client logo the state of the retail market southeastern wisconsin
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The State of the Retail MarketSoutheastern Wisconsin
CB Richard Ellis | Page 2
Client Logo
The State of the Retail Market
US Retail Sales Trends Southeastern Wisconsin Shopping Center
Statistics Active Retailers – SE Wisconsin Active Submarkets – SE Wisconsin 2010 Summary What will happen in 2011?
CB Richard Ellis | Page 3
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The State of the Retail Market
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The State of the Retail Market
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The State of the Retail Market
Southeastern Wisconsin – Market Statistics
(1) Footnotes go here. Arial 8pt(2) Footnotes go here. (3) Footnotes go here. (4) Footnotes go here.
Category # of Prop Total SF % Avail % Vacant NNN Rate % Avail % Vacant NNN RateCommunity/Neighborhood 205 21,624,343 11.5% 11.3% $14.60 11.3% 11.1% $14.84
Strip/Inline 177 7,447,714 14.5% 14.1% $14.39 14.2% 13.8% $14.38Regional Centers 6 5,939,804 7.0% 6.9% $27.84 7.1% 6.9% $27.90
Others 18 2,591,250 11.6% 11.6% $17.18 12.5% 12.5% $16.95Total 406 37,603,111 11.4% 11.2% $16.02 11.3% 11.1% $16.18
CURRENT QUARTER PREVIOUS QUARTER
0%
2%
4%
6%
8%
10%
12%
14%
1Q 200
9
2Q 200
9
3Q 200
9
4Q 200
9
1Q 201
0
2Q 201
0
3Q 201
0
Overa
ll Vacan
cy Ra
te
0
5
10
15
20
25
AvgAsking Rate - $/Yr NNN
Vacancy Rate Avg Asking NNN Rate
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The State of the Retail Market
Grocers • Aldi: Grafton, Wauwatosa, proposed for Pewaukee• Pick n’ Save: new stores in Brookfield (Metro
Market), Greenfield, Menomonee Falls (100,000), Mequon, West Bend (north & south)
• Sendiks: Opened a 46,000 sf store in October at New Berlin Plaza
• Woodman’s: Opened a new 248,000 sf store in Menomonee Falls.
• Costco: Proposed 148,000 sf store on Highway 164 in the Village of Pewaukee
• Piggly Wiggly: Opened Capitol Dr. near Midtown, East Capitol Drive, and Kenosha.
Southeastern Wisconsin – Active Retailers
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The State of the Retail Market
Other Active Major Retailers
• Ultimate Electronics: leased 45,564 sf former Circuit City near Southridge
• Wal-Mart: new supercenters in Muskego & Waukesha, new Supercenter planned in Greenfield
• A new 135,000 sf Target store is proposed for• Brookfield.
• AJ Wright opened in Milwaukee & Racine
• Citi Trends opened stores in Milwaukee, West Allis, Racine, & Kenosha
Southeastern Wisconsin – Active Retailers
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The State of the Retail Market
Bluemound Road Corridor – Brookfield• Buy Buy Baby leased the former Circuit City
(40,000 sf) • Golfsmith opened 1st Wisconsin Store – leased
24,583 sf – former La Z Boy space• CVS Pharmacy took over 13,000 sf of the former V
Richards space Waukesha South
• Shoppes at Fox River – Target/ Pick ‘n Save anchored development – Phase I almost 100% leased
• Walmart Supercenter opened last week – 176,000 sf
Southeastern Wisconsin – Active Submarkets
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The State of the Retail Market
Miller Park Way Corridor • GFS MarketPlace & Firestone – end user pad sales• Cermak Fresh Market – adjacent to Target
East Capitol Drive• Former Jewel store converted to a 3 tenant building
for Piggly Wiggly, CitiTrends, & AJ Wright West Allis Towne Center
• CitiTrends – 11,885 sf; Anna’s Linens – 8,200 sf; Fitness 19 – 6,000 sf
Bayshore • Sports Authority – 44,000 sf, Buffalo Wild Wings,
Orvis
Southeastern Wisconsin – Active Submarkets
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The State of the Retail Market
Market recovery underway Mid-boxes returned to the market Discount retailers are thriving Attractive rental rates brings new activity Most market activity involved infill sites & existing
shopping center space Grocery category continues to evolve in SE WI Lack of new development Land deals limited to end user buyers Lack of financing for spec development and land
purchases
Southeastern Wisconsin – 2010 Summary
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The State of the Retail Market
ICSC predicts a 3% to 3.5% holiday sales increase over 2009 – largest since 2009
Look for occupancy rates to continue to recover Rental rates will improve as available space tightens The big box discount/ grocery chains will continue to
drive new development in the market Retailers will continue to look to existing vacant space
to satisfy their expansion requirements The “next generation” of national retail concepts will
start to expand in the market
Southeastern Wisconsin – Outlook for 2011