Hartford Business Journal

www.HartfordBusiness.com • November 12, 2018 • Hartford Business Journal 9 FOCUS to have a spectacular holiday season," Gallon said. "I still believe people want to go out and have the brick- and-mortar experience. I think there will always be a place for it." However, Gallon has also wit- nessed some retail areas that have struggled with inactivity. Demand and development, for example, has been slow along the Berlin Turnpike, a 12-mile corridor connecting Berlin, Meriden, New- ington and Wethersfield, Gallon said. Big name national brands have mostly eschewed the area, save ongoing construction of a 7-Eleven in Wethersfield — Gallon thinks that's likely a competitive measure against a nearby Cumberland Farms. "(As far as) traditional retail, I don't see any national brands or even region- al or local retail as it relates to beautiful available spaces that sit empty on the Berlin Turnpike," Gallon said. Increasingly, Gallon is also seeing health-related businesses (think walk- in clinics, medical labs and fitness centers) set up shop in places former- ly occupied by conventional retailers. As a category, health and fitness businesses added 22,000 square feet over the last year, third most be- hind department and sporting-good stores, the KeyPoint report found. Club Fitness led the way, adding 34,000 square feet of space. Meantime, GoHealth Urgent Care opened its ninth and 10th locations in West Hartford and Windsor, re- spectively, this year. "Medical uses — minute clinics, dental offices, dental chains — are growing across the country, and look- ing toward retail shopping centers as a very viable place to locate," Sheehan said. It makes sense for landlords to rent to medical businesses, Gal- lon said. They're usually credit- worthy, willing to sign long- term leases and bring patients to strip malls. Hobby and toy stores, unsurprisingly, shed the most space over the past year (112,000 square feet), largely a result of the Toys R Us/Babies R Us liquidation. Drug stores also shed space — Rite Aid closed 10 locations leaving vacant 101,700 square feet; Walgreens, howev- er, absorbed some of that loss by adding seven stores and 74,900 square feet. Tenant's market When it comes to renting retail space, it's a tenant's market, said Mark D'Addabbo, a retail space broker and co-founder of New England Retail Properties Inc. in Wethersfield. Rents can be upwards of $30 per square foot in upscale developments like West Hartford's Blue Back Square, but can dip lower than $10 per square foot for an old square box building. "I would say as a landlord you have to be competitive," D'Addabbo said. "For the most part, the tenants still have the upper hand." But when it comes to development of retail space, D'Addabbo doesn't see much of an increase in central Con- necticut's future. Most of the prime spots for retail are developed, and many of the national retail brands that might build in the area already have a footprint here. "The retail areas are fairly well developed in this market area, so there's a lack of opportunity for a new development," D'Addabbo said. Meantime, compared to other spots in the region, downtown Hart- ford's a different animal, Gallon said. It's one of the few places developers PDS has been meeting the needs of the construction industry since 1965. Our dedicated team of design and construction professionals welcomes the challenge of serving its past and future customers on their most demanding projects. Liberty Bank | Hamden, Connecticut PDS Engineering & Construction served as Design Build General Contractor for this Liberty Bank facility. The project also included a second fl oor of apartment units and two other tenant spaces on the fi rst fl oor. The bank itself entails a teller area, offi ces, lobby, restrooms, break room, conference rooms, equipment rooms and an elevator. KEY FACTS Project Size: 7,300 Square Feet Date of Completion: 2014 107 Old Windsor Road, Bloomfi eld, CT 06002 (860) 242-8586 | Fax (860) 242-8587 www.pdsec.com DESIGN BUILDERS • GENERAL CONTRACTORS • CONSTRUCTION MANAGERS SPOTLIGHT ON: B PDS ENGINEERING & CONSTRUCTION, INC. THINK • PLAN • BUILD SUPPLY THE PAVEMENT MAINTENANCE INDUSTRY WITH A SEALMASTER FRANCHISE BUSINESS OPPORTUNITY * Offer made by prospectus only. Learn more at sealmaster.net or call (800) 341-7325 Protected Territories Available Throughout New England Distribute a Full Line of Pavement Maintenance and Sport Surfacing Products and Equipment. Top expanding retailers in Greater Hartford New space Total Retailers (sq. ft.) (sq. ft.) At Home 108,000 108,000 Walgreens 74,900 390,300 Burlington 51,200 243,400 Club Fitness 34,300 113,200 Saks Off 5th 27,000 27,000 Source: KeyPoint Partners Top contracting retailers in Greater Hartford Exited space Total Retailers (sq. ft.) (sq. ft.) Sam's Club 116,000 134,600 Toys R Us 112,400 0 Babies R Us 59,700 0 Rite Aid 101,700 22,200 Pilgrim Furniture 35,100 37,700 Source: KeyPoint Partners Top expanding retail category in Greater Hartford Retailers New space (sq. ft.) Total (sq. ft.) Department stores 78,200 4,047,300 Sporting goods 23,600 835,100 Health and fitness services 22,200 1,326,300 Telephone equipment 16,300 202,500 Beauty salons and services 14,800 1,168,000 Source: KeyPoint Partners Continued on next page >>

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