CREJ

Page 2 — Retail Properties Quarterly — May 2018 www.crej.com Contents Letter from the Editor C onsumer demand for movie theaters, restaurants and fitness were popular topics during the Colorado Real Estate Journal retail confer- ence in February. The repeating refrain of chang- ing consumer habits placing a greater emphasis on experiences is something we’ve explored in Retail Properties Quarter- ly. There are plenty of new and inter- esting businesses that exemplify this trend – be it Top Golf, indoor sky- diving or crafting bars – but there also are businesses that always included an entertainment compo- nent, such as movie theaters. However, in today’s ultra-compet- itive world, movie theaters must continue to adapt as well in order to stay relevant. While traditional theaters still capitalize on interest from all age demographics, it’s the theaters that provide a personal touch, such as Alamo Drafthouse Cinema, that can pull customers from up to 30 miles away, Brian Shorter with SullivanHayes Broker- age told the audience. These new or revamped theaters are making some major changes, often scaling down the number of seats in each theater in order to provide higher- quality everything: seating, sound systems, screens, food, beverages and services. The success from providing a per- sonal touch is relevant for restaura- teurs as well. Fast-casual and chef- driven concepts that offer healthy, unique and local options are thriv- ing. With this focus, the quality has noticeably improved for consumers – so much so that in noneconomi- cally depressed areas, fast food will have a tough time competing, said Michael McCormick with McCor- mick Equities. Taking health consciousness one step further, it may come as no surprise that tenants catering to an active lifestyle are some of the most sought-after co-tenants around. The mentality of the fitness user has shifted. Gym members used to be viewed as a drain on a cen- ter, because they occupied parking spaces and didn’t stick around after a workout. Today, those stereotypes have changed as users regularly visit surrounding shops before and after exercising. Kohl’s even lists fitness retailers as one of its most desired co-tenants, Shorter said. Catering to traditional and spe- cialized uses, these tenants are helping fill vacant big-box and smaller spaces alike. But panelists wondered if the market can con- tinue to sustain the current pace of niche gyms. I’m interested to hear if your experiences align with the panel- ists. Let me know who your most in-demand tenants are and which ones are seeing the most success operating in this new consumer environment. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext. 104 In-demand co-tenants Denver market enjoys healthy, active retail sector Ryan Bowlby Disciplined risk assessment helps balance market Jon D. Hendrickson Inventory, capital flows & ingenuity drive investing Matthew Henrichs and Parker Brown Don’t stop me now: Prohibited-use lists evolve Tal Diamant and Zach Siegel Teavana lawsuit ruling is not a fix for all centers David P. Vallas and Kelly D. Stohs Maximize necessity retailers for thriving centers Thomas M. Yockey Create exchange of value to earn vistors’ time Danaria McCoy Retail projects need carefully curated tenant mix Ashley Stiles Grocery tech showcases future retail changes Jay Carlson Food halls’ impact on Denver dining is undeniable Garrick Brown Meeting the needs of today’s restaurant goers Susan Lintonsmith Big-box closures lead to small-box opportunities Mike Willingham 6 8 10 12 14 16 18 20 22 23 24 25 When great ideas are in the right hands. UPROPERTIES.COM MINNEAPOLIS DENVER When it comes to retail development expertise, look no further than our Denver team, where creativity and relationship-building come together to create powerful results. Our retail team is currently in the process of developing 20+ acres in the Denver Metro area. For example, at 56th and Holly, we leveraged our expertise to plan, develop, and open one of America’s most popular convenient stores, 7-Eleven, within a 15-month period. Contact the United Properties Denver team for innovative approaches to your retail space needs at 720.898.8866. 7-Eleven and Starbucks 87th & Indiana Arvada, CO 7-Eleven 56th Avenue & Holly Street Commerce City, CO 10,900 sq. ft. Multi-Tenant Retail 40th and Central Park Stapleton, CO