do, but it is good business as well.  The Millennial Generation is an altruistic group, concerned for the wellbeing of the environment. Just as they are committed to a sustainable lifestyle in their own actions, they expect it from the brands they support. Millennials actually recognize sustainable design, and are more likely to frequent retail destinations that provide and embrace sustainability.