Stirling Properties Welcomes Old Navy to Hammond Square
Stirling Properties commercial real estate company welcomes Old Navy to Hammond Square retail center in Hammond, Louisiana.
Image: Old Navy at Hammond Square exterior rendering
Old Navy will occupy 12,500 square feet of space on Main Street between Zales and Shoe Dept. Encore. Buildout and expansion of the store space are underway, with plans to open in the spring of 2019. Old Navy provides the latest fashions at great prices for the whole family, including men’s, women’s, women’s plus, kids’, baby and maternity wear.
This will be the 12th location for Old Navy with existing stores in many prominent retail centers across Louisiana, including other Stirling Properties developments such as Premier Centre in Mandeville and Stirling Bossier in Bossier City, Louisiana. Rhonda Sharkawy, Senior Retail Leasing & Development Executive with Stirling Properties, handled the lease transaction on behalf of the landlord.
“Stirling Properties is excited to finally welcome Old Navy to Hammond Square—our shoppers have been eagerly anticipating its arrival. With the recent store closure announcements by Sears and Rite Aid, this will be a welcomed addition to the retail center and we are optimistic that we will have several more new tenants to announce in the coming months,” said Grady Brame, Executive Vice President with Stirling Properties.
Hammond Square is Tangipahoa Parish’s premier shopping destination, located on approximately 100 acres at the northwest corner of Interstate 12 and US Highway 51 Business (SW Railroad Avenue) in Hammond, Louisiana. It is the 2nd largest open-air center in Louisiana encompassing 902,000-square-feet of more than 40 national and local retailers, shops and restaurants, including Dillard’s, Target, The Home Depot, JCPenney, Academy Sports+Outdoors and AMC Theatres. Stirling Properties redeveloped Hammond Square and currently manages and leases the center.
“At a time when many retailers are struggling with the challenges of e-commerce and shifts in consumer behavior, Old Navy is bucking trends and experiencing accelerated sales growth across the country. This store will be the perfect addition to our diverse tenant lineup at Hammond Square, and we are confident it will perform well,” said Brame.
For more information on Hammond Square, visit www.hammondsquare.com or facebook.com/hammondsquare. For leasing and sales information, contact Rhonda Sharkawy at (504) 620-8145 or rsharkawy@stirlingprop.com.
HOTWORX is heating up across the country
Early last year, Stirling Properties was selected to exclusively represent HOTWORX, a new-to-market fitness concept, in its aggressive expansion efforts across the U.S.
To date, Stirling Properties is excited to announce that 40 HOTWORX locations have been leased, and 50 more are expected by the end of the year. Our brokers are anticipating more than 100 new locations in the pipeline per year over the next five years!
Joe Gardner, CCIM, and Thomas Bryan, Stirling Properties’ Sales and Leasing Executives, are the exclusive national tenant rep brokers for HOTWORX. Utilizing the Retail Brokers Network (RBN) and the local knowledge of individual brokers across the country, this dynamic duo is working diligently to secure the perfect national retail locations for the new fitness concept—the ideal space required is between 1,500-2,500 square feet.
HOTWORX—founded in New Orleans, LA—is revolutionizing the fitness industry by providing the ultimate hot exercise experience and is the first to launch a 24/7 business franchise model through the use of its proprietary patent-pending technology. It is a virtually instructed exercise program created for users to experience the many benefits of infrared heat absorption, while completing a 30-minute isometric workout or 15-min high-intensity interval training (HIIT) session. As the infrared heat penetrates the body, the isometric postures further accelerate detoxification by physically removing toxins from organs through muscle contraction.
Currently, the company has locations in Alabama, California, Florida, Georgia, Indiana, Louisiana, Mississippi, North Carolina, Oklahoma, Tennessee, and Texas. Future studio sites also include locations in the greater New Orleans area and surrounding Gulf Coast region. For a complete list of HOTWORX stores, click here.
“Our HOTWORX fitness concept is rapidly expanding. We are happy to continue our partnership with Stirling Properties, a proven leader in the real estate industry, to grow our business across the nation. We are still seeking franchisees for various business opportunities and will be announcing new HOTWORX locations soon,” said Stephen Smith, HOTWORX CEO.
“Stirling Properties is proud of our successful partnership with HOTWORX—a company that was founded right here in New Orleans. This unique concept is growing in popularity across the nation and is quickly becoming a leading fitness provider,” said Bryan. “Landlords and property owners are attracted to this type of tenant, not only for its ability to backfill empty retail space but also for its ability to drive traffic to neighboring stores. We look forward to announcing many more locations in communities across the U.S.”
For more information on HOTWORX and franchise opportunities, visit www.hotworx.net.
President’s Message: Chasing the Future
“Alexa, what does the future hold for the commercial real estate industry?”
It would be splendid if it was that easy to get answers to the countless questions that we all undoubtedly have regarding the real estate business. While we don’t (yet) have a crystal ball (or a Watson) to accurately predict the future, one thing is unquestionably certain: disruption is inevitable.
Our industry is on an accelerating disruption curve primarily driven by technology. Data access, artificial intelligence, and automation are quickly reinventing the entire premise on which we do business. And this fast-track is not slowing down any time soon.
In fact, it’s said that the real estate industry is the largest and ripest for disruption via technology and that we are actually lagging behind in innovation. During a recent conference, I heard a presentation from a group of young men heading up venture capital funds specifically focused on technology startup companies that would disrupt some aspect of the real estate world. They noted that more than $7 billion was invested in the last four years alone in such companies—and this is only the beginning.
As real estate is a long-term, capital-intensive, lease encumbered asset, it is critical to attempt to predict the future implications of this disruption. In my opinion, five significant influencers will disrupt the real estate industry.
#1 Data
Big Data drives the world. Everything we do, buy, see, browse for online, and every single place that we go is being captured and collected. This shared data enables machines to learn and predict human behavior, which leads to artificial intelligence, and eventually, to the Internet of Things. From our houses and offices to our bodies to the light poles in the parking lot, everything will be connected to the internet.
Data will literally impact every aspect of how we live, work, play, interact, and thus, affect every facet of real estate. As I said before, these things are reality NOW. We’ve already witnessed incredible technological advancements like geofencing and proximity marketing in retail, facial recognition features, and digital healthcare—all powered by data. It’s mind-blowing, and it will continue. From mobile platforms to smart buildings and virtual technology, access to data is going to change the face of commercial real estate.
#2 Jobs of the Future
Because of technology and automation, it’s estimated that ⅔ of all jobs will be at risk over the next 10-15 years. Entire industries will be eliminated or fundamentally changed, including many in real estate. For example, 38% of the retail workforce is vulnerable to elimination. Cashiers, fast food cooks, truck drivers, medical professionals—you name it—all face the probability of elimination.
Ultimately, real estate is driven by where people live and work. In my day, an employer’s location drove most of the decisions on where the workforce would live. The skilled workforce of the future—mostly made up of millennials—is very different. Skilled workers are now driven by quality of life, cost of living, culture, entertainment, the “coolness factor.” They place more importance on where they want to live and then find employment. We see examples of this in millennial magnet markets across the country. For companies to recruit and retain talent, they must follow the skilled workforce.
This workforce evolution is also impacting work and office environments. Those with open floorplans, collaborative spaces, green features, fitness options, and artisanal food choice are the types of working environments that this demographic is attracted to.
#3 Autonomous Vehicles
Experts predict cars will be basically obsolete by 2030—currently, there is a 95% inefficiency of use. It’s crazy to think that some of my grandchildren will probably never drive their own vehicle (thankfully).
Autonomous vehicles (AV) will be the biggest disruptor of real estate because this has long been an industry designed and built primarily around transportation, access, and parking. When you take those factors out of the equation, you are fundamentally changing the entire industry. The AV’s potential to reshape real estate, development, and city planning will rival that of the introduction of the automobile itself, and will destroy and create massive wealth in real estate assets.
Right now, there are 500 million parking spaces in the U.S. and 260 million vehicles. That’s almost a 2:1 ratio. (Houston is the winner at 30:1 ratio.) It’s projected that AV could reduce the need for parking space by more than 61 billion square feet.
“Alexa, what can I do with my empty parking lot?”
#4 Retail Renaissance
I would be remiss if I didn’t mention retail and the myth that brick and mortar is dying. It’s not dying; instead, it’s more like a renaissance. Yes, many stores have died and some will still die because they could not adapt to the disruption of e-commerce and shifting consumer demands.
However, many stores are thriving and seeing increased sales numbers. They are using e-commerce to their advantage and learning to adapt to online tools and technological platforms. Today’s consumers are digitally empowered, relentlessly distracted, and time constrained. Also, successful retailers are determining that the future of shopping is not just about shopping. It’s about dining, entertainment, experiences, leisure—with shopping as an adjunct. New retail uses are evolving every day. Those retailers that adapt to this changing landscape will come out on top.
I’ve heard a quote along the lines of, “Retail will change more in the next five years than it has in the past 50.” The retail renaissance is just beginning.
#5 Industrial is the new darling
Industrial real estate is one of the hottest real estate assets for two principal reasons. First, in retail, the last-mile phenomenon is driving an increased demand for industrial space to manufacture, sort, store and distribute goods in the race to get products to consumers in the fastest and most efficient manner possible. Statistics show that 90% of the U.S. is now within range for next-day delivery. Logistics and supply chain decisions are now a dominating factor influencing store locations, distribution facilities, and even mergers and acquisitions.
E-commerce is growing at over 16% per year. It’s projected that every $1 billion in e-commerce sales creates demand for another 1.25 million square feet of warehouse space in the U.S. You do the math—industrial real estate will continue to be a major influencer in our industry.
Another important factor driving industrial demand is the concept of “local is the new global.” Consumers are choosing local products and services over big-box models. We see the conversion of old, industrial spaces into innovative food halls, microbreweries, and cool office co-working spaces. In many cases, these conversions are transforming entire neighborhoods and communities. It’s exciting to see this asset evolution.
So there you have it—the top five influencers that I believe will have the most impact on the commercial real estate industry. While I do wish I could ask Alexa precisely what’s in store for us, we can be sure it involves more disruption.
One of my favorite quotes is, “You either see the future coming, or you chase it after it comes.” The moral of the story is that it’s critical we are thinking about the impacts of all of this and how it’s going to affect our business moving forward. Disruption should not be considered a threat, but rather an opportunity. I would be happy to hear your thoughts and open dialogue on these topics. Feel free to reply with your comments.
Now, “Alexa, where can I get a robot?”
Stirling Properties Announces True Food Kitchen as Tenant of The Julia at Saint Charles in New Orleans
Health-driven restaurant brand to anchor new mixed-used development in Warehouse District
The Julia at Saint Charles rendering
Stirling Properties commercial real estate company is pleased to announce that True Food Kitchen will be the anchor tenant in The Julia at Saint Charles, an upcoming mixed-use development in New Orleans’ Warehouse District. This marks the first Louisiana location for the Arizona-based restaurant brand.
True Food Kitchen is a health-driven, seasonal restaurant merging nutrient-rich ingredients with a flavor-forward menu that rotates regularly to let guests experience great tasting food and thoughtfully crafted beverages—shared in an environment of infectious positivity. Founded by a passionate collective of accomplished chefs, visionary restauranteurs and a renowned doctor of integrated medicine, the restaurant brand is rooted in a belief that delicious dining and conscious nutrition can go hand-in-hand, without sacrificing flavor, creativity or indulgence. Its menu caters to nearly every food preference with a variant of gluten-free, naturally organic, vegetarian and vegan offerings.
Founded in 2008, True Food Kitchen currently has 23 locations in 10 states including California, Texas, Arizona, Georgia, Florida, Colorado, Illinois, Maryland, Virginia and Pennsylvania. The restaurant brand plans to double the number of restaurants it operates over the next three years. True Food Kitchen in New Orleans will occupy over 6,000 square feet of space in addition to a 2,000 square foot outdoor patio located on the corner of Julia Street and St. Charles Avenue. It is expected to open in the summer of 2019.
The Julia at Saint Charles rendering
The Julia at Saint Charles will feature over 16,000 square feet of ground floor commercial space including an exciting mix of local, national, and international retail tenants. In addition to the commercial area, the project comprises almost 200 luxury apartments and enclosed parking facility, which will be available to both the residents and public. Construction is underway, and suite delivery is slated for the 4th Quarter of 2018. The development is set to open in the 2nd Quarter of 2019.
Joe Gardner, CCIM and Carly Plotkin, Sales & Leasing Executives with Stirling Properties, are the listing agents for the retail portion of the property, along with Stuart Zall and Gerardo Aguinis with The Zall Company. John Middleton of MJK Advisors represented True Food Kitchen in the lease transaction. The project is being developed by Audubon Capital Partners of Boston, MA, and Woodward Design + Build.
“We are thrilled to welcome True Food Kitchen as the anchor tenant to The Julia. This is an exciting new-to-market concept—not only for New Orleans but the entire Gulf South region,” said Plotkin. “True Food Kitchen’s innovative food experience will fit perfectly in New Orleans’ vibrant culinary scene, and further solidify our area as an attractive retail destination. We look forward to announcing more great tenants to the development very soon.”
For commercial leasing information, contact Joe Gardner, CCIM at jgardner@stirlingprop.com / (504) 620-8140 or Carly Plotkin at cplotkin@stirlingprop.com / (504) 620-8120.
Stirling Properties to Serve as Exclusive Tenant Rep for Planet Fitness in Greater New Orleans Area
Stirling Properties has recently been awarded the exclusive commercial tenant representation for United PF Partners, a Planet Fitness Franchisee Group, in the greater New Orleans area.
Planet Fitness has become one of the largest and fastest-growing franchisors and operators of fitness centers in the U.S. by number of members and locations. With more than 1,600 locations in 50 states, Canada and Latin America, Planet Fitness has continued to spread its unique mission of enhancing people’s lives by providing an affordable, high-quality fitness experience in a welcoming, non-intimidating environment.
United PF is the largest Planet Fitness Franchisee Group in the nation and growing at a pace of over 20 new clubs per year. There are currently seven Planet Fitness locations in the greater New Orleans area, including Covington, Gretna, Kenner, Metairie, New Orleans (Crowder Blvd.), River Ridge, and Slidell. Moving forward, United PF’s expansion goal is to ensure total market penetration, allowing convenient and affordable fitness access for all consumers in the market.
Ryan Pécot and Carly Plotkin, Stirling Properties’ Sales and Leasing Executives, are the exclusive tenant representatives for United PF and are working to secure new retail locations for the fitness franchise.
“We are thrilled about our latest partnership with Stirling Properties. With their additional expertise, we look forward to inviting new community members into our clubs and increasing convenience for our members in the Greater New Orleans region,” said Seth Parker, VP of Club Development for United PF.
“Planet Fitness is one of the leading fitness center franchises in the country, and they are planning an aggressive expansion targeting Southeast Louisiana,” said Pécot. “Stirling Properties is excited to have the opportunity to partner with Planet Fitness to help them identify and select the optimal locations to exceed their real estate goals. We look forward to announcing new locations to serve the greater New Orleans area very soon.”
For leasing information, contact Ryan Pécot at rpecot@stirlingprop.com | (337) 572-0246 or Carly Plotkin at cplotkin@stirlingprop.com | (504) 620-8120.
Stirling Properties helping to build Next Generation of commercial real estate professionals
In partnership with ICSC (International Council of Shopping Centers) Foundation, Stirling Properties’ team members have been actively involved in leading efforts to help create and maintain a pipeline of strong and diverse talent for the future of the commercial real estate industry. Two main areas of focus are centered on professional and academic development.
Next Generation is ICSC’s educational, networking, and mentoring program specifically designed for emerging retail real estate professionals who are seeking to develop and advance their careers and build relationships in the commercial real estate industry.
Carly Plotkin and Townsend Underhill
Townsend Underhill, Stirling Properties’ President of Development, is serving as the Southern Division Chairman for Next Generation—he is also Past Louisiana State Director for ICSC. Recently, his volunteer committee hosted the very first fundraising event for the Next Generation Fund of the ICSC Foundation during the ICSC Next Generation Conference in Toronto. More than $7,000 was raised to help support a professional education scholarship fund designed for up-and-coming professionals who are interested in progressing their skills in retail real estate.
Carly Plotkin, Sales & Leasing Executive with Stirling Properties, was awarded one of the first two scholarships from the Next Generation fund! Plotkin is also currently serving as the ICSC Next Generation State Chair for Louisiana and on the national Board for ICSC Next Generation.
“Stirling Properties is extremely proud of our work on this front. We are equally proud that one of our very own agents was awarded a professional development scholarship. No one is more deserving of this honor than Carly,” said Underhill. “Assisting new professionals in our industry to succeed—and even excel—in their careers is crucial for the future of our business. So we must be proactive in ensuring that we are not only attracting and retaining the brightest talent base available, but also equipping them with the tools they need to be prosperous.”
ICSC also supports numerous student academic programs, such as annual student membership opportunities, conference attendance, scholarships and experiential opportunities, as well as mentoring and job assistance.
Stirling Properties’ Vice President of Finance, Justin Landry, serves on the ICSC Foundation Talent & Education Committee, which focuses on identifying, attracting, and developing young people with interest in the retail real estate industry. The committee’s primary goal is to increase student engagement in ICSC, and focus on job placement within the industry.
Landry was selected to serve on the ICSC committee due to his background working with college-level students at LSU (Louisiana State University). He works as an instructor for the university teaching Finance 7720 (Commercial Real Estate Investing).
Jimmy Maurin, Justin Landry and ICSC Maurin-Ogden Foundation LSU Scholarship Award Recipients
Over the past few years, Landry has been instrumental in introducing LSU students to academic scholarships and career placement opportunities, such as the ICSC Maurin-Ogden Foundation LSU Scholarship Award, funded by Jimmy Maurin and Roger Ogden, founders of Stirling Properties. Through the scholarship, students receive all-expense-paid attendance to ICSC RECon in Las Vegas, the world’s largest retail real estate convention. Each year, Stirling Properties hosts LSU Award Recipients at the conference, offering the students valuable exposure to industry leaders and potential employers.
Now, working with the ICSC Foundation Talent & Education Committee, future academic engagement strategies include developing and increasing student-focused events at major ICSC conferences; building relationships with universities and establishing/enhancing Real Estate Clubs; identifying and expanding educational opportunities such as internships and case competitions; and career placement programs such as career fairs and targeted recruitment sessions.
“This is an extraordinary opportunity for us to invest in the future of our industry, while also supporting local communities,” said Landry. “ICSC has been on the front lines leading this charge, and Stirling Properties is proud to be able to partner with them to advance their efforts. Collectively, we are developing strategies that will lead to job creation for students, economic growth for local communities, and talent retention within our industry. These are the next generation of executives and brokers that are going to lead our companies—it’s critical that we make them a priority.”
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