TUSTIN, CA—Many retail landlords are dusting themselves off from the recession and are now ready to put money into design improvements at their centers, according to Matt Hammond, director of retail brokerage for Coreland Cos. This is a sign of continuing recovery for the sector, which has struggled to reinvent itself in the wake of the downturn and as a response to e-commerce.

As GlobeSt.com reported earlier this week, retail centers with strong fundamentals are beginning to move away from the “just keep it leased” mindset by seeking better-quality tenants with synergies that more accurately serve their local markets, Hammond tells us. His firm has recently been awarded four listing assignments by Watt Cos., one of which in particular calls for a focus on attracting these higher-quality tenants.

“Landlords are feeling comfortable with where we're at now in the retail sector, and now they feel it's time to improve their assets,” says Hammond. He adds that his firm recently leased up space in Cerritos Plaza at 13321 South St. in Cerritos, CA, a multi-tenant center built in the 1970s and anchored by Ralphs and CVS, and the owner of that property is ready for it to undergo a significant renovation. “It will get a new façade, signage, stonework and other upgrades. The owner feels comfortable investing money in it, knowing that they'll get higher-quality tenants because they're out looking for these spaces. Four years ago, they wouldn't have come, but we recently signed a lease there with Orchard Supply Hardware, a strong tenant.”

In addition to properties with strong tenants, those in high-traffic trade areas are also ripe for more strategic co-tenancies, says Hammond. Santa Fe Springs Marketplace, one of Coreland's most recent assignments, is one such center looking to attract tenants demanding quality locations in which to expand. “It's a very busy trade area with great daytime traffic and residential around it,” says Hammond. “All the elements are in place for it to be a strong center.”

The ultimate goal for centers like these is to drive value and raise rental rates. “You have to have the right tenants with a synergy to generate sales,” says Hammond. “Then, ultimately, other tenants will want to be there.”