“It is very competitive,” Ryan Gallagher of Space Investment Partners says when asked about the competition for retail landlords to secure quality retail tenants. Space Investment recently acquired the Back Bay Center in Newport Beach, and plans to execute a re-tenanting strategy at the property to better compete with online shopping. In general, that includes adding daily-needs retailers, restaurants and entertainment options to the project. But, quality tenants want quality centers, and Space will also execute a capital improvement plan as well.

The high quality retail centers like still attract the best tenants,” Gallagher, co-founder and managing partner at Space Investment Partners, says. “We are looking to make Back Bay Center more relevant and more in alignment with the surrounding high-end demographics. The center has the potential to carry some of the best and most desired concepts in Southern California and we intend to make that happen.”

The re-tenanting strategy is a careful analysis of what is and isn't working to curate the best tenant mix, and it includes keeping tenants that are working at the property.  “We have renewed Irvine Ranch Market for 10 additional years. They have been in this center for almost 40 years,” says Gallagher. “We have some other exciting plans for them but it is premature to discuss at this point. We are planning a major investment for the rest of the center to improve the overall look.  We are putting together a well-curated tenant mix that will enhance the overall customer experience.”