Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.
Issue link: https://westernrealestatebusiness.epubxp.com/i/566807
www.REBusinessOnline.com Western Real Estate Business • September 2015 • 59 21 Dollar General stores throughout Southern California. The company has opened stores throughout San Bernardino, Lompoc, Victorville, Yuc- ca Valley, 29 Palms and Hemet, with several more in development. "Dollar General has only recently begun expanding in California," Rive- ra says. "That market was previously ignored because of the high develop- ment costs. But the chain's continued expansion and investment in distribu- tion centers is evidence they are frmly rooted in the California market." Rivera also notes these properties have traded at cap rates in the high 5 percent to 6 percent range. Ethnic grocers are also thriving in California's retail corridors, Nouraf- shan notes. "There is also a drift toward ethno- centric grocery markets that targets specifc ethnicities," he says. "But as the economy becomes more global, consumers are more exposed to var- ied ethnic products, allowing these stores to become destination stores, driving more consumer trafc to neighborhood centers. They cater to very robust Hispanic demographics and beyond." Nourafshan says Reliable has re- cently signed deals with Hispanic supermarkets in Arleta, West Covina and Ontario. Expanding The Palate Consumers are not only becoming more adventurous in the kitchen. It's expanded to their choice in restau- rants and dishes as well. One needs to only look as far as the newest, hip retail center to see these creative con- cepts in action. "Dining has be- come a major com- ponent of every re- tail center, bringing the vibrant energy and life to centers that today's con- sumers crave," says Howard Wong, di- rector of retail leas- ing for Passco Com- panies in Irvine, California. "The result is a more dy- namic shopping experience, as we've re-invented the mall by incorporating a lifestyle experience throughout the entire property. To do this, we added outdoor elements and we are current- ly in leasing negotiations with many major sit-down and quick-service res- taurants." Wong points to Passco's Hanford Mall as one example of a center that has leveraged dining and incorpo- rated it into a retail center. The center includes familiar faces like Applebee's and Chili's Bar and Grill, along with local favorite Arsenio's Mexican Food and quick-serve options like A&W;, Dairy Queen and Subway. Wong also notes elevated restaurant concepts can increase rent at many of the state's hottest centers. He believes Los Angeles and Orange County are two markets where this is occurring. "The Los Angeles and Orange County markets are certainly on the forefront of the current foodie trend, and we're seeing demand for new foods and concepts translate into an explosion of new restaurants each year, creating a plethora of new busi- nesses," he says. "We're seeing restau- rant and food retailers increasing the occupancy in shopping centers from 10 to 20 percent — up to 30 percent to 40 percent in many cases." WalMart Neighborhood Center recently debuted at Reliable's 6th & Smith Center in Corona. It is joined by tenants like Giant Dollar, T-Mobile, Cricket Wireless and Fast 5 Pizza. Wong