NBBJ Real Estate Awards

I see it's time to send in nominations for the Business Journal's "fifth annual 2010 Top Projects Awards" (fifth... 2010...?).

There aren't a lot of Marin contenders (it's been a quiet year). A leading contender in the mixed use category will be the Tamalpais Commons project in Mill Valley (picture below). This higher-density development is the first of several planned for Miller Avenue and is still controversial with many locals who fear increased levels of traffic. I'm not sure whether the residential component is a success, but the retail is a great addition to this part of Miller, adding three new businesses: Dish restaurant, Yolo fro-yo and ToyHouse.

Another Marin mixed-use development that might receive an award is the Millworks project, which houses the new Whole Foods in downtown Novato. The City has been criticized for allowing such a large project. And in terms of design it's just OK. On balance I think it's a worthwhile project, bringing business, jobs and residents to the downtown area.

Northgate Mall probably doesn't qualify, as it opened last year. They did a great job of getting most of the space leased in the midst of the great recession, but I'm not a fan of the design: the inside of the place looks too much like a warehouse. And there are too many small design fails, such as putting the H&M entry right behind this structural column.

Meanwhile, over the street at Northgate One, the new Walgreen is my official entry for "Ugly Building Turning Its Back On The Street" category.

Buy your tickets for the gala awards ceremony now, folks.

Northgate Mall - Victoria's Secret coming soon

Since the renovated Northgate Mall opened at the end of 2009, they've been steadily adding new retailers. I got my first look at the new Forever 21 store at Northgate Mall last weekend.

There's no missing the remodeled mall's identity - it's all about mid market fashion. There's the three department stores for the older generations, and for teens and young adults there's a host of specialty chain stores. In fact, I've never seen such a concentration of almost identical stores next to each other. I'm sure the kids will tell me that Tilly's is nothing like PacSun is nothing like Hot Topic, Forever 21, Buckle, H&M etc... but for me it's all a little repetitive.

Victoria's Secret, which will occupy a large unit at the center of the mall, will certainly add a little complementary variety to the mix

Target gets a grocery store

I finally got a chance to visit the new grocery store that opened quietly earlier this year - the one inside of Target at Vintage Oaks. I expected to find an expansion of their existing packaged food section with some added fresh food and baked goods. But they have totally moved the food section to one side of the store so it more resembles a market. The expansion is part of a nationwide roll out as Target continues to battle Wal-Mart for market share.

The grocery section was larger than I supposed, with some 10,000 - 12,000 square feet dedicated to food, and set out along 10 short aisles at the far end of the store. The design was as expected, with clean, simple signs, bright displays and well-stocked shelves .

The product mix was also simple, based around packaged goods and mass-market brands. Target's own brands were also on display: Market Pantry is their discount brand, while Archer Farms is the premium alternative. The fresh food section (photo above) was quite small. As you would expect from Target, the emphasis is on price and convenience. There was a lot of processed food on display, though I didn't spot the wall of shredded cheese.

I can't see many people using this as their main grocery store. Traffic was light, with 10-12 people shopping the grocery section. Target is clearly relying on the convenience of picking up some cheap groceries while shopping for other household goods or clothing to make this a productive use of space.

Retail sales still tracking above 2009

Despite the slowdown in the economic recovery and amid warnings of a double-dip recession, 2010 retail sales in Marin have so far kept ahead of 2009 levels for the comparable month. For the year to August, the 1% sales tax distributed to Marin cities was $18.2m, up 3.3% over the same period for 2009.

Next month's figures will be interesting because the September 2009 figures were inflated by cash for clunkers spending from August 2009, as shown by the green line on the chart above, which rose to 2008 levels for that one month before sliding back in October.

Car makers are already reporting their August sales comps look terrible. So it will be no surprise if the Sept. 2010 retail sales number comes in 10%-20% below 2009.

Marin Country Mart exposed

Work continues on the transformation of Larkspur Landing Shopping Center to Marin Country Mart, with the most radical action so far being the chopping down of trees along Sir Francis Drake Blvd, exposing the naked and still rather empty shopping center to the eyes of passing motorists.

The large trees that were removed are to be replaced by smaller Olive trees, two of which have already been positioned in the center of the mall, which is currently closed off while the landscaping is underway.

The center has also now got a new online presence, which is at the moment just a placeholder while we wait for some retailers to arrive. There's also a pretty brochure, which gives a few visual clues to the desired positioning of the center - think Janis Joplin, kids with balloons, Dirty Harry, some cheese and a barber's pole. If that doesn't provide clarity, try the brochure blurb:

Exceptional boutique shopping, neighborhood services & fine foods. A community gathering place with a children’s play area, grassy lawn, raised gardening beds, wishing well, picnic tables & benches, a fire pit & a famous duck pond.

Any ideas who the famous duck is? Donald? Daffy?

The only helpful suggestion I have is to take a look at Napa's Oxbow Market. I think that concept could really work here. Although I do also approve of the idea (shown below) of replacing Sir Francis Drake with a bicycle path. Very Marin.

Montecito Plaza

Montecito Plaza Shopping Center is located on Third Street in East San Rafael and is part of a wider commercial hub that also includes the grocers Whole Foods and United Markets.

The center is over 50 years old and is locally-owned by San Rafael's Seagate Properties. Total retail space is approx. 130,000 sq.ft, anchored by a popular Trader Joe's grocery store, PETCO, and Rite Aid.

The center has a simple timeless layout based on a U-shape set around the car park, with a covered walkway providing sheltered access between the stores. Traffic is good, and since Trader Joe's opened a store in Larkspur last year, it's not impossible to find a parking space.

The retail mix includes everyday convenience stores and services, with a good selection of places to stop and eat or pick up food to go. There are several independent local retailers, such as Mad Rags as well as regional chains (Performance Bikes).

Pinkys Pizza and Cafe Trio are two popular eateries located at the entrance to a courtyard that leads through to the San Rafael canal at the rear of the property. The canal isn't the prettiest piece of water in the world, but it would be nice to see some effort to open up the back of the center and face the water with some restaurants and cafes.

The eastern side of the center is quieter, and includes evening-trade restaurants (Puentez Taqueria, Runi) and lower-volume retailers. Worth looking for is Jasmine Market, a small Mediterranean grocery store.

Overall, there are few vacancies in the center, with exceptions being small units hidden at the corners. Pasta Pomodoro is the highest-profile vacant unit. It's getting harder all the time to find a video store in Marin that hasn't closed, so I was surprised to see Silver Screen Video still open.

Overall, Montecito Plaza is a busy and popular shopping center, with a great location and good tenant mix. Expect to see it remain so for the next 50 years.

Summer 2010 update

After a long summer of non-blogging, here's a quick back-to-school update of what's been making headlines in the Marin retail world.

Starting today with a little news story in the Marin IJ about the City of Corte Madera's commercial real estate investment portfolio. Yes, that's right, this small city of approx 9,000 people decided it was a good idea to become a landlord, paying $10m for the Park Madera shopping center at the peak of the market in 2006. Come 2010 and the rent doesn't over the debt service on the city's bond. The city originally purchased the center as a possible site for a new recreation center, however, the recent construction of a new Bank of Marin branch suggests it will remain as a retail center for the foreseeable future.

In Tiburon, the owner of Woodlands Market announced his intention to have the new store in Tiburon open by March 2011. The store will be 12,000 sq.ft, which is larger than the existing Boardwalk Market, which will close before construction starts later this year. The redevelopment will also include the addition of a pharmacy, the first one in Tiburon for several years.

A few photos snapped from around the county:

First, I liked Mi Pueblo, the Hispanic market in San Rafael's Canal neighborhood. Offers a different selection from my usual grocery stores.

Also visited the new Whole Foods at the Alto Center in Mill Valley. Yes, it's expensive, but I do like shopping there: great food and a fun shopping experience.

Over at the Village at Corte Madera there are new Teavana and Brookstone stores, while Martin & Osa and Elegant Living Furniture closed their doors for the last time.

And what are they thinking at Restoration Hardware? The latest refurbishment of their store is in the style of a 13th century European castle, complete with stockade and banqueting hall.