California Centers

MAY 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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16 California Centers Magazine | May 2018 C C anchor space on the market," says Jo- seph Williams, senior vice president at the Woodmont Company's New- port Beach office. "When a landlord has an anchor who will be vacating, he or she needs to look closely at ar- chaic restriction language and work collaboratively with the rest of their tenants on waivers that best serve the long-term interest of the shopping center." Though re-tenanting a 94,000-square-foot space isn't neces- sarily a walk in the park, it can pro- vide the perfect opportunity to update a dated space and enhance perfor- mance, not to mention offerings, at a center. David Ruddick, executive vice president of U.S. leasing at Westfield Corp., adopts this approach to large vacancies. Like other major shopping center owners and operators, West- field has had to navigate its fair share of closures. Sears closed at Westfield UTC in the San Diego submarket of La Jolla this past fall and will be va- cating Westfield Galleria in Roseville this July. "Westfield views the consolidation of department and big box stores in its portfolio as a long-term oppor- tunity to creatively transform retail space," Ruddick says. "This often means introducing new concepts like entertainment venues, food halls and additional retail storefronts — pro- viding new experiences for consum- ers while also diversifying the mall offering." THE THREE 'F'S OF RETAIL If shopping center owners are lucky, their vacant anchor spaces will score an "F" — a tenant that specializes in fun, food or fitness. "Retail is very dynamic right now," says Shauna Mattis, senior vice pres- ident of retail brokerage in JLL's Los Angeles office. "The categories are evolving from mass merchandise anchor categories to new concepts focused more on customer experi- ences, specialty products and service options." The service-oriented nature of food and beverage, entertainment and fit- ness inherently combat the onslaught from online offerings. Their experien- tial nature also allow these tenants to swoop up significant spaces left be- hind by department stores. "Service and entertainment users are aggressively backfilling space," Williams says. "In the entertainment Majestic Realty has built almost 1 million square feet of retail at its Citrus Plaza and Mountain Grove retail properties in Redlands. The assets boast a diverse tenant mix that provides goods and services, food and entertainment venues. 3146 Red Hill Avenue, Suite 200, Costa Mesa, California 92626 | (tel.) 714.432.0990 (fax) 714.432.0352 We offer only the highest caliber of experienced, efficient and business minded attorneys for all real estate and business transactional matters. We are results oriented, entrepreneurial in character and committed to providing quality legal services on a cost effective basis. • Commercial Real Estate Leasing & Development • Lending & Finance • Business & Corporate Transactions • Real Estate Litigation • Estate & Tax Planning • Probate & Trust Administration Michael J. Mirkovich Michael G. Robinson Partner Partner Catherine J. Weinberg Elizabeth Estes Ricci Partner Partner Andrew Y. Prochnow Scott L. Shannon Associate Associate Kevin S. Miao Brent H. Coeur-Barron Of Counsel Of Counsel commercial real estate and business attorneys William D. Buckner Managing Partner

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