Carlsbad Is An ‘Underserved’ Retail Market
But, that is changing. Shea Properties is filling a much-needed void in the market for retail options, and the project is already 85% preleased.
“The Carlsbad market, when you compare it to other Southern California markets, is currently underserved with regard to retail; and that has created some fantastic opportunities,” Kiril McKee, SVP of retail leasing for Shea Properties, tells GlobeSt.com. “There has been a lot of new office built in recent years, and that has generated a need for more and better restaurant choices. It’s almost impossible to find a parking spot during the lunch rush at many of the area retail centers. And if you look at the Carlsbad housing market, there is a definite need for a more affordable point of entry for those looking to buy. Kensington at The Square, one of Shea Homes’ newest communities and adjacent to the center, will help fill that void.”
The retail market is undergoing a transformation, but Shea Properties has an optimistic outlook, especially in this market that is so in need of retail options. As a new construction property, the developer has an opportunity to shape the retail for success. “We like to look at it with a little more optimism. Retail, certainly, is in flux. For the past few years it’s been trying to figure out an identity in the shadow of the large online retailers,” says McKee. “But change comes to everything, and right now retail is realizing that in order to attract customers, it needs to offer something people can’t get through their phones, pads and computers. Food has become that main attractor—it’s the new anchor. People love to go out to eat, so the more restaurant options a center has, the more chance it has at bringing customers to the center. Service providers are also important—entertainment venues, fitness centers, health and beauty providers, daily needs. So, in the case of The Square at Bressi Ranch, it’s really more an issue of giving people what they need and want in light of this changing retail environment.”
While Carlsbad has been an underserved retail market, The Square at Bressi Ranch is on trend. It is an experiential center with places for locals to gather and dine. “The vision for The Square at Bressi Ranch was to not only provide a place for people to shop and dine, but also a place where people can gather or simply hang out,” says McKee. “The center is family-focused with attention placed on the experience as much as the retailers. The Square has two fire pits and seating areas throughout if you just want to sit and relax, and most of our restaurants will have patio seating so that our patrons can soak up the amazing Carlsbad weather. On the environmental front, The Square is forward looking with solar panels on the rooftops of the buildings, electric car charging stations, and bicycle lockers throughout.”
The tenant mix includes Bird Rock Coffee Roasters, Mendocino Farms, Casero, Richard Walker’s Pancake House and Panini Kabob Grill. The strong leasing activity shows the strength of the market and the need for retail. It also reaffirms Shea Properties investment. “Carlsbad, especially the Bressi Ranch neighborhood, is a solid, established trade area with strong residential and business components that will keep the shopping center busy both day and night,” says McKee. “It’s also an extremely desirable place to live and work because of the quality of life Carlsbad provides. It’s near the coast with a mild climate and so much to do in the surrounding areas. Carlsbad, compared to other locations, is underserved from a retail standpoint, and new options and opportunities are always appealing to retailers and restaurants alike. We’ve been able to sign some great tenants including, Mendocino Farms, Panini Kabob Grill, RW Pancake House and Bird Rock Coffee Roasters. Our first tenants will open in late 2018 or early 2019.”