Carlsbad has escaped the curse of too much retail. Instead, the market is underserved by retail amenities, but Shea Properties is filling the void. The developer is under construction on The Square at Bressi Ranch, an 87,000-square-foot neighborhood center. The property is already 85% preleased, illustrating the strong need for retail and interest from retailers in the market. A CVS Pharmacy and BevMo! anchor the shopping center, along with a tenant mix that includes restaurants and fitness centers.

“The Carlsbad market, when you compare it to other Southern California markets, is currently underserved with regard to retail; and that has created some fantastic opportunities,” Kiril McKee, SVP of retail leasing for Shea Properties, tells GlobeSt.com. “There has been a lot of new office built in recent years, and that has generated a need for more and better restaurant choices. It's almost impossible to find a parking spot during the lunch rush at many of the area retail centers. And if you look at the Carlsbad housing market, there is a definite need for a more affordable point of entry for those looking to buy. Kensington at The Square, one of Shea Homes' newest communities and adjacent to the center, will help fill that void.”

The retail market is undergoing a transformation, but Shea Properties has an optimistic outlook, especially in this market that is so in need of retail options. As a new construction property, the developer has an opportunity to shape the retail for success. “We like to look at it with a little more optimism. Retail, certainly, is in flux. For the past few years it's been trying to figure out an identity in the shadow of the large online retailers,” says McKee. “But change comes to everything, and right now retail is realizing that in order to attract customers, it needs to offer something people can't get through their phones, pads and computers. Food has become that main attractor—it's the new anchor. People love to go out to eat, so the more restaurant options a center has, the more chance it has at bringing customers to the center. Service providers are also important—entertainment venues, fitness centers, health and beauty providers, daily needs. So, in the case of The Square at Bressi Ranch, it's really more an issue of giving people what they need and want in light of this changing retail environment.”