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looking to take limited spaces that
are available in shopping centers these days and rebuilding, reinventing the property around them.” Another LMC-managed project, Flemington Marketplace in Flemington, will feature a new Target in addition to existing anchors Kohls and Aldi, along with updated lighting and landscaping.
Ed Turkot, senior vice president of Saker ShopRites, added: “Having
a supermarket as an anchor gives
an ability to attract tenants that
you would otherwise not be able to attract, based on the foot traffic that you’re bringing into the location.” For instance, Saker recently relocated
a ShopRite from Piscataway to a larger space in South Plainfield’s Hadley Center, and other tenants are expected to follow.
Stephen Hittman of Crossroads Cos., a development firm specializing in grocery-anchored retail projects, said companies have a financial incentive to repurpose shopping centers.
“I think there’s probably less speculation, because the cost has doubled — in some cases more than
doubled — and I think the lending environment is
more difficult,”
said Hittman,
modified and there will be an in-store area for pickups and returns.
Matthew Casey, supermarket consultant and owner of Matthew P. Casey & Associates Inc. of Rahway, said dedicated pickup parking spots for online ordering and EV charging stations are catching on among larger tenants, typically as a means of staying competitive.
“I know most supermarkets hate online and home delivery,” he said. “Most of them don’t make money off of it. But since everybody does it, everybody has to do it,” given the rise in online ordering during the pandemic. Younger customers especially prefer to order online, he said.
Casey, who’s seen EV charging stations at the ShopRite in Columbia Park Center in North Bergen and at the Acme in Clark, said they can be placed in a little-used area of the lot and customers can shop while their car is charging.
“Not only does the tenant benefit, but the landlord is gathering newfound money,” he said.
Shopping center renovations
may also reflect New Jersey’s increasingly competitive supermarket environment. Casey said that while ShopRite and Wegmans get the highest customer counts on an individual store basis, Lidl and Aldi are expanding across the East Coast and perform strongly on a dollar-per- square-foot basis. The competition prompts existing stores to remodel in order to retain market share.
“Retailers do have to reinvest and modernize their stores,” Harding said. “Store sizes change over time, store configurations change over time, you see retailers relocating.”
For instance, when Bed Bath & Beyond went out of business, many tenants took over those empty spaces because they were better located.
“It’s a trend that’s been going on over the decades, but it’s really very active now,” he said. RE
Marlaina Cockcroft is a freelance writer based in New Jersey. She has written for other publications including New Jersey Monthly and School Library Journal.
CEO of the
Mahwah-based
firm. Banks
require a greater
down payment
and interest
rates are higher,
which puts constraints on real estate development, he said.
At the Watchung and West Orange properties, LMC wants to attract tenants that reflect customers’ tastes as well as how they shop.
“The mix of tenants in open-air shopping centers has changed over time,” Harding said, from moderate- priced apparel chains to bigger ones like TJ Maxx and Burlington as well as medical offices, gyms and casual restaurants. LMC is negotiating with a variety of tenants but hasn’t signed leases yet, he added.
To account for the increase in online shopping, the loading docks at
the Target in West Orange will be
Stephen Hittman
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