Retail Real Estate Momentum Builds: Lending Hits High, Mall Redevelopment Breaks Ground, Retailers Grow U.S. Stores and More

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Lending, Redevelopment, Leasing and Record Single-Tenant Sale Signal Retail Real Estate Momentum
From Aritzia’s U.S. Push to Bob’s Discount Furniture Hybrid Format, 7 Retailers Refine Their Footprints
Executive Moves at Centennial, Benenson Capital Partners, TSCG and Brand Properties

As the Marketplaces Industry gears up for ICSC LAS VEGAS, four recent happenings signal renewed strength in the retail real estate market. The CBRE Lending Momentum Index surged to 1.5 in the first quarter — up from just 0.3 a year earlier — marking the highest lending activity since 2021. Shopoff Realty Investments broke ground on Bolsa Pacific, an 83-acre mixed-use redevelopment of a former mall in Orange County, California. Leasing is underway for Village Landing, a 400,000-plus-square-foot mixed-use development in Wellington, Florida, spearheaded by Related Ross. And a prototype 7-Eleven in Madera, California, sold for a state record for 7-Eleven stores, underscoring strong demand for single-tenant net lease properties.

Commercial Real Estate Lending Activity Hits Highest Level Since 2021, CBRE Index Shows

Upbeat news for retail real estate investors and developers: In the first quarter of this year, commercial real estate lending activity climbed to its highest level since 2021, according to the CBRE Lending Momentum Index. CBRE attributed the index increase to higher average loan sizes, more non-agency loans, relatively stable spreads and improved loan-to-value ratios. The index tracks the pace of CBRE-originated commercial loan closings in the U.S. over a 36-month period and is based on a Z-score standardization. Higher readings signal greater lending momentum and improved sentiment. The index rose to 1.5 at the end of the first quarter of 2026, up from 1.2 in the fourth quarter of last year and 0.3 a year earlier.

Shopoff Advances 83-Acre Orange County Mall Redevelopment

Shopoff Realty Investments recently broke ground to transform the former Westminster Mall in Orange County, California, into a Target-anchored mixed-use hub with 210,000 square feet of retail. The 83-acre Bolsa Pacific also will feature 2,250 for-rent apartments and for-sale homes, a 15,000-square-foot food hall, a 120-room hotel and 15 acres of open space. Shopoff acquired the Westminster site in a series of transactions dating back to 2022 and is demolishing the mall. Construction is expected to start in the fourth quarter.

FROM THE C+CT ARCHIVE: It’s Not Easy Transforming Empty Retail into New Housing, but Shopoff Finds It Worth It

Palm Beach County Mixed-Use Development Begins Retail Leasing

Leasing is underway for a 71-acre mixed-use project in Wellington, a village in Florida’s Palm Beach County, the South Florida Business Journal reported. Related Ross, led by Miami Dolphins owner and Related founder Stephen Ross, is developing Village Landing, which has been approved for 220,000 square feet of retail, more than 100,000 square feet of restaurant space, 90,000 square feet of office, a 180-room hotel and 15 condos. The development could accommodate more than 80 stores and restaurants, according to the South Florida Business Journal. Construction is expected to start this fall.

California 7-Eleven Sale Underscores Single-Tenant Investor Demand

In another sign of a healthy market, a single-tenant property sale broke a California record. A private investor from the San Francisco Bay Area bought a brand-new-prototype 7-Eleven convenience store in the Fresno suburb of Madera from Stock Five Development for $12.9 million. The 1031 exchange deal represents the highest-priced single-tenant 7-Eleven ever sold in California, according to Hanley Investment Group Real Estate Advisors, which represented Stock Five. 7-Eleven occupies the 4-acre property through a 15‑year triple-net lease. It features a 4,644-square-foot convenience store, gas pumps, electric vehicle charging stations and commercial diesel fueling lanes.

From Aritzia’s U.S. Push to Bob’s Discount Furniture Hybrid Format, 7 Retailers Refine Their Footprints

Aritzia is plotting a major U.S. store expansion; Target and Best Buy are broadening their brick-and-mortar footprints; Wawa is launching a 50-store push into Tennessee; and Dutch Bros Coffee is acquiring 29 Phoenix-area shops as it targets significant store growth by 2029. Meanwhile, Bob’s Discount Furniture debuted an innovative retail-distribution hybrid concept in Ohio and Loblaw Cos. is accelerating its hard-discount grocery presence in Canada.

Aritzia Sees More Runway for U.S. Store Growth

Canada-based Aritzia, which sells women’s luxury clothing and accessories, is bulking up its store count via the U.S. During a recent earnings call, CEO Jennifer Wong said Aritizia aims to operate 180 to 200 stores in the U.S. eventually, up from the current 76. “We have a ton of runway in the U.S. still to go,” Wong said. In fiscal year 2026, which ended on March 31, the retailer opened 14 stores, including one in Manhattan’s Flatiron District. In fiscal year 2027, Aritzia plans to add 12 to 13 stores, mostly in the U.S., including in four new markets: Birmingham, Alabama; Fort Worth, Texas; New Orleans; and St. Louis. “Our proven real estate expansion strategy continues to be our most consistent predictable driver of growth,” Wong said. Aritzia ended fiscal year 2026 with 144 stores in North America.

Target Plans 30 New Stores and Best Buy Returns to Net Domestic Growth

Two of the largest retailers in the U.S., Target and Best Buy, are making news on the store-opening front.

In addition to the more than 130 store remodels Target is tackling this year, the 30 stores it’s opening in 2026 will be in 13 priority markets: Atlanta; Austin, Dallas and Houston, Texas; Charlotte, North Carolina; Chicago; Phoenix; Los Angeles; Miami; Minneapolis; New York City; Philadelphia; and Washington, D.C. Altogether, Target is spending about $5 billion on the new stores and remodels.

As Best Buy spruces up stores, the electronics retailer also is adding new locations. In its Fiscal 2026 Annual Report, Best Buy said it is opening six stores in fiscal year 2027 “to better meet demand in growing markets” and will achieve net domestic store growth for the first time in more than a decade. The expansion initiative includes a small-format model that “has driven incremental revenue in smaller markets — both through store visits and in local online orders,” the report said. In fiscal year 2026, which ended on Jan. 31, Best Buy operated more than 1,000 stores in North America.

Wawa Kicks Off $375M, 50-Store Entry into Tennessee

The Wawa convenience store chain will launch a Volunteer State expansion next month with the opening of a store in Clarksville, Tennessee, on June 18, Convenience Store News reported. Five more Wawa stores will open in the state this year, and the c-store operator plans to build as many as 50 stores in Tennessee over a 10-year span. At an estimated construction cost of $7.5 million per location, Wawa’s Tennessee buildout would cost $375 million. The chain operates 1,100 stores in 12 states and the District of Columbia.

Bob’s Discount Furniture Tests Hybrid Store-Distribution Model

In a first-of-its-kind project for the chain, a new Bob’s Discount Furniture location in the Cleveland suburb of Glenwillow is doing double duty as a retail store and distribution hub. “By pairing a retail store with a distribution center, we’re keeping inventory closer to our customers, allowing us to reduce line-haul costs and enable easier fulfillment across ordering channels,” executive vice president and COO Ramesh Murthy told Supply Chain Dive. The more than 25,000-square-foot retail operation sits inside the nearly 500,000-square-foot distribution center, according to Supply Chain Dive and the Cleveland Business Journal.

Murthy said Bob’s will monitor the retail-distribution combo to gauge whether to add more hybrid locations. As of March 29, Bob’s operated 214 stores. It plans to open 20 in fiscal year 2026 as it pushes toward a count of more than 500 by 2035. Proceeds from the retailer’s recent $331 million initial public offering will fuel the company’s aggressive growth plan, according to Hartford Business.

Loblaw Cos. Plans More Discount Stores as Consumers Seek Value

Following the playbook of discount grocers Aldi and Lidl, Canadian grocery giant Loblaw Cos. is banking on deal-hunting shoppers. During a recent earnings call, CFO Richard Dufresne said: “As consumers continue to focus on value, our hard-discount banners remain a key driver of absolute growth.” Dufresne said Loblaw opened five discount stores in the first quarter, which ended on March 28, and plans to open about 25 more this year. Loblaw Cos.’ No Frills and Maxi discount formats average double-digit same-store sales growth, he said. Loblaw Cos. operates 341 No Frills and 209 Maxi stores in Canada, a spokesperson said.

Dutch Bros Will Acquire 29 of Its Phoenix Locations as it Targets 2,029 Stores

Arizona-based Dutch Bros Coffee has agreed to acquire 29 Phoenix-area drive-thru coffee shops from a franchisee as it rapidly widens its footprint. Dutch Bros expects to close the deal in the third quarter. As of March 31, its U.S. portfolio comprised 1,177 locations in 25 states. The chain plans to grow its footprint to 2,029 stores by 2029. This year alone, Dutch Bros is opening at least 185 new stores.

Executive Moves at Centennial, Benenson Capital Partners, TSCG and Brand Properties

Leadership changes are afoot across the Marketplaces Industry.

Centennial Names Paul Kurzawa CEO as Founder Steven Levin Retires

Paul Kurzawa will take over as CEO of Centennial on June 30, succeeding founder Steven Levin, who is retiring. Levin, who has been CEO of Centennial since starting the real estate firm in 1997, will remain aboard in a 12-month advisory role. Under Levin’s leadership, the real estate owner and developer has built a portfolio of more than 25 million square feet of retail and mixed-use across 18 states. Kurzawa joined Centennial in 2024, the same year it was acquired by Lincoln Property Co. He previously was COO at retail developer CenterCal Properties and executive vice president of operations at URW.

“Growing Centennial into a respected leader in retail real estate has been a joy and a privilege over the past 30 years, and I have tremendous confidence in Paul Kurzawa and our executive team as they lead the organization forward into the next chapter,” Levin said. “This is not farewell by any means. I remain deeply passionate about this industry and excited for what lies ahead.”

Longtime Benenson Executive Richard Kessler Takes CEO Role

Real estate investment, development and asset management firm Benenson Capital Partners promoted Richard Kessler to the newly created role of CEO. He joined Benenson in 1978 and had been COO since 1998. The firm’s portfolio contains more than 130 retail, mixed-use, multifamily, industrial, office and hospitality properties in the U.S. and Canada.

Nichole Popovics Succeeds Sam Latone as President of TSCG

TSCG has promoted Nichole Popovics to president, succeeding Sam Latone, who has transitioned to co-chair and will continue as co-CEO. David Birnbrey remains as co-chair and co-CEO. Popovics will be the face and voice of the company, concentrating on generating new business, recruiting talent and raising TSCG’s national profile. She joined TSCG in 2021 as executive vice president and managing director of national tenant advisory services. Popovics co-chaired last year’s ICSC+OAC in Tampa, Florida.

Brand Properties Names Lynn Lewis and Shannon Lasswell to Newly Created C-Suite Roles

Two industry veterans have filled newly created C-suite positions at Brand Properties. Lynn Lewis has joined the company as COO. She most recently operated boutique real estate advisory firm Lunar Real Estate Group and earlier held high-level posts at Cushman & Wakefield and Hines. Also, Brand promoted Shannon Lasswell to chief strategy officer. She joined the company last year as director of operations and previously managed finances at three real estate companies. Earlier, Laswell spent nearly 17 years in various vice president roles at JLL. Brand manages nearly 5 million square feet of retail centers, office buildings, flex properties and land.