CBL & Associates Properties, Inc. (CBL) disclosed the development of Parkway Plaza in Fort Oglethorpe, Ga. The construction of this community center, which will span 134,100-square-foot, will commence in June this year and is slated to open in spring 2015.
Located in the highly trafficked retail corridor, Parkway Plaza offers significant prospects for growth for this retail real estate investment trust (:REIT). It is already 90% leased prior to its construction commencement.
It has committed retailers such as Hobby Lobby, Petco, Rack Room Shoes, Marshalls, Inc. – a chain of American department stores owned by The TJX Companies Inc. (TJX) and Ross Dress for Less – a brand of Ross Stores Inc. (ROST). With the advancement of the development, the project is expected to further grab the attention of other renowned retailers.
Growing consumer confidence drives the demand for retail goods. Consequently, this is an opportune moment for companies providing real estate support to the retail sector. Amid lower supply of new properties, steadily rising demand is shaping up as the sector’s growth driver for years to come.
Headquartered in Chattanooga, Tenn., CBL & Associates is one of the leading owners and developers of malls and shopping centers in the United States. It currently owns, holds stakes in or manages 150 properties, including 91 regional malls/open-air centers, which are positioned in 29 states. These properties span 86.1 million square feet in total and include 5.6 million square feet of non-owned shopping centers managed for third parties.
CBL & Associates currently carries a Zacks Rank #3 (Hold). Investors interested in the retail REIT industry can also consider Simon Property Group Inc. (SPG), which carries a Zacks Rank #2 (Buy).