CT retail market active on all fronts

Real Estate Weekly, Oct 4, 1995 by Jeffrey R. Dunne

Furthermore, a partial explanation for the proliferation of supermarket chains, pharmacies, soft- and hard-goods stores and large discounters and wholesale clubs is the change in ownership and financing that has established a new trend. We've seen a marked increase in the number of investments that are owned by REITs and by the retailers themselves. In general, the ownership of retail centers has changed significantly in the last few years.

Major shopping malls such as Taubman's Stamford Town Center and West Farms Mall in West Hartford, and many of the former Rosenshein properties, along with two large 1994/95 sales: Danbury Square (126,000 square feet) and Meriden Square (292,000 square feet) are all owned by REITs. Nearly all the new food chains, Wal-Marts and Kmarts in Connecticut are owned by the retailer or are a venture between the retailer and the developer, which is a further move toward greater institutional ownership of commercial real estate.

Fairfield County

With typically more restrictive zoning for retail development and less retail zoned land available (compared with New Haven, Hartford and New London counties) Fairfield County nevertheless has experienced explosive construction in the retail sector, particularly when compared to office or industrial construction. Stamford, especially, anticipates an extensive renovation and expansion of the Ridgeway Shopping Center, with Stop & Shop as the major anchor. Future developments include a new retail development in Commerce Industrial Park at Exit 6, and a multi-level center with power center type tenants at the "hole in the ground" at Tresser Boulevard and Greyrock Place in downtown Stamford.

In Norwalk, developments under construction or about to start construction include Home Depot and Staples on Connecticut Avenue; and a Stop & Shop/Bobs on the former Pitney Bowes site where Main Avenue intersects the Merritt Parkway at Exit 40.

In Fairfield, just off Exit 22 on the Post Road, a center with MarshalIs, Office MAX and CVS is under construction, while at an adjacent site, Stop & Shop is seeking approvals for a significant expansion. Across the street, Grand Union has vacated (probably in anticipation of Stop & Shop's expansion).

In Bridgeport, Home Depot recently opened a store just off Boston Avenue opposite Beardsley Park. Fairfield County's only Wal-Mart is under construction on an adjacent site on Bridgeport Avenue in Shelton; Kmart recently opened in New Milford.

Hartford County

New retail development has been spurred by the increasingly competitive grocery industry. Super Stop & Shop is challenged by newcomer Shaw's, Big Y, and Edwards. Currently Shaw's has stores nearing completion in Manchester, Newington, Bristol, Vernon and New Britain, with more sites targeted. Big Y continues to establish its base in Connecticut with stores underway in Norwich and Naugatuck, which follow openings earlier this year of their Plainville, Monroe, and Killingly stores.

Edwards is upgrading existing stores and has added new locations in Windsor and Glastonbury. Waldbaum's persists in fortifying its market share by closing stores in weaker markets and renovating and expanding their stronger outlets.

Non-grocery anchored retail developments are also gaining presence. In Enfield, a new Home Depot has stimulated redevelopment of State Line Plaza. And in East Windsor, the new Showcase Cinema soon will be joined by a Wal-Mart on Route 5. Kmart is constructing a 120,000 square-foot store in Windsor to replace its older, smaller store. Joining Edwards at the new location, Kmart will anchor a retail center with an additional 60,000 square feet of space.

For the past few years, the retail market east of Hartford has garnered much attention because of the explosive growth of retail in the Manchester area. Since 1990, approximately two million square feet of retail space has been built in this sector. Many of the projects are one to three years old, and are successful. During 1995, a new Circuit City joined the Bobs/Marshalls Shopping Center, while Home Place, which opened earlier in the year, has been joined by Pet Supply Plus and Noodle Kidoodle.

Another major center is scheduled for the intersection of Slater and Hale in Manchester. Free-standing restaurants and medium-size box retailers here as elsewhere compete for the dwindling sites appropriately zoned for retail development.

Expansion and renovation are the trends at several established malls and retail strips. In West Hartford/Farmington, the successful West Farms Mall is experiencing a resurgence of activity as it expands to accommodate Nordstrom's Department Store, scheduled for completion in 1997. The West Farms Shopping Center, adjacent to the mall, is fully renovated and has added Linens N Things and Pet Supply Depot. In addition, a free-standing Office Max has been built on the property next door.

Also in West Hartford, the New Park Road area is re-emerging as a retail market as demolition of the former Colt site makes way for a new Home Depot, BJ's Wholesale Club and Auto Palace. They will join a Super Stop & Shop which opened last year on the former Royal Typewriter factory property, just north of the site.