Big-Box Retail Is Still Thriving for These Tenants

Fryman: “Examples of Internet-resistant tenants are quick- and casual-serve and sit-down restaurants, Starbucks and cell-phone and tax-preparation services, plus medical, dental, optometrist, hair and nail services.”

CORONA DEL MAR, CA—The news about the demise of big-box retail doesn’t apply to Internet-resistant tenants, according to industry research and one Lake Elsinore, CA, deal in particular, Hanley Investment Group EVP Kevin Fryman tells GlobeSt.com. HIG recently represented the seller, a family trust from Orange, CA, and seller, a private investment partnership based in Murrieta, CA, in the sale of Oak Grove Crossing, a 22,577-square-foot shopping center shadow-anchored by Target in Lake Elsinore, CA. The purchase price was $11.6 million.

Fryman, who represented the seller while HIG associate Jeff Lefko and EVP Bill Asher represented the buyer in the transaction, tells GlobeSt.com exclusively that while much has been reported about the failure of big-box retail, Internet-resistant tenants are still thriving in this space. He says according to CoStar, in the Inland Empire, between January and July 2016, in the category of multi-tenant stabilized retail (shadow anchored and non-shadow anchored), there were 11 transactions with a gross transaction volume of $74 million. In 2017 for the same period, there were 21 transactions with a gross transaction volume of $144 million, a clear leap.