BEACHWOOD, OH—DDR Corp., a self-administeredand self-managed REIT, earlier this year reported that itsportfolio was morethan 95% occupied, its highest level since 2008, andas part of a long-term plan to upgrade its tenants, has justunveiled an initiative to recapture space for high-quality anchorstore locations across its portfolio as the leases expire. Companyofficials say they will first collaborate with retailers in thebooks, electronics, toys, office and traditional department storecategories to right-size their real estate footprints before theleases expire, and then bring in market-share-winning tenants,realizing mark-to-market rental upside of 30% to 40%.

DDR has already identified 90 anchor locations with3.3-million-square-feet of prime retail space that meet itscriteria. And of these leases, DDR has finalized terms to recapture21 locations with 550,000-square-feet primarily located in Boston,Cleveland, Denver, Orlando, Phoenix, Raleigh and San Antonio.

"This initiative demonstrates our ability to create organicgrowth opportunities for our best-in-class retail partnersregardless of current portfolio leased rate,” says PaulFreddo, senior executive vice president of leasing anddevelopment for DDR. “Recapturing below-market leases represents anincremental growth opportunity to upgrade asset-level merchandisemix and NOI growth profiles, while simultaneously expandingredevelopment opportunities that will further enhance the qualityof our portfolio.”