LOS ANGELES—Recently, several new-construction retailshopping centers have opened in the Los Angeles,illustrating an increase in demand for retail space. NadelArchitects has been the name behind the design for many ofthese centers, including the recently opened Juanita TateMarketplace, a $21 million grocery-anchored shoppingcenter. With new development in the retail sector just beginning topick up, we sat down with Greg Lyon, principal anddesign director at Nadel Architects, to discuss the drivers behindthis new trend and where it is headed.

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GlobeSt.com: You just completed two ground-up retailcenters. Do you see higher demand for renovation projects or newconstruction, and what is driving this demand?

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Lyon: We are continuing to see agrowing demand for ground retail destinations. The expansionof retail brands has shrunk the inventory of existing vacant spaceto a point where it has triggered an increase in demand for newground up retail space.

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GlobeSt.com: Where are ground-upconstruction retail centers being developed?

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Lyon: We are seeing ground-up retailcenter development occurring in all markets. Certainly theurban infill market was the first to return, however, now we areseeing the return of ground- up in suburban markets; both insouthern California as well as the North West markets. This isin part a response to the recovering housing market in theseareas.

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GlobeSt.com: What types of tenant mixes are ownersseeking for newly constructed properties?

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Lyon: We are seeing more of a focus ondining, health and active lifestyle retailers as a result of thegreat recession and the new paradigm that was born from it. . An unprecedented variety of new dining concepts findingtheir way into centers, and dining has become the new entertainmentanchor in retail destinations. There is an emphasis onquality, organic and locally sourced food that consumers of allages and demographics are seeking out. In addition, peoplenow realize the value of investing in their health over pureconsumerism. Athletic and fitness apparel lines are the newcasual wear. Retailers that offer health products, vitamins,supplements and personal technology items contributing to healthare all in demand. In addition, the increase in yoga studios,cross fit gyms and other models are all an indication of thislifestyle trend.

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GlobeSt.com: How are designs and amenities for newlyconstructed projects different than renovationprojects?

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Lyon: We are seeing the same designtrends in both the repositioning and ground up markets. A keyfocus is that of sustainability. This trend is not only dueto that fact that it is the right thing to do, but it is goodbusiness as well. The Millennial Generation is an altruisticgroup, concerned for the wellbeing of the environment. Just as theyare committed to a sustainable lifestyle in their own actions, theyexpect it from the brands they support. Millennials actuallyrecognize sustainable design, and are more likely to frequentretail destinations that provide and embrace sustainability.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.