Regency Centers Plans Kings Park Shopping Center Expansion
- Jun 20, 2014
The Washington, D.C., retail sector is enjoying a good 2014. The steady job creation and strengthening sales activity have encouraged local retailers to expand. And Regency Centers, a national owner and developer of grocery-anchored shopping centers, is doing just that. The company announced earlier this week that one of its shopping centers in Northern Virginia will be getting an updated facelift, enhanced common areas and structural expansion.
The Kings Park Shopping Center is a 92,905-square-foot community center located in Burke, Va., within a heavily trafficked area. Regency Centers said in a news release that the shopping center is now fully occupied. Its tenant roster includes nationally recognized tenants such as Giant, Domino’s Pizza, Subway, CVS and many others.
“When Giant expressed a desire to expand their existing 28,161-square-foot store to 52,000 square feet, we saw the opportunity to improve the center overall and provide long-term benefit to the community,” Alan Roth, senior vice president & senior market officer for Regency Centers, said in a statement. “Giant will close its store June 19th and build an expanded store to serve the 125,000-plus residents within three miles of Kings Park.”
Regency Centers is looking to enhance the overall customer experience. Plans call for an updated façade, improvements to the parking lot, new landscaping and new patio areas. The façade enhancements are scheduled to start in July. Regency Centers hopes to complete common area enhancements by November. The entire project is scheduled to be finished by next spring. The company did not disclose the cost of the project.
“Burke currently sits around five thousand people per square mile. We always want to make sure our customers can get what they need without too much congestion. Now we are giving them a little more breathing room and allowing Giant to expand their store and their offerings for the community,” Roth added.
According to Marcus & Millichap, the retail vacancy in the Washington, D.C., area was 5.4 percent at the end of the first quarter, the lowest it’s been in five years. And the brokerage firm expects vacancies to continue to drop to 4.9 percent in 2014, as retailer demand strengthens and net absorption exceeds new inventory additions. Meanwhile, average asking rents reached $23.97 per square foot in the first quarter, marking an annual increase of 4 percent. And as vacancies continue to fall, that should keep rising, by an anticipated 2.5 percent to $24.44 per square foot in 2014.
Photo credit: Regency Centers