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Redevelopment Initiatives to Solidify PREIT's Woodland Mall
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Pennsylvania Real Estate Investment Trust — better known as PREIT — is leaving no stone unturned to drive tenants and traffic at its malls. Recently, the company announced that an extensive redevelopment of Woodland Mall in Grand Rapids, MI, is underway.
Specifically, the company noted that construction has already commenced on the 90,000-square-foot Von Maur department store. The company has successfully recaptured this space, previously occupied by Sears (SHLD - Free Report) . Notably, this will be the brand’s debut store in the region and is anticipated to open in October 2019.
PREIT has also signed leases with other renowned tenants to bring new-to-portfolio and new-to-market retailers at the mall. While Urban Outfitters will debut in the market with its first store in the expansion wing in October 2019, the sought-after retailer — REI— will have a 20,000-square-footprint in May 2019. Additionally, Altar'd State is set to occupy 5,500 square feet of space this October.
The addition of these retailers will diversify the existing high-quality roster of tenants at the premium mall — including Apple, Pottery Barn, H&M and Forever 21 among others — and caterto the retail demand of the region’s solid shopper demographics.
With efforts to evolve its retail space with the latest upgrades and store prototypes, renovations will be made to Victoria’s Secret and Hollister space. Moreover, the company has inked a new 9,000-square-foot lease with Black Rock Bar & Grill to offer elevated dining experience from October 2019.
PREIT’s strategy of further strengthening the already-dominant asset in Western Michigan positions the property to capture high-income communities in the region. This overhaul will not only redefine shopping experience, it will also add significant value by driving net operating income (NOI) growth.
Admittedly, the shrinking mall traffic and store closures amid aggressive growth in online sales have kept retail REITs, including PREIT and others like Simon Property Group, Inc. (SPG - Free Report) and GGP Inc. ,on tenterhooks. In addition, tenants are demanding substantial lease concessions owing to a turbulent retail real estate market scenario. Nonetheless, retail REITs are countering this dreary situation and putting in every effort to enhance the productivity of malls, by trying to grab attention from new and productive tenants, and disposing the non-productive ones on the other hand.
PREIT, too, along with its remerchandising efforts, has resorted to a portfolio rejig, selling low productive assets and investing heavily in refurbishments and remerchandising to unlock embedded property value. Although such steps are likely to help PREIT efficiently tide over the lackluster retail real estate environment, portfolio-redevelopment measures entail considerable capitaland tend to drag margins in the near term.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Redevelopment Initiatives to Solidify PREIT's Woodland Mall
Pennsylvania Real Estate Investment Trust — better known as PREIT — is leaving no stone unturned to drive tenants and traffic at its malls. Recently, the company announced that an extensive redevelopment of Woodland Mall in Grand Rapids, MI, is underway.
Specifically, the company noted that construction has already commenced on the 90,000-square-foot Von Maur department store. The company has successfully recaptured this space, previously occupied by Sears (SHLD - Free Report) . Notably, this will be the brand’s debut store in the region and is anticipated to open in October 2019.
PREIT has also signed leases with other renowned tenants to bring new-to-portfolio and new-to-market retailers at the mall. While Urban Outfitters will debut in the market with its first store in the expansion wing in October 2019, the sought-after retailer — REI— will have a 20,000-square-footprint in May 2019. Additionally, Altar'd State is set to occupy 5,500 square feet of space this October.
The addition of these retailers will diversify the existing high-quality roster of tenants at the premium mall — including Apple, Pottery Barn, H&M and Forever 21 among others — and caterto the retail demand of the region’s solid shopper demographics.
With efforts to evolve its retail space with the latest upgrades and store prototypes, renovations will be made to Victoria’s Secret and Hollister space. Moreover, the company has inked a new 9,000-square-foot lease with Black Rock Bar & Grill to offer elevated dining experience from October 2019.
PREIT’s strategy of further strengthening the already-dominant asset in Western Michigan positions the property to capture high-income communities in the region. This overhaul will not only redefine shopping experience, it will also add significant value by driving net operating income (NOI) growth.
Amid these, shares of this Zacks Rank #3 (Hold) company have outperformed its industry over the past year. While its shares have rallied 5.6%, the industry has gained 2.6% during the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Admittedly, the shrinking mall traffic and store closures amid aggressive growth in online sales have kept retail REITs, including PREIT and others like Simon Property Group, Inc. (SPG - Free Report) and GGP Inc. ,on tenterhooks. In addition, tenants are demanding substantial lease concessions owing to a turbulent retail real estate market scenario. Nonetheless, retail REITs are countering this dreary situation and putting in every effort to enhance the productivity of malls, by trying to grab attention from new and productive tenants, and disposing the non-productive ones on the other hand.
PREIT, too, along with its remerchandising efforts, has resorted to a portfolio rejig, selling low productive assets and investing heavily in refurbishments and remerchandising to unlock embedded property value. Although such steps are likely to help PREIT efficiently tide over the lackluster retail real estate environment, portfolio-redevelopment measures entail considerable capitaland tend to drag margins in the near term.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>