Retail Site Selection & Convenience Stores
Proximity & Accessibility of Retailers
Since the beginning of time, retailers have strategically positioned themselves in a manner where they could capitalize on the disposable dollars that their target market spends.
While technology advancements have enhanced the ability for consumers to buy certain products online and have them delivered right to their doorsteps, there are still several retail sectors that cannot be replaced by e-commerce.
This blog series will outline three of those retail sectors: 1) Convenience Stores (C-Stores), 2) Fast Food Restaurants (Quick Serve Restaurants or QSRs), and 3) Drug Stores, as well as the site selection criteria they require.
I started in the commercial real estate industry in 1996. At that time, “portable” phones were in a bag that had to be plugged into a cigarette lighter, the internet was in its infancy stage, and relationships required verbal communication only.
While so much has changed over the past 23 years, three primary demographic criteria have remained a constant for market-based retailers: traffic patterns/counts, population (existing and growth) and access.
All retailers benefit from customers passing their physical stores regularly and having a location that is easily accessed. However, extensive consumer studies have caused certain retailers to apply more weight to traffic patterns and population when evaluating a market. Let me explain.
Part #1: Convenience Stores (C-Stores)
C-Stores are the one retailer that relies most heavily on traffic counts, as opposed to population. Also, C-Stores typically position themselves to take advantage of P.M. traffic patterns.
I started doing commercial real estate site selection work for a regional C-Store in 2002. The Director of Real Estate had over 30+ years of experience at the time. In one of our first meetings, when asked what the most crucial criteria were when looking for a site (outside of immediate competition), he said without hesitation, “We need to be on P.M. traffic side of the road.”
When questioned why that criteria were so crucial, he responded, “If you think about it, most people are pressed for time in the mornings. So, they will typically stop and only put enough gas in their tank to get them to work. If they have a couple of minutes to come inside and buy something, it is usually a small ticket item like coffee or a pack of cigarettes.
On the other hand, P.M. customers are typically not pressed for time. In turn, they are more likely to stop and fill up their tank. Plus, a higher percentage will come inside and buy much larger ticket items, like a 12-pack of beer, a carton of cigarettes or food for dinner.
We have done extensive studies, and our P.M. customers generate 4-5 times larger ticket sales than our A.M. customers. You do the math. That is why we will always prefer our stores to be accessible to the P.M customer.”
Over the span of several years, I sold more than 15 locations to the same C-Store. At one point, the client gave me a trade area in which to find a site. To my surprise, the trade area he provided had very minimal rooftops, at best. Besides, it wasn’t in a high-growth area.
Despite being provided the sales numbers of an existing competitor in the market, the trade area was a mystery to me. Furthermore, the trade area to choose from was on the A.M. side of the road, yet the competitor’s C-Store had the 2nd highest sales out of 65 corporate locations.
I spent the better part of the next week sitting across the street from the competitor’s store and driving the trade area, trying to determine who their customer base was. I sat and watched the A.M., mid-day and P.M. traffic patterns. The store was packed the entire day.
In addition to a railroad track eliminating the P.M. side of the road from being developed, the road was a major thoroughfare to one of two bridges that crossed the Mississippi River. As a result, customers that lived up to 10+ miles away were forced to pass the location on a regular basis.
While the immediate area had limited rooftops, the competitor’s store had record sales based on traffic count alone.
Throughout the site selection process, sometimes the criteria evolve based on a specific market area. That’s why it’s important to consult a site selection specialist who can help you analyze the area and find the ideal location for your business.
Stay Tuned for Part #2 – Fast Food Restaurants or QSRs.
For questions regarding your commercial real estate property, contact J. Collier Thornton at (225) 926-4481 or cthornton@stirlingprop.com.
Stirling Properties’ 3rd Quarter Portfolio Report Shows Positive Outlook
As the commercial real estate industry endures unrelenting disruption—specifically in the retail and office market segments—we have seen glimpses of a silver lining.
Despite all the headwinds and negativity swirling, Stirling Properties’ outlook is optimistic moving into the 3rd quarter of 2019 compared to this time a year ago. A recent comparison of our overall commercial portfolio revealed positive key performance indicators in total rental income, rental and occupancy rates.
Mind you, these numbers may not reflect significant increases, but they do illustrate an upward trend. In fact, almost every key metric indicated a positive gain. A further breakdown shows both our office and retail properties are performing well with occupancy rates holding steady and rental rates up slightly, contrary to the ‘apocalyptic environment’ predicted in years past.
For Stirling Properties, our portfolio achievements are not the result of a magic wand or some sort of geographical shield. We attribute our continued success to proper management of our commercial properties.
Asset and Property Management is vital for the health of an asset and can significantly affect its worth. Yes, location is important, but a property can also increase in value just from being well maintained and, of course, the opposite is true as well. Management affects tenant and customer relationships, vendor relations, public perceptions, all the things that determine a properties’ success or failure.
With our properties, we focus on keeping rents at market level and our rental stream within reasonable expectations. We don’t overleverage. We concentrate on tenancy—the right tenancy—and we use our market knowledge to tailor each asset plan. Effective managers see headwinds coming and react accordingly to proactively overcome obstacles.
Knowledge and diversity of various property types and needs, as well as industry trends, are also critical. In today’s retail landscape, we’re seeing smaller footprints, the emergence of different tenant types and shifts in consumer demands. There is steady growth in the healthcare and industrial industries, and in some cases, they are merging with retail. In the office sector, users are looking for less square footage, more collaboration with open floor plans, and innovative trophy projects.
These trends in the commercial industry increase the need for more curated properties. Stirling Properties’ in-house operating, leasing and development resources allow us to be more strategic and forward-thinking with our managed properties. If a property is in a great location but is struggling with tenancy, perhaps a redevelopment would be effective. Does the building lack visual appeal, have a maintenance problem or even a marketing problem? Whatever the case, Stirling Properties’ comprehensive spectrum of services can tackle it.
Look at our current redevelopment of Cornerview Plaza in Gonzales, Louisiana. This retail center is in a great location but was struggling to backfill a nearly 90,000-square-foot vacancy left by its former anchor, Kmart. Stirling Properties’ team consisting of Asset Management, Development, Leasing and Financing worked with the Property Owner to redevelop the space into a multi-tenant, upscale Retail Center. We secured favorable financing for the ownership. This gave us the ability to move forward with an aggressive redevelopment plan, bringing on Marshalls, ULTA Beauty, Ross Dress for Less, Five Below and Aspen Dental to fill one-time anchor space, joining the existing grocery-anchor, Rouses Market, and AT&T.
Another notable example is DANA Incorporated. Our Leasing Team was enlisted to help the corporation locate an industrial space in the market for the relocation and expansion of their service and assembly center. After realizing their specific space needs, our Development Team was brought in to present build-to-suit options. We were able to help them locate land and manage the development of their new facility designed with ample flex space to meet their needs and accommodate future expansion.
Our all-inclusive approach showcases our diverse range of services we offer to our clients, allowing us to maximize the full potential of every property. And that commitment and dedication to our portfolio are reflected through consistent positive gains in leases, occupancy rates, rental rates and income.
Stirling Properties’ experienced management team serves more than 20 million square feet of property across the Gulf South, including some of the largest commercial properties in the Region. We fully understand geographic markets, diverse property types, a property’s unique requirements and marketability, specific financial situations, ownership goals and tenants’ needs. We consistently focus on cost-efficient operations and explore innovative concepts to improve the value of each asset. We pride ourselves on delivering results through diligence, professionalism, accountability, and good old-fashioned work ethic!
Now, all of this is not to say that more disruption and headwinds aren’t looming around the corner, but I am confident that we are prepared to handle it.
If you have any questions about your property or would like to discuss Asset Management options, please feel free to reach out.
Stirling Properties Announces New Tenants at Hammond Square
Redevelopment of former Sears and Rite Aid stores into multi-tenant retail space.
Stirling Properties commercial real estate company is thrilled to announce that Michaels, HomeGoods, Five Below and PetSmart will join the tenant lineup at Hammond Square shopping center in Hammond, Louisiana.
Rhonda Sharkawy, Senior Retail Leasing & Development Advisor with Stirling Properties, handled the lease transactions on behalf of the landlord.
Michaels, HomeGoods and Five Below will occupy a newly constructed multi-tenant building on the parcel formerly occupied by Sears and Rite Aid. Michaels will lease 21,000 square feet, HomeGoods will lease 22,000 square feet and Five Below will lease 8,300 square feet. PetSmart will occupy approximately 15,000-square-foot store adjacent to Hibbett Sports. There will be a newly created outparcel at the corner of Hammond Square Drive and Palace Drive, near the entrance of the retail center. This outparcel is available for a future retail or restaurant up to 6,000 square feet.
Demolition of the former Sears and Rite Aid buildings was completed earlier this year to make way for the $15 million redevelopment project. Construction of the new space has commenced, and developers are recycling the crushed concrete from the building demolition to use for paving base material. Buildout is expected to be completed in the first quarter of 2020 with the new retail tenants anticipated to open in the second quarter of 2020.
Also new to Hammond Square, Old Navy celebrated its grand opening this past spring. The new-to-market fashion retailer is located on Palace Drive between Zales and Shoe Dept. Encore. Poké City recently announced that it would open its 2nd Louisiana location at Hammond Square. The restaurant, serving Hawaiian-inspired food bowls, will occupy the former Which Wich location on Palace Drive between Menchie’s and GNC. It is expected to open this August.
“Stirling Properties is excited to welcome these first-class retailers to Hammond Square. They are all new to the Hammond market, and we are confident they will be extremely well-received by the surrounding Tangipahoa community. They complement our existing tenant mix perfectly—even further positioning Hammond Square as a leading shopping destination in the region. In addition, our leasing team is still working to secure additional retailers and restaurant options that we hope to be able to announce very soon,” said Grady Brame, Executive Vice President with Stirling Properties.
Hammond Square is Tangipahoa Parish’s premier shopping destination, located on approximately 100 acres at the northwest corner of Interstate 12 and US Highway 51 Business (SW Railroad Avenue) in Hammond, Louisiana. It is the 2nd largest open-air center in Louisiana encompassing over 902,000-square-feet of more than 40 national and local retailers, shops and restaurants, including Dillard’s, Target, The Home Depot, JCPenney, Academy Sports+Outdoors and AMC Theatres. Stirling Properties redeveloped Hammond Square and currently manages and leases the center.
For more information on Hammond Square, visit www.hammondsquare.com or facebook.com/hammondsquare. For leasing and sales information, contact Rhonda Sharkawy at (504) 620-8145 or rsharkawy@stirlingprop.com.
Stirling Properties Hires Veteran Real Estate Broker Austin Earhart as Senior Advisor
Stirling Properties announces that veteran real estate broker Austin Earhart has joined its commercial team as Senior Advisor. He will work from the company’s Baton Rouge office located at 6160 Perkins Road, Suite 200.
With over 20 years of experience in commercial real estate, Earhart has become one of the region’s foremost retail experts specializing in tenant and landlord representation, lease negotiation, site selection, and dispositions for local and national retailers. He has been a multi-million-dollar producer in Louisiana, and regularly closes deals in all aspects of commercial properties including industrial, office, land, and investment sales.
Earhart’s landlord representation includes institutional and local owners with retail portfolios ranging from 5,000 square feet up to major power centers. He has worked with many of the nation’s leading retailers including Walmart, Lowe’s, Whitney National Bank, AmSouth Bank, MidSouth Bank, FedEx Kinko’s, Starbucks, Xerox, Best Buy, Eatel, Rally’s/Checkers, Walgreens, Papa John’s, Nextel, and Hobby Lobby.
Before joining Stirling Properties, Earhart was an agent with Beau Box Commercial Real Estate company, where he served the Baton Rouge, Louisiana, community for 12 years.
Earhart attended the University of Mississippi and is a Certified Commercial Investment Member (CCIM) candidate. He is affiliated with ICSC (International Council of Shopping Centers) and the National Association of Realtors (NAR). He is also an active member of the Greater Baton Rouge Association of Realtors (GBRAR), where he serves on the Trends Retail Board Committee and is a past board member of the Commercial Investment Division (CID). He is a regularly published writer as a retail expert in national trade magazines.
“I’m excited to join Stirling Properties. Their excellent reputation, national reach, and comprehensive industry knowledge are attractive—and evident in the more than $1.64 billion worth of third-party transactions they have closed in the last five years alone,” said Earhart. “I look forward to better serving the real estate needs of my clients—not only in brokerage but by utilizing the full gamut of commercial services available through Stirling Properties.”
“Stirling Properties is thrilled to welcome Austin Earhart to our team of commercial advisors. His extensive experience and market insight will help us continue to grow our services in the Greater Baton Rouge region and across the Gulf South, and further position us as a leader in the market,” said Chris Abadie, Vice President and Manager of Commercial Brokerage with Stirling Properties.
Austin Earhart can be reached at aearhart@stirlingprop.com or (225) 926-4481.
New Fashion Retailer, Physical Therapy and Multifamily Development Coming To Fremaux Town Center & Fremaux Park
Stirling Properties is pleased to announce new tenants and development updates at Fremaux Town Center and the surrounding Fremaux Park mixed-use project in Slidell, Louisiana.
Old Navy is coming to Fremaux Town Center. The fashion retailer will occupy 12,500 square feet of store space on Levis Lane between Dillard’s and Capital One Bank. Construction of the building will commence this week, with plans to open in the spring of 2020. Old Navy provides the latest fashions at great prices for the whole family, including men’s, women’s, women’s plus, kids’, baby and maternity wear.
This marks the 3rd Old Navy location for the Northshore region, with other retail stores operating at Stirling Properties’ Premier Center development in Mandeville and Hammond Square development in Hammond.
PT Solutions physical therapy provider is also leasing 2,617 square feet of retail space in Fremaux Town Center located on Town Center Parkway between Aveda and Bath & Body Works. Buildout of the space began recently, with plans to open in mid-July.
Ryan Pécot, Senior Retail Leasing & Development Executive with Stirling Properties, handled the lease transactions for both retailers.
(Waypoint multifamily apartment units)
Stirling Properties recently closed on the sale of a 20-acre site to multifamily developer, Waypoint, for a luxury apartment community in Fremaux Park. The 276-unit multifamily development will consist of eight detached buildings that will be located along Town Center Parkway on the south side of the W-14 canal. Construction is scheduled to begin in the next couple of weeks.
The developer for the Marriott Springhill Suites has started construction this month with site clearing and site work now underway. The hotel is expected to open in 2020.
Fremaux Town Center, anchored by Dillard’s, Dick’s Sporting Goods, Kohl’s, and Best Buy, is part of the roughly 350-acre regional mixed-use development located at the southwest corner of Interstate 10 and Fremaux Avenue in Slidell, Louisiana. The retail center includes more than 640,000 square feet of shopping and restaurant options and is jointly owned and operated by CBL Properties and Stirling Properties.
Tenants include Albasha Greek & Lebanese Restaurant, Allure Spa, Aveda, Bath & Body Works, Bellagio Nail Spa, Best Buy, BJ’s Restaurant & Brewhouse, Books-A-Million, Buckle, Capital One, Carter’s, Cheddar’s, Chico’s, Chipotle Mexican Grill, Claire’s, Dentists of Slidell, Dick’s Sporting Goods, Dillard’s, dressbarn, Exit 16 Boutique, European Wax Center, Five Below, Five Guys Burgers & Fries, Forever 21 Red, Francesca’s, GNC, Goodyear, Great American Cookie Company, Journeys, Kay Jewelers, Kirkland’s, Kohl’s, LA Fitness, Lane Bryant, LensCrafters, LOFT, Longhorn Steakhouse, The Lost Cajun, Luxe 83, Marble Slab, Massage Envy, Mattress Direct, Men’s Wearhouse, Michaels, Off Broadway Shoe Warehouse, Old Navy (coming soon), Panera Bread, Payless Shoes, PetSmart, Pier 1 Imports, Pizza Platoon, PT Solutions (coming soon), Rack Room Shoes, Red Robin, Rock N Roll Sushi, rue21, Saltgrass Steak House, Smoothie King, Sports Clips, Starbucks, Tesla (charging stations), T.J.Maxx, Torrid, ULTA Beauty, Verizon Wireless, Versona, Victoria’s Secret, Walk-On’s Bistreaux & Bar (coming soon), Which Wich, and Zales.
The adjoining Fremaux Park includes Retreat at Fremaux Town Center luxury residential apartment units, Springhill Suites by Marriott (coming soon), Waypoint apartment community (coming soon), Saltgrass Steak House, and Dana Inc. Service & Assembly Center (coming soon). Additional phases are forthcoming with added residential, retail, industrial and office park. Fremaux Park is a Stirling Properties mixed-use development.
For leasing information, contact Ryan Pécot at 337.572.0246 / rpecot@stirlingprop.com or Michael Oswald at 423.490.8272 / mike.oswald@cblproperties.com.
Bath & Body Works Celebrates Grand Re-Opening at Premier Centre
Renovation & Expansion To Include New White Barn Shop.
Bath & Body Works at Premier Centre in Mandeville is celebrating its grand re-opening on Friday, May 10th—just in time for Mother’s Day! If you love Bath & Body Works, get ready for a renovated and expanded store format that will include the addition of its White Barn concept. Stop by this weekend for exclusive Mother’s Day sales and specials.
White Barn, a sister company of Bath & Body Works, features signature candles and home fragrances. The line is exclusively sold through Bath & Body Works, and the new combination store concept will offer a more extensive variety of product offerings.
Bath & Body Works is located at Premier Centre on the corner of Highway 190 & N. Causeway Boulevard, next to Whole Foods Market in Mandeville. The store temporarily closed its doors for more than two months to complete the buildout and 1,538-square-foot expansion into part of the adjacent former Hallmark space. The new store format is part of a company-wide effort by Bath & Body Works to incorporate the popular candle and fragrance line into its existing storefronts.
Stirling Properties also recently welcomed the White Barn concept to Bath & Body Works stores at Fremaux Town Center in Slidell and River Chase in Covington. Stirling Properties is proud to continue to deliver quality retailers and shopping center developments to the Gulf South region!
