The Delaware County 58 acre property known as the Granite Run Mall is experiencing some drastic changes as of late. The 39 year old JCPenney store announced its closing plans in January. This was one of 40 closings scheduled across the US. Under-performance is said to be the root cause of this array of retail cessations. This “old school” mall is not finished yet. BET Investments, the current owner based in Horsham, PA has big plans for a re-do. It is said that there is a heavily funded plan to convert the antiquated building into an opulent mixed-use town center. (This does seem to be trending, doesn’t it?) This lifestyle center concept is encountering extensive popularity. This adaptation by the retail development industry is a conspicuous sign that the way consumer mentality and preference is drastically changing. Formerly a convenience to be savored by mainly 55+ active adult communities, the mixed use lifestyle centers are drawing in the young professionals and families alike. Boutique-type shopping in lieu of the big box and mega-department stores, open courtyards rather that jam-packed push and shove hallways and let’s not forget open air walkability to give that Fit Bit a workout. This projects a new lifestyle that we American consumers have embraced, one that incorporates all the luxuries of residential living spaces with shopping, entertainment, outdoor activities, fitness and multiple dining options, all within a walking distance. Many of these lifestyle centers also solve a ever-present, pressing problem that many cities and urban areas experience. The parking issue is being resolved by parking garages strategically placed within the lifestyle centers, creating added value and convenience. The face of retail is ever-changing they say. However, the popularity of this particular development concept may provide sustainability for this new look of retail.
Well it is that time again when the economists, financiers, commercial real estate execs and genies make their predictions for the New Year. As predicted by the Delloitte Center for Financial Services, rents and vacancies showed improvement, development pressed pause, REIT’s and foreign investment led the charge in activity, the standards for CRE lending were allayed and leasing was partially determined by tenant’s use of technology. The majority of sources remain positive regarding 2015’s outcome.
We have good news on the unemployment sector. The majority of the US saw a downturn in unemployment. That evidence includes those that vacated the workforce. For 2014, here are the stats:
States where unemployment experienced an annual increase:
- North Dakota
- W Virginia
States that experienced no change:
While Puerto Rico’s unemployment decreased, they still hold the highest unemployment rate at 14 percent. The average in the nation in December was 5.69 according to NCSL data.
- Enduring returns of REIT’s
- Expanded funding sources on a global scale
- GDP growth trend
- Investment transactions rise
- Construction Industry gradual recovery
- Technology advances
- Industrial property development growth
- Suburban markets making a comeback
The potential perils and pitfalls foreseen in wonderland, pardon me, CRE-land include currently delayed, yet inevitable Treasury rate escalations, federal regulatory ambivalence, the predicted plunge in US labor force growth two years from now, aging infrastructure and vacillating energy prices.
In Through the Looking Glass (Part 2) we will further explore the nuts and bolts of the industry findings…stay tuned.
Deloitte Center for Financial Services, Deloitte Development LLC, 2014 “2015 Commercial Real Estate Outlook”
Urban Land Institute & PWC, “Emerging Trends in Real Estate – US and Canada 2015”
National Conference of State Legislatures, http://www.ncsl.org/research/labor-and-employment/2014-state-unemployment-rates.aspx, December 19, 2014
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Chronic pain is a complex condition with multiple layers of challenges, many which unfortunately are invisible to others except for the person suffering. It often has multiple facets to its presentation ranging from physical and emotional to social factors. Unfortunately, very commonly, chronic pain goes untreated or under-treated in our society.
Given the complexity, the essence of comprehensive pain management at ARK Spine Care & Pain Management includes a multimodal approach, which includes different modalities spanning from physical therapy, medications, psychological treatments if indicated, and injections. Reliance on only one modality may result in minimal or partial improvements. Our ultimate goal is to improve our patient’s level of functioning and pain scores in the most compassionate and safe way.
Providing the most advanced medical approaches and highest quality of pain management, Dr. Jha strives to work with patients to develop a plan of care that best meets the needs of each individual. She evaluates patients with a variety of pain problems and devises a carefully thought out treatment plan according to each unique pain problem. Implementing interventional and non-interventional therapies of pain management to deliver effective comprehensive care, ARK Spine Care & Pain Management provides the highest quality of non-operative pain management available.
According to the CCEDC (Chester County Economic Development Council) a new CCEDC-led taskforce has been created to facilitate new business along the US1 corridor from Kennett Square and traveling Southbound to the Maryland line. This is our backyard folks. We are excited and anticipating the opportunities this poses for the Southern Chester County business community, not to mention the Commercial Real Estate biz in our local region.
Representatives from a dozen municipalities have come together to brainstorm and create a “draw” to this specific area of the Greater Delaware Valley. Within the next ten years, they estimate 3 million sf of commercial real estate to be in the project development stages.
The foremost hurdle they must bound is targeting the issues that hinder new growth and interest. Pinpointing those ball-and-chains is paramount before moving forward with new marketing and splash about Chester County. Key infrastructure challenges include public transportation, sewer and water utilities, affordable housing, land planning and the overall approval process. Without a coordinated effort by all key parties, we lose countless opportunities to other states. Jobs and revenue cast away for naught. Agencies working together, efficiencies in executing new utility extensions honed and innovative implementations by the local leadership would all be integral portions of this new “plan” as I see it.
We do have positive attributes going for us. Large thriving companies have made their home here. They include:
- Herrs Corporation
- Dansko Corporation
- Dole Mushroom
- Flowers Foods/Tasty Baking Oxford
- Genesis Health Care
- W.L. Gore & Associates, Inc.
- Neuchatel Chocolates dba Confiseurs, Inc.
- Leading Edge Composites, Inc.
- Pollert Plastic Systems
- Endo Pharmaceuticals
We look forward to new possibilities, challenges and successes for the Southern Chester County corridor and are very proud to be a part of the transformation of a new portal of flourishing business and industry.