Global institutional investors are losing their appetite for U.S. office and retail properties, according to an August 2021 survey of the roughly 200 members of AFIRE, the association for international real estate investors. Eighty-one percent say appetite for office has decreased over the past two years, and 84% say so about retail. Sixty percent ranked a possible U.S. recession as the most significant factor affecting U.S. investments over the next decade, followed closely by 53% citing global recession. Seventy-nine percent reported concerns related to cybersecurity, more than the percentage who cited taxes and inflation. And they say diverse talent and leadership will be critical for the future. More than 80% agree the U.S. real estate workforce will need to become more diverse in order to manage future risk.

13 development dispatches from around the U.S.

Phoenix: Vestar plans three retail centers here totaling more than 650,000 square feet at a combined development cost of nearly $90 million. “For the past several years, we strategically held off on developing new projects and put our resources into revitalizing our existing portfolio and responding to current retail trends,” said president and COO David Larcher. “We are confident that this is the right time and [these] are the right markets for us to return to our roots as ground-up developers.” Costco will anchor the 31-acre, 300,000-square-foot Queen Creek Crossing, which will break ground in June 2022 and open in March 2023. Construction for the 75,000-square-foot first phase of Vineyard Towne Center, also in Queen Creek, will begin in the first quarter of 2022 and deliver at the end of the year. And the 90,000-square-foot Shops at Lake Pleasant in Peoria, Arizona, will open in late 2022.

Jacksonville, Florida: Gatlin Development Co. will start construction in December on Grand Cypress, which will include a 41,500-square-foot Winn-Dixie; a separate, 2,000-square-foot Winn-Dixie liquor store; and six outparcels, including a dentist and a drive-thru Zaxby’s restaurant.

Atlanta: GID will break ground this year on Phase 1 of the $2 billion, 36-acre High Street, which will feature 150,000 square feet of retail and restaurants, 600 luxury multifamily units and 90,000 square feet of office. JLL Capital Markets helped arrange a construction loan through Bank OZK.

Noblesville, Indiana: Milhaus plans to spend $118 million to build 144 apartments, 102 townhouses, 28,000 square feet of retail, greenway space and walking trails. The site sits near the city’s planned “innovation mile” of more than 200 acres of commercial space for local growing businesses.

Annapolis, Maryland: Trademark started the repositioning of the 2 million-square-foot Annapolis Town Center. The center has 557,000 square feet of retail, 45,000 square feet of Class A office and 550 luxury multifamily units, and renovations and upgrades will include a new gathering area with a pavilion for programming, pictured at top. Rebranded signage, including parking garage wayfinding, will be implemented throughout the property, while murals from local artists also will be installed.

North Stafford, Virginia: The Pence Group broke ground on The Garrison, which will bring upscale shops, apartments and a movie theater. Phase 1, set to open in 2023, includes 110,000 feet of retail and 136 apartments. When fully developed, The Garrison will include 500,000 square feet of retail and 453 apartments.

Pittsboro, North Carolina: Avra Development plans to develop four outparcels and an 80,000-square-foot neighborhood center tenanted by a grocery store, a bank, a health care center, a pharmacy, restaurants and other retailers. It will sit across from a master-planned residential community outside Raleigh called Fearrington.

Alliance, Ohio: Fairmount Properties says supermarket chain Meijer will anchor the planned redevelopment of Carnation City Mall, which would turn the 1980s-era enclosed mall into an open-air power center.

Antioch, Tennessee: After pushing back construction due to COVID, Tanger Outlets plans to break ground in the first quarter on a 303,500-square-foot shopping center, part of developer Oldacre McDonald’s larger Century Farms development outside Nashville.

Dripping Springs, Texas: Two mixed-use developments are planned for this suburb of San Antonio. The 112-acre, 531-unit residential subdivision Village Grove will feature retail, restaurants, trails, parks and playgrounds. New Growth, a 36-acre complex of 288 rental townhouse units and a commercial center, would sit two miles away.