Neighborhood Centers Continue to Lead the Pack
An example of neighborhood retail demand is the Mid Valley Shopping Center, a 62,480-square-foot Safeway-anchored multi-tenant center, which was recently acquired from the original developer family.
CARMEL, CA—Despite the strength of the local economy including the tourism industry, retail continued to face challenges in the first quarter of 2018, according to Cushman & Wakefield‘s latest research. Additionally, the closing and downsizing of stores as part of the strategic plan of many retailers after the 2017 holiday season contributed to the increase in vacancy in San Francisco and many parts of the Bay Area during the quarter. That pull-back was partially driven by the need to correct what had been an overexpansion of physical locations and a decision made to grow via e-commerce instead.
Finally, experience-oriented retail continued to outperform traditional merchandising, which has resulted in a pause in leasing activity while landlords and tenants rethink the best way to use space. Food-and-beverage remains one e-commerce-proof retail category and along with boutique fitness, will dominate leasing transactions for the foreseeable future. A continued demand for smaller and neighborhood retail spaces will be the norm.
An example of that type of neighborhood retail demand is the Mid Valley Shopping Center, a 62,480-square-foot Safeway-anchored multi-tenant retail center located at 9550 Carmel Valley Rd. This leasing and investor demand is especially robust, given that the original developer family had owned the property until just recently. The Stanley Group Inc. recently acquired the shopping center for an undisclosed purchase price, although GlobeSt.com learns that the center was listed for nearly $12 million and had as many offers.
The center is 97% occupied with tenants that include Safeway, Ace Hardware, Jeffrey’s restaurant and Carmel Valley Roasting Company. There are only three vacant retail spaces ranging in size from 940 square feet to 1,155 square feet.
The property is strategically located between Carmel proper and Carmel Village. Mid Valley’s proximity to exclusive resorts such as Tehama, Quail Lodge, Bernardus and Carmel Valley Ranch as well as local wineries, tasting rooms and restaurants make it ideally situated to a strong demographic pool. Its daily traffic count is 24,354.
“This is a high-quality asset in a market which has virtually no competition,” says Russel Stanley, president of The Stanley Group Inc. “This was a one-of-a-kind opportunity to purchase from the original family who built and developed the center. Its location, tenant base and curb appeal gives us a strategic advantage moving forward.”
Ryan Edwards of Mahoney and Associates and Josh Jones of Cushman & Wakefield brokered the transaction and represented both buyer and seller.