water as a true example of a mixed-use development becoming the town’s center:
The property will feature residences, 61,000
sf of retail and the town’s municipal building, which is relocating to the site.
For those who live off-site, the town center portions of mixed-use developments are
attractive for a number of reasons. They
are often located
closer to home, and
thus are more convenient than a regional mall.
“With people having such busy lives,
the element of convenience is critical,”
says Greco. “People don’t have the luxury
of a lot of time to shop anymore.”
Instead of the usual setup of a regional
mall, where shoppers have to park where
they can, enter and locate the store they’re
looking for, customers can pull up right in
front of the store they want at the town center, run in and then drive off.
The visual appeal of the centers helps attract retail tenants. “It’s interesting, because
it’s really a throwback to the 1950’s,” says
Lanyard. “A town center is not like your
typical strip center. Each store has its own
identity, sometimes the stores are set back
or forward a few feet to give them their own
presence, and it really is a nice, clean-cut
look like the old downtowns.”
“Retailers like the open-air environment
because they have exposure and visualization from the outside with signage and
storefront,” says Silbert.
The pleasant, park-like environment attracts shoppers to the property: “There are
usually walkways and park benches and a
lot of nice greenery and trees to give you a
comfortable feeling,” says Lanyard. “
Developers are spending a lot more money
to do this type of look compared with the
old strip centers, and it’s paying off because tenants want to be there too.”
Besides the pleasant surroundings, people are coming to mixed-use developments
for the restaurants. “Restaurants are becoming very important components to retail projects, really serving as anchors to
projects, attracting people and having them
spend time in locations,” says Harding.
“A strong restaurant element is key to a
lifestyle center,” echoes Joe Morris, vice
president of commercial leasing and marketing, Edgewood Properties, Piscataway.
Restaurants and retail often feed off each
other in these developments—people come
to shop and need to eat, and people waiting
“Including retail in an otherwise
residential development makes
it more exciting and could raise
the value of the housing.”
MICHAEL STONE
Cushman & Wakefield
for tables often want a nearby distraction.
“People waiting for the restaurants aren’t
going to want to just sit around, they’ll want
to go and browse. If you have that vibrancy,
that chic place to be seen and to go to, that’s
going to propel the late-night business of
much of the retail,” says Morris.
Of course, the biggest draw for mixed-use
is the fact that the retail component has a
resident audience, and in New Jersey, that
audience usually has a high disposable income. “Residents targeted for these projects
are often empty nesters,” says Greco. “
Families that have lived in an area for many
years have the opportunity to move into a
smaller, high-end rental property or condo
in the town they’ve lived in for 30 years.”
Residents moving into mixed-use developments, plus the fact that the development
doesn’t need to have as wide a reach as a regional mall, allow for customization. Many
include luxury housing, attracting high-end
retailers. Developments with offices attract
what Silbert refers to as “service retail”—
banks, office supply stores and the like.
“Retailers like mixed-use because it adds
character and activity to the site, and having
a successful retail component adds character and a certain set of amenities to prospective tenants,” says Harding.—RENJ
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