A&G REALTY ADDITION: Real estate advisory firm A&G Realty Partners has added Jonathon Graub as principal. Graub, who started Monday, left Charming Shoppes on April 5 where he was executive vice president overseeing the specialty chain’s real estate operations. While at Charming, Graub led the acquisitions of Modern Woman, Catherines and Lane Bryant, and was involved in the integration of each of the operations.
Graub noted that now is neither a boom or bust cycle regarding retail expansion. He also noted that there are not many new shopping malls being built, “causing the good centers to get stronger…. The A-malls are seeing some long-term tenants leaving, but are replacing them with tenants who can pay higher rents.” He said that mall landlords are seeking 10-year terms, with no options. If they give a five-year lease term, they might be willing to also give a five-year renewal option, Graub noted.
Andy Graiser, co-president of A&G, added, “Rents in the A-malls have escalated to where they were, or higher, at pre-2008 crash [levels]. We’re also seeing a lot of significant rent increases. The higher-end brands, such as Zara’s, are coming in and paying the higher rents.”
Both Graiser and Graub also see expansion in the outlet sector, both in terms of the development of new outlet centers and firms seeking outlet space.