Urban, Social Spaces Permeate Retail as Well

Bobb: “Restaurants continue to be a strong force in the retail space. In 2014, for the first time in US history, restaurant sales surpassed grocery-store sales. Therefore, landlords are allocating a higher percentage of gross leasable area to restaurants today than they did five to 10 years ago.”

SAN DIEGO—Similar to the trends in office and multifamily , the retail sector is also seeing urban influences, walkability and gathering spaces being incorporated into properties, CBRE ‘s VP, retail services, Carrie Bobb tells GlobeSt.com. A recent San Diego retail- construction report from the firm revealed that the San Diego retail market displayed positive fundamentals throughout 2015, with construction deliveries contributing significantly to positive absorption and adding desirable retailers to the market. We spoke exclusively with Bobb about trends she is noticing in retail development here and who is using this space. GlobeSt.com: Please tell us about the type of retail redevelopment and new construction you are seeing in the San Diego market.  Bobb: Developers are incorporating more urban influences into their design element, including mixed-use, pedestrian walkability and streetscape storefronts. Urban-inspired projects are becoming increasingly popular in suburban markets, with consumers driving the future of retail development. Developers are creating memorable, experiential retail environments, which allow consumers either to quickly run their errands or to have the opportunity to grab a glass of wine and meet up with friends. Centers need to be convenient, while also being warm and welcoming. GlobeSt.com: What features are being incorporated into redevelopments?   Bobb: We are seeing more projects incorporate gathering places that set a cozy, friendly tone. The gathering places are where people can comfortably hang out and feel like they are in an intimated backyard-like atmosphere. The Village at Pacific Highlands Ranch in Carmel Valley has a charming main street that wraps up nicely at the Village Square, where the restaurant patios spill out onto the Square and residential units will overlook the gathering space for the project. It includes features such as a community garden, bocce-ball court, dog park and community library. GlobeSt.com: What new users are entering the market in these spaces, and who are the strongest tenants?   Bobb: Restaurants continue to be a strong force in the retail space. In 2014, for the first time in US history, restaurant sales surpassed grocery-store sales. Therefore, landlords are allocating a higher percentage of gross leasable area to restaurants today than they did five to 10 years ago. Restaurants are the new anchors. Boutique fitness and beauty services are also becoming more specialized. Yoga studios, barre studios, spin studios, kickboxing and circuit-training tenants are just a few examples of the boutique fitness users. We are also seeing more specialized beauty services such as Amazing Lash Studio, European Wax Studio and Blowbunny dry bar. These tenants bring repeat customers to a retail center that complement each other nicely.