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Keeping An Eye On The Future

Statistics look good in much of the Southwest, with growth up, unemployment down and people interested in doing business throughout the region.

"Retail activity in the Southwest is exceptionally strong," says Michael A. Pollack, president of Chandler, Ariz.-based Michael A. Pollack Real Estate Investments. He speaks from experience: His company has grown from a small, 23,000 sq. ft. center he purchased several years ago to a privately held retail portfolio of 1.6 million sq. ft. in various locations throughout Arizona.

"Arizona, for instance, has the nation's highest job growth creation rate - 4.7% or about 92,000 jobs - and the population continues to increase," Pollack says. "New home and apartment construction is very strong. As they say, retail follows rooftops."

Such statistics are welcome to those in the retail trade, as new tenants compete for space and developers carefully consider new projects. But prudence is the watchword.

"I would caution today's developers not to repeat the mistakes of the past," Pollack says. "Developers should build for a need, not because money to develop is readily available."

Pollack is not alone in his view. In Texas, Arizona, Nevada, Oklahoma, New Mexico and Arkansas, retailers are prudently expanding, developers are carefully evaluating their plans, and builders, bankers and others have a wary eye on the future. While acknowledging that the region is currently enjoying strong economic growth, they concede nothing lasts forever.

Andrew "Drew" Alexander, president of Houston-based Weingarten Realty Investors (WRI), one of the Southwest's major shopping center developers, says those in the industry are aware of an undercurrent of change. There are concerns about the spread of the Asian and Russian flus, he notes, as well as the possibility of a more sluggish national economy.

"There will be some slowdown in the amount of new retail space built," Alexander says. "The Texas economy, for instance, will remain strong, but just as the U.S. is not an island unto itself in the global economy, Texas is not an island unto itself in the national economy."

Mickey Ashmore, president and CEO of Dallas-based United Commercial Realty (UCR), has a similar feeling about the Southwest's retail industry: "It's not going to continue to rocket as it has been."

While future retail growth throughout the Southwest is expected to slow and there are some disconcerting signs, most developers and retailers paint a vivid picture of the region's future.

Developers like Jim Pederson, president of The Pederson Group, Phoenix, still like what they see - "at least with our country," he adds. "It looks like interest rates are going in the right direction and the GNP is progressing at an attractive pace. Indicators are positive, providing the stock market doesn't experience more of a correction. We're doing our projects with a lot of confidence."

And as states in the Southwest continue to report strong economic data, retailers, attracted by such impressive figures, are flocking to the area.

Texas Texas remains strong in economic growth, says Frederick J. Meno, senior managing director of Insignia/ESG retail group, Dallas. "The state has an annual economic growth rate of 4% vs. the U.S. average of 3%, a labor force growth of 3% vs. 2% for the U.S., and a population growth rate of 2% annually, compared with a 1% average for the U.S."

The Texas Comptroller's Office reports the Lone Star State's unemployment rate was down sixth-tenths of 1%, to 4.8%, in July of this year compared to July 1997. During the same period, employment was up 3.1%, retail sales up 6%, new business incorporations up 7.9% and new home construction permits up 33.5%. Added to this is the fact that the population is forecast to increase 1.7% this year to 19.8 million.

Accordingly, retail activity is strong. Herb Weitzman, president and chief executive officer of The Weitzman Group, Dallas, says overall retail occupancy at mid-year in Dallas, for example, was 89%, the highest level since the previous market peak in 1984. Retailers are expanding, he adds.

"Hobby Lobby plans 17 stores, Michael's is opening four to six stores this year and The Cheesecake Factory is opening its first location, as is Wild Oats Market." Weitzman says. "Gateway 2000, a computer retailer, is opening its second Texas location."

Dallas expects to add more than 1 million sq. ft. of retail space this year, adds UCR's Ashmore. "We're seeing mostly grocery-anchored centers," he says. "Also, tenants like Polo, Tower Records, Virgin Records and the Gaps of the world are expanding in this market, so it's a real opportunity for lifestyle and high-end specialty centers. Movie theaters also are a big growth area. I think we're going to see fewer power centers but more community-oriented, Main Street specialty centers."

Nordstrom is coming into the area, says Insignia's Meno, while stalwarts Walgreens, Tom Thumb and Eckerd are expanding. "Old Navy is also expanding to new locations, as are Michael's and Stein Mart. We have had some store closings - Montgomery Ward and JCPenney pulled out from a couple of locations to focus on newer stores," Meno adds.

WRI's Alexander notes that there is a shifting of some retailers in Texas. "Costco just announced they're coming to the area, but Crown Books is leaving Texas," he explains. "There is some shakeout in the computer industry, with consolidation. We recently read that CompUSA, with the combination of Computer City, may close stores. But drugstores continue to do freestanding sites, and we're seeing lots of expansion in the retail grocery sector."

Houston is expected to add 2 million sq. ft. of space, down 20% from the previous year. Major projects include Katy Mills, a 1.7 million sq. ft. retail development, and Houston Premium Outlets, an 800,000 sq. ft. project. Both are expected to open in 1999.

San Antonio also has a vibrant retail market, with occupancy at 90% compared with 85% two years ago, according to The Weitzman Group. Retailers new to the area include California Pizza Kitchen, Kid to Kid, Star Furniture, Noodle Kidoodle, and 24-Hour Fitness.

Arizona Arizona spells growth with a capital "G." The state had the highest job growth rate in the country, 4.7% in August, according to the U.S. Bureau of Labor Statistics. The state ranked 25th in the country with an unemployment rate of 4.2% in August, down from 4.4% in August 1997.

At the same time, Arizona's population is expected to increase 2.8% this year, according to the U.S. Census Bureau, and Arizona State University's College of Business reports aggregate retail sales are expected to rise 5% this year to $44.5 billion.

Because of the state's rapid population growth, there's been tremendous pent-up demand for retail. Accordingly, retail vacancies are at historic lows, analysts say, and rents have increased.

"We're seeing an increase in specialty retail coming to Arizona, particularly Phoenix," says Greg Abbott, senior associate in the retail services group of Grubb & Ellis' Phoenix office. "We're underserved in the entertainment, specialty-type retail business, and we have 10 million visitors annually who come to Phoenix. Retail sales were up some 34% around the new Bank One ballpark, for instance."

Abbott adds that there has been a resurgence of retailers coming to the area, including Home Depot competitors Lowe's and Eagle Hardware. "Nordstrom just entered the market. Tiffany & Co. is looking here, and there are lots of new restaurants," he continues. "We're seeing young professionals with income to spend now visit Arizona. In the past, it's been more an older set of people, the retirees who play golf."

David Larcher, vice president at Phoenix-based Vestar Development Co., adds that Wal-Mart is bringing its supercenter concept into Arizona. "So they'll be supplementing or relocating their existing stores." he says. "Target continues to expand, and we're seeing some smaller specialty retailers like Zany Brainy being active."

Nevada Retailers and developers continue to gamble on Nevada. The state is experiencing the country's second highest job growth - at 4.5%, or 40,000 jobs, according to the U.S. Bureau of Labor Statistics. Nevada's unemployment rate was 4.2% in August, up from 3.9% a year ago. In 1998, the state was reporting a 4.9% increase in population.

But there are signs that the economy is cooling somewhat from its overheated days. Nevada's taxable sales increased a modest 1.45% in May with gross gaming revenue up only 0.75%, according to the Nevada Department of Taxation.

Kit Graski, first vice president in the Las Vegas office of Los Angeles-based CB Richard Ellis, notes that a number of new retailers are expected to locate on the Las Vegas Strip, including Rainforest Cafe, Studio 54 and Duty Free Shops. New to the suburban marketplace this year include Babies 'R' Us, National Tire & Battery, Rite Aid and Paddock Pools. "The state of Las Vegas retail continues to be healthy, with vacancy rates in the 3% to 7% range in the various submarkets," Graski says.

Charles Creigh, principal of Las Vegas-based NewMarket Advisors, one of Nevada's leading real estate firms specializing in tenant and buyer representation, says the Las Vegas Valley is still the fastest growing area in the United States, and anchor retailers, restaurants and grocery stores are entering and expanding in the market.

As the masterplanned communities of Summerlin, Peccole Ranch, Green Valley South, Seven Hills and others expand, new shopping centers - both neighborhood and power centers - are being planned in these areas. A new regional mall also is being considered in Summerlin.

Oklahoma "Oklahoma's economy is the best I've seen it in 15 years," says Scott Sutherland, regional vice president in the Oklahoma City office of Chicago-based General Growth Properties Inc. The state reported a 4.2% unemployment rate in August this year, which was 28th in the nation. That compared with 34th in the nation during the same period a year ago, according to the U.S. Bureau of Labor Statistics. Job growth this year was pegged at about 2.7% - or about 37,000 jobs - by the Bureau.

"There's a lot of growth, especially in the Edmund and Norman markets," both suburbs of Oklahoma City, says Sutherland. "In the northern and southern parts of Oklahoma City, there is a tremendous amount of retail. I think retailers look at Oklahoma as a geographical area that doesn't experience big swings in the economy, and they know what they're getting. Oklahoma is in the middle of the country, and it tends not to be on everyone's No. 1 list, but retailers are coming to the state."

Tulsa's economy also is vibrant. For the year ending March 1998, 14,400 jobs were added, amounting to a 3.9% increase - the highest rate in eight years. The city's current rate of unemployment is 2.7%.

Thanks to the state's healthy economy, occupancies are trending upward, rents are rising and absorption is strong. The Oklahoma City market, analysts say, is almost in equilibrium, with little excess space and little excess demand. There doesn't appear to be many new retail projects on the drawing board, either. Price Edwards & Co., an Oklahoma City-based full-service commercial management, leasing and brokerage firm, says spring occupancy for the city's 20 million sq. ft. of retail was 91.1%, up 1.4 percentage points from the previous fall.

"We are seeing some expansion of regional and national tenants," says Carl Edwards, managing partner of Price Edwards. "Not much new construction has been going on. Freestanding boxes for specific retailers have been built; new tenants such as Lowe's, Just For Feet, and Old Navy are coming in; and there is very little spec construction."

He adds that retail has been reasonably healthy. "We've seen some rental increases, and vacancy rates are declining in the good centers to less than 10%," Edwards says. "Even in the marginal centers, the vacancy is only 10% to 12%."

A number of new stadium-type theaters are being built in the area, he adds, by companies such as Regal, Hollywood and AMC. "It remains to be seen which of those will survive," he says.

New Mexico While retail activity in New Mexico is vibrant, job growth is slowing somewhat, analysts say. The New Mexico Department of Labor reported job growth in August of 1.4%, about 10,000 jobs over the year, compared with the U.S. rate of 2.6% . The state's population increased 1.1%, close to the national average of 0.9% to 1%. At the same time, New Mexico reported the third highest unemployment rate in the country in August, 6.4%, up 13% from a year ago.

Still, retail projects in Albuquerque are 90% to 92% occupied, notes Bob Feinberg, president of Albuquerque-based First Commercial Real Estate Services. "There's been a tremendous amount of new space over the past several years," he says. "Lowe's has been talking about coming here. There have been some consolidations too, with Lucky Supermarket, Sav-OnDrugs and others. There has also been a lot of new movie theaters coming to town here and in Santa Fe. The competition for screens has heated up."

Arkansas Arkansas' unemployment rate for August was 4.5%, down from 5.3% a year ago, according to U.S. Bureau of Labor statistics. Job growth was 1.5%, or 17,000 jobs, ranking it 32nd in the U.S.

According to Arkansas Business magazine, occupancy in the greater Little Rock retail market dipped slightly to 91.2% in 1998, down from 91.5%. New retailers to the area include The Sports Authority and CompUSA. The retail sector is still dealing with the recent bankruptcy of Harvest Foods grocery chain, which has created vacancies.

ARIZONA * Phoenix-based Westcor Shopping Centers has three new developments in the works. The Shops at Gainey Village in Scottsdale will be a 135,000 sq. ft. upscale shopping center featuring shops, boutiques, trendy eateries and fine dining establishments to be completed in fall 1999. The center eventually will be incorporated into hotel and luxury office developments. Also in Scottsdale, the company is developing The Village at Chauncey Ranch, a 200,000 sq. ft. specialty retail center that will include 50 upscale shops and restaurants with curbside parking when it is completed in fall 2000. Peripheral developments of upscale shops, restaurants, hotels, offices and entertainment venues also are planned.

In Chandler, plans are in the works for SanTan Fashion Center, a 420,000 sq. ft. regional shopping center with five department stores and upscale shops and restaurants. It is expected to be completed in spring 2001. A 115,000 sq. ft. outdoor village also will be developed featuring shops, services, restaurants and a 100,000 sq. ft. multiscreen movie theater. No tenants have been named.

* Renovation work is under way to update the image of Fiesta Mall in Mesa. The 1 million sq. ft. center, which opened in 1979, will reflect its surrounding area when it is completed in third quarter 1999. The mall's five courts and food court will showcase the colors and textures of the desert from dawn to dusk. Fiesta Mall is managed by The L&B Group, Dallas. Anchors include Macy's, Dillard's, Robinsons-May and Sears.

* Plans are in the works for The Scottsdale Waterfront, a 600,000 sq. ft., pedestrian-oriented town center with streetfront retail. Located in the heart of downtown Scottsdale, the water-themed project will feature upscale national, regional and local retailers and restaurants, as well as theater, office and residential components. It will link Scottsdale Fashion Square with the historic, old-town shops of the 5th Avenue Arts & Gallery District. Expected to get under way in first quarter 1999 and be completed in fall 2000, the project is being developed by a joint partnership of Scottsdale-based Mashburn-Hope Ltd. and Greenwich, Conn.-based Starwood Capital Group.

* Phoenix-based Eisenberg Co. plans to develop Safeway Shopping Center, a 116,000 sq. ft. neighborhood project in Glendale. Expected to be completed in May 1999, it will be anchored by Safeway store and will include 30,000 sq. ft. of shop space and five outparcels.

* Chandler-based Michael A. Pollack Real Estate Investments plans to renovate Paseo Del Oro, a 95,959 sq. ft. center it recently acquired in Chandler. Work will include replanting trees and shrubs, resurfacing a pad site, repainting, and replacing roof tiles. Anchors include LA Fitness, Peter Piper Pizza and Metropolitan Mattress.

Renovations were completed this year at Pollack Southwind Plaza, an 86,560 sq. ft. center in Tempe, and Flowing Wells, a 78,638 sq. ft. center in Tucson. At the Tempe center, work included resurfacing the parking lot, new landscaping, new exterior paint and some roof repair. Tenants include Terri's Consignment, Classic Oak Furniture, Vine Restaurant, John Henry's Restaurant and Laser Dome. Flowing Wells was completely renovated with a resurfaced parking lot, additional landscaping, new fascia and tile, new paint, support columns, air conditioning units, glass and lighting. Sav-A-Lot grocery mart anchors the center.

* Redevelopment work is expected to be completed in first quarter 1999 on Paradise Square, a 105,678 sq. ft. neighborhood center in Phoenix. Anchored by Fry's Foodstore, it is owned and managed by Newport Beach, Calif.-based Donahue Schriber Realty Group.

* The City of Chandler has three developments in the works, the largest of which is Chandler Pavilions. It is a 115-acre project that includes both power center and specialty retail development. Tenants have already started opening at the power center, which will encompass nearly 800,000 sq. ft. of big-box, specialty shop, hotel, entertainment and restaurant development. Anchors include Home Depot, Golfsmith, CompUSA, Borders, Sam's Club, Toys 'R' Us and Bed Bath & Beyond. The specialty retail component, Casa Paloma, will feature 160,000 sq. ft. of upscale shopping and dining in an open-air environment when completed in fall 1999. A.J.'s Purveyors of Fine Foods will anchor the center. Ray-10 Devco LLC is developing the power center portion of the project, and DeRito Partners is developing the specialty retail component. Both companies are based in Phoenix.

Also in the city, work is under way on Chandler Gateway West, a 50,000 sq. ft. specialty retail/restaurant cluster development that will feature Outback Steakhouse, Carrabba's Italian Grill and Charleston's Restaurant. A development of Phoenix-based Remediation Financial, it is expected to be completed in spring 1999.

Currently under construction in Chandler is Club Disney, a 20,000 sq. ft. educational and entertainment complex for children and their parents. Expected to open in spring 1999, the freestanding building also will feature specialty retailers in shop space behind Club Disney. The main center is expected to be completed in late 1999.

* Phoenix-based Vestar Development Co. has three new power/entertainment center developments in the works. Mesa Grand is a 535,000 sq. ft. project in Mesa that is scheduled to get under way this month with completion in September 1999. Tenants will include the city's first Wal-Mart SuperCenter, a 24-screen AMC Theatre, PetsMart, OfficeMax, Half Price Books, Macaroni Grill, Chili's, Don Pablo's and Marie Callender's.

In Phoenix, construction will be completed next month on Deer Valley Towne Center, a 525,000 sq. ft. development featuring a 30-screen AMC Theatre, Target, Ross, OfficeMax, PetsMart, Michael's, Macaroni Grill, Chili's and Claim Jumper Restaurant.

Also in Phoenix, Desert Ridge Towne Center, a 1 million sq. ft. project, will feature 13 anchor tenants and a 24-screen megaplex theater. The heavily entertainment-oriented complex is part of 336-acre Desert Ridge Commercial Center. Construction is expected to begin in June 1999 and open in October 2000. No tenants have been announced.

* Construction is scheduled to begin in early 1999 on The Canals of Scottsdale, a high-end, mixed-use project located on 30 acres in Scottsdale. Phase I, which will total approximately 1.1 million sq. ft. of space when completed in fall 2000, will include cultural, entertainment and theater attractions as well as high-end retail and themed restaurants. Central to the project will be the new 450,000 sq. ft. Museum of Progress, a Smithsonian affiliate. Plans also include educational exhibits, an African art museum, nightclubs, concert halls, live theaters, exclusive housing and approximately 420 hotel rooms. The project is being jointly developed by Scottsdale Waterfront South Associates and San Diego-based Excel Legacy Corp. The Phoenix office of Los Angeles-based CB Richard Ellis is handling leasing.

NEW MEXICO * Expansion work is expected to be completed this month at Country Club Plaza in Rio Rancho. Approximately 11,000 sq. ft. of in-line space, which has been preleased to CRC Computers, Salon DeLuxe, Replay Games and $1.50 Cleaners, was added to the existing 109,850 sq. ft. neighborhood center. Anchored by Furr's Supermarket, Country Club Plaza is owned by Vista, Calif.-based Pan Pacific Retail Properties Inc.

NEVADA * A summer 1999 completion is expected for El Dorado Village, a 107,179 sq. ft. neighborhood center in North Las Vegas. The 10-acre site will be anchored by Albertson's and a drugstore. Newport Beach, Calif.-based Donahue Schriber Realty Group is the developer.

* Construction is scheduled to begin in mid-December on Neonopolis at The Fremont Street Experience in downtown Las Vegas. The 205,000 sq. ft. urban entertainment project will be a three-level, open-air center anchored by Mann Theatres. Las Vegas-based World Entertainment Centers (WEC) is developing the center, which is expected to be completed in November 2000. WEC and The Prudential Insurance Co., Newark, N.J., will jointly own Neonopolis once it opens.

* Work is under way on the redevelopment of Sahara Square Shopping Center in the Las Vegas Valley area of Clark County. Expected to be completed in summer 1999, the new 95,234 sq. ft. center will feature a 57,708 sq. ft. Lucky Market, a 15,481 sq. ft. Sav-On drugstore and 24,045 sq. ft. of specialty space. It is a project of Las Vegas-based Laurich Properties Inc.

* San Diego-based TrizecHahn Centers and Santa Monica, Calif.-based Gordon Group Holdings Ltd. recently opened the Fashion Outlet of Las Vegas in Primm. The 400,000 sq. ft. enclosed, upscale outlet center features approximately 100 stores and themed restaurants. Tenants include Last Call from Neiman Marcus, Donna Karan, Williams-Sonoma, St. John Knits, BCBG, Jhane Barnes, El Portal and LaCoste. Los Angeles-based MCG Architects designed the center.

TrizecHahn also is developing Desert Passage, a 450,000 sq. ft. retail/entertainment complex at the Aladdin Hotel and Casino in Las Vegas. Expected to open in spring 2001, Desert Passage surrounds the 7,000-seat Theater for the Performing Arts and adjoins the 2,600-room Aladdin Hotel and Casino, a 1,000-room music-themed hotel, and a London Clubs International gaming salon, all of which attract upscale customers.

* Construction continues on The Venetian Resort Hotel Casino in Las Vegas. The first phase of the complex will consist of a hotel tower with 3,036 suites, approximately 115,000 sq. ft. of casino space, more than 500,000 sq. ft. of retail space and, together with the Sands Expo & Convention Center, approximately 1.6 million sq. ft. of convention/meeting space. The upscale, indoor retail center, known as The Grand Canal Shoppes, will feature a Venetian streetscape with piazza-style settings, arched bridges, and gondolas that will transport shoppers along the Grand Canal and deliver them to the steps of sidewalk cafes and shops. Scheduled to be completed in April 1999, the retail component of the project will be managed by Cleveland-based Forest City Commercial Management.

OKLAHOMA * Chicago-based General Growth Properties Inc. is updating two of its malls in the state. At Sooner Fashion Center in Norman, located 15 miles from downtown Oklahoma City, Stein Mart joined the anchor lineup last month and Dillard's will be expanding its store in 1999. Other anchors include JCPenney and Sears. New specialty stores at the 500,000 sq. ft. center include Gap and Victoria's Secret. Renovation work also is planned for next year.

In Oklahoma City, 1.2 million sq. ft. Quail Springs Mall will be home to a new 24-screen AMC Theatre next month, joining anchors Dillard's, Foley's, JCPenney and Sears. Other work at the center includes an updated and reconfigured food court with plans to renovate the entire center, including new flooring, more skylights and handrails, in 1999.

TEXAS * Indianapolis-based Simon Property Group has several projects under way in the state. In Hurst, North East Mall is being expanded and renovated. Nordstrom and Saks Fifth Avenue will join in fall 2000, Dillard's is building a new store with completion set for summer 1999, JCPenney is expanding its store and Montgomery Ward is remodeling. Sears also anchors the center. In addition, the mall is being expanded by 60,000 sq. ft. and renovated. When completed, the center will total 1.7 million sq. ft. The Dallas office of Baltimore-based RTKL is designing the project.

Adjacent to the mall, Simon is developing The Shops at North East Mall, a 372,897 sq. ft. center that will be anchored by T.J. Maxx, Cost Plus, OfficeMax, PetsMart, Michaels and Bed Bath & Beyond when completed in November 1999.

Simon also is expanding and renovating La Plaza Mall. Dillard's will join existing anchors JCPenney, Foley's, Sears, Service Merchandise and Joe Brand in March 2000, and 90,000 sq. ft. of specialty space will be added later that year. A renovation of the mall is expected to be completed in November 1999.

In a joint venture with Roseland, N.J.-based Chelsea GCA Realty Inc., Simon is developing Houston Premium Outlets about 20 miles west of the city. Being built in three phases, the 800,000 sq. ft. upscale, fashion-oriented outlet center will feature Off 5th-Saks Fifth Avenue Outlet and Tinseltown movie theater. Phase I is expected to be completed next year.

* Cleveland-based Developers Diversified Realty Corp. and Irving, Texas-based David Berndt Interests Inc. are teaming up to develop a 700,000 sq. ft. community center in Round Rock, just north of Austin. Construction will begin in spring 1999 with an estimated fall 2000 opening. Up to 10 anchors, 45,000 sq. ft. of specialty retail space, an 80,000 sq. ft. theater, and 12 outparcels for specialty retailers and theme restaurants are planned. No tenants have been announced.

* The Fountains on the Lake shopping center in Houston is being expanded by 50,000 sq. ft. with an estimated completion of next year. The existing 600,000 sq. ft. retail/entertainment complex features Borders Books and Music, Stein Mart, Loews Theatre, Hobby Lobby, Oshman's SuperSports, Off Fifth-Saks Fifth Avenue Outlet, Travel Expo, Chair King, OfficeMax, Old Navy, Rack Room Shoes and Bed Bath & Beyond. It is a development of Houston-based GORCAP LLC.

* A 1.3 million sq. ft., two-level superregional mall is proposed for Frisco. Stonebriar Mall at the Bridges will feature four department stores; a third-level, multi-screen theater; and approximately 300,000 sq. ft. of GLA, plus up to 80,000 sq. ft. of big-box users and four sit-down restaurants. Being developed by Chicago-based General Growth Properties Inc., the center will feature Macy's, JCPenney, Nordstrom, Sears and AMC Theatre. Construction is expected to begin in summer 1999 with opening planned for fall 2000. The architect on the project is Berkeley, Calif.-based ELS/Elbasani & Logan Architects.

* Dallas-based North American Properties is renovating Crossroads Square Shopping Center, an 88,000 sq. ft. Tom Thumb-anchored shopping center in Southlake. The project is expected to be completed in June 1999. In addition, the company completed the development this year of Shiloh Square Shopping Center in Garland. The 85,279 sq. ft. project is anchored by Winn-Dixie. Construction on specialty space at Coppell Town Center in Coppell also was completed recently. The 90,000 sq. ft. shopping center will be anchored by Tom Thumb grocery store, which will open in 1999.

* Huebner Oaks Center, a 400,000 sq. ft. lifestyle center, opened last month in San Antonio. A project of The Jaffe Cos., Austin, Texas, the new development features a 24-screen AMC Theatre, Gap, Borders, Talbots and Bed Bath & Beyond.

* Dallas-based Lincoln Property Co. has worked on several projects this year. The last tenant finish-outs are being completed at Lincoln Park, a 150,000 sq. ft., upscale neighborhood retail center located in a mixed-use site in Dallas that features office space, a bank, townhome apartments and assisted living. Retailers include Barnes & Noble, The Container Store, The Cheesecake Factory and Simon David.

In Fort Worth, work will be completed this month on Trinity Commons, a 225,000 sq. ft. upscale center featuring Tom Thumb "New Generation" Market, Blockbuster, Learning Express, Hallmark, Sprint, Pappagallo and Starbucks.

In addition to these new developments, the company was responsible for redeveloping and retenanting Hancock Center in Austin. Tenants at the 412,793 sq. ft. shopping center include H.E.B., Old Navy, Mars Music, PETCO and HollywoodVideo. The project was completed earlier this year.

* Dallas-based Trammell Crow Co. is developing Fairway Plaza in Pasadena. The 220,000 sq. ft. community power center is expected to be completed in April 1999 and will be anchored by OfficeMax, Old Navy, Palais Royal, Michaels, PetsMart and Party City.

The company also recently completed two new developments. Uptown Collection is a 42,880 sq. ft., upscale specialty center in Houston. The center is located a half-block from Galleria Mall and features the city's first Kreiss Furniture and Capital Grille. Other tenants include Cafe Beignet and Edwin Watts Golf. In San Antonio, Alamo Quarry Market recently was completed. The 530,000 sq. ft. lifestyle center features Whole Foods, OfficeMax, Michaels, Act III Theaters, Old Navy, Borders Books, Pottery Barn and Bed Bath & Beyond. It is located on the site of the former operations quarry and home office of Alamo Cement Co.

* Houston-based CenterAmerica Property Trust LP has two projects under way in Houston. The first, Braes Link Shopping Center, is being redeveloped to make way for a new 14,000 sq. ft. freestanding Walgreens. Renovation of an existing building that will be home to 23,600 sq. ft. of retail and service tenants also is in the plans. When completed in January, the center will total 38,996 sq. ft. The company also recently completed several redevelopments of other neighborhood shopping centers in the state.

In addition, CenterAmerica is working on its first new shopping center development. The 133,000 sq. ft. project will feature a 62,000 sq. ft. Albertson's Food Store and 71,000 sq. ft. of smaller tenant space, including four pad sites. It is expected to be completed in February.

* Marq*E, a 360,000 sq. ft. retail/entertainment center, is being developed in Houston. A joint venture project between PLC Commercial and Edwards Theaters Circuit Inc., both based in Newport Beach, Calif., the center will feature 200,000 sq. ft. of retail and restaurant space, plus a 160,000 sq. ft. Edwards Cinema when completed in spring 1999. Baltimore-based RTKL's ID8 studio in Los Angeles is responsible for planning, architecture, place-making, cinema interior design and environmental graphics for the project, which will serve as a prototype for similar ones the developer is considering for various U.S. locations.

* Southlake Town Square, a 400,000 sq. ft. Main Street retail development, is under way in Southlake. Phase I of the project is expected to be completed in March 1999. Tenants will include Noodle Kidoodle, Animal Crackers, Victoria's Secret, Talbots, Eddie Bauer, Williams-Sonoma and Bombay Co. Southlake-based Cooper & Stebbins LP is developing the center, and Dallas-based United Commercial Realty is the leasing agent.

* The Mills Corp., Arlington, Va., and Kan Am, a Munich, Germany-based investment advisory company, are teaming up on the development of Katy Mills in Katy, located west of downtown Houston. The 1.7 million sq. ft. development will include 16 anchor stores, more than 200 specialty stores and a 1,000-seat food court when completed in fall 1999.

Tenants at the mall include AMC Theatre, Bass Pro Shops Outdoor World, Off Rodeo Drive, GameWorks, Burlington Coat Factory, Marshalls and Bed Bath & Beyond. Baltimore-based RTKL is providing architecture and environmental graphics services.

Southwest Development Projects Casa Paloma, the specialty retail component of Chandler Pavilions in Chandler, Ariz., is expected to be completed next fall.Continued on page 52Continued from page 48Continued on page 54Approximately 100 stores and themed restaurants make their home at upscale Fashion Outlet of Las Vegas in Primm, Nev.Continued from page 50Continued from page 51Continued on page 59Continued from page 56Mike Sheridan is a Houston-based freelance writer.

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