Retail Rates and Development Around New Hampshire

Retail Rates and Development Around New Hampshire



As we turn the corner around Labor Day and look forward to the cold New England Winter, our team has reflected upon what we are seeing in our market and what can retail tenants and landlords do to prepare for what is next.
From 2008 through this year has been dominated by a few retail brand names. Family Dollar, Dollar Tree and Dollar General appear to be in a battle for locations. Outside of these discount names, there has been a massive expansion of Market Baskets since the Great Recession. Outside of these brand names have been a grouping of smaller local or regional players that have been able to take advantage of the landlord concessions by taking class A space for lower rates. Many of these tenancies are going to be rolling in the next 24-36 months and they could be faced with escalators or be looking to expand. Tenants may need to get used to a new pricing model as they search for new space, as rents have risen since their lows four years ago.

Forecasting forward consumer confidence appears to be back. Says Lynn Franco, Director of Economic Indicators at The Conference Board: “The Consumer Confidence Index rebounded in September and is back to levels seen earlier this year (71.6 in February 2012). Consumers were more positive in their assessment of current conditions, in particular the job market, and considerably more optimistic about the short-term outlook for business conditions, employment and their financial situation” (The Conference Board). Service businesses such as Get In Shape for Women, Massage Franchises as well as food establishments are bank looking to take some wallet share from the new found consumer. New bank branches for Service Credit Union and Northeast Credit Union are opening as well. Service Credit Union has moved their headquarters to the seacoast in a brand new 100,000+/- SF building. We can expect to see a rise in branch locations over the next few years.

In the central part of the state the Bedford Mall is almost complete with its makeover. The strip mall received a facelift and brought in new businesses like Fresh Market, Kohl’s, Starbucks and Chipotle. In Epping Waterstone Retail Development's Brickyard Square is in phase two and it’s brought in large retailers like Marshalls, Petsmart, Rue 21, Dress Barn, Michaels, Great Clips, and Famous Footwear.

The forecast for the future in retail appears to be bright. Service related businesses are up, as are food, both prepared and grocer. While rents have not rebounded to their past highs, tenants and landlord’s both may be surprised at what competing sites have to offer as owners with lower basis are still willing to help create attractive rental rates.

New Hampshire keeps the businesses coming and the jobs that are created with these new or expanding businesses are excellent for the economy. The signs of recovery are evident.