How to Land a Roster of Retail Credit Tenants

The emergence of ecommerce and experiential retail have made a certain class of national brand credit tenants in high demand. Retail owners are looking for retailers that are Internet resistant as well as retailers that provide stability well into the future. This is especially true for new retail properties, which are looking to curate a tenant mix that can conform to changing trends. The new Monrovia Landing from developer Warner Pacific Properties is anchored by a T.J. Maxx HomeGoods and an ALDI, and has signed additional tenants ULTA Beauty, Kids Empire and Tapioca Express, a roster of credit tenants that will keep a competitive edge.

“The leases that we have signed at Monrovia Landing are following the current trend in many markets, a mix of retailers that are less impacted by Amazon and e-commerce. They are ALDI, a discount supermarket, which anchors the center, along with T.J. Maxx, an off-price retailer; HomeGoods and ULTA Beauty, which are specialty retailers; Kid’s Empire, a children’s playground/entertainment user; and Tapioca Express, a Taiwanese-American food chain,” Michael Odell, principal with Warner Pacific Properties, tells GlobeSt.com. “All-in-all, we have established a great tenant mix that should be attractive to shoppers in Monrovia and the surrounding San Gabriel Valley.”

Discount or treasure hunt retailers have been particularly popular anchors tenants for their resistance to ecommerce and general popularity among consumers. Likewise, grocery stores have also been popular as a daily-needs retailer. “Those retailers that can offer what consumers can’t get online—value, convenience and/or experiences—will succeed. Savvy retailers are beefing up their online store and making it easier for customers to browse online and offering delivery and pick-up services,” says Odell. “They are offering personalized services and discounts. Shopping center owners are looking for ways to bring people to their centers and are using their public space to hold concerts, art shows, farmer’s markets, craft beer and wine tastings, health clinics, chef demonstrations, Yoga, martial arts, dance, etc. demonstrations, festivals, educational events, and other community-engaging events.”

In addition to focusing on Internet-resistant tenants, Warner Pacific Properties tried to secure tenants that would attract different demographics. “We have something for everyone at Monrovia Landing—from kids to adults, from car geeks to beauty queens and everyone in between; from daily-needs groceries and products to the best deals on home products and soft goods, and so much more,” says Odell. “These category leading, value-focused and necessity/grocery retailers provide a bulwark against internet competition, are excellent operators and drive traffic to the shopping center. Furthermore, the tenants were a great fit for the needs of the community.”

Current retail leasing trends confirm that discount retailers, grocery store and restaurants are among the most popular, so it is no surprise that this was the tenant mix that Monrovia Landing wanted for the property. Securing these tenants, however, can be challenging. Odell says that the location of the center was integral to securing this quality roster of tenants. “Monrovia Landing benefits by being a regional location in close proximity to the 210 Freeway @ Mountain and it is one of the last viable properties for retailers to expand in the local marketplace,” he says. “Site-specific, the center offers great visibility and frontage and a has a large parking field. Lastly, we want to give credit to Carol Springstead of Springstead & Associates who does an incredible job with leasing and really was the impetus for our successful efforts.”