{"id":29997,"date":"2018-01-08T11:15:52","date_gmt":"2018-01-08T16:15:52","guid":{"rendered":"https:\/\/biznews.fiu.edu\/?p=29997"},"modified":"2018-01-29T09:29:04","modified_gmt":"2018-01-29T14:29:04","slug":"riding-the-retail-revolution-courtelis-castan-shares-insights-on-changing-development-landscape-at-fiu-jerome-bain-luncheon","status":"publish","type":"post","link":"https:\/\/biznews.fiu.edu\/2018\/01\/riding-the-retail-revolution-courtelis-castan-shares-insights-on-changing-development-landscape-at-fiu-jerome-bain-luncheon\/","title":{"rendered":"Riding the retail revolution: Courtelis\u2019 Castan shares insights on changing development landscape at FIU Jerome Bain Luncheon."},"content":{"rendered":"

Despite the massive growth of e-commerce, online retailers like Amazon are establishing a brick-and-mortar presence to engage and create loyalty with customers, who still want to see and touch products they\u2019re purchasing. It\u2019s another indicator that all retailers\u2014and shopping centers themselves–must be prepared to reinvent themselves as the retail landscape continues to undergo seismic changes.<\/p>\n

This was one of many insights on the emerging real estate environment shared at the 2017 Hollo School of Real Estate<\/a> Jerome Bain Developer Luncheon on November 17 at the InterContinental Miami.<\/p>\n

At the event, Bill Hardin, Hollo School director, and Eileen Cardelle, FIU admissions manager and adjunct faculty member, welcomed two representatives of Miami-based developer Courtelis Company<\/a>, who shared wide-ranging insights on the future of shopping centers in challenging times.<\/p>\n

\u201cCommercial real estate is a relationship business,\u201d Hardin said. \u201cWe\u2019re happy to have Rod Castan, president of Courtelis\u2019 leasing and management services, and Brian Kiely, their CFO, because for Courtelis, relationships are part and parcel.\u201d Cardelle, who worked with Courtelis for five years, said the developer, founded in 1963, \u201cis very smart, but most important, very ethical.\u201d<\/p>\n

\"Rod
Rod Castan<\/figcaption><\/figure>\n

Castan (BBA Finance \u201985), also past Florida state director of the International Council of Shopping Centers (ICSC), said Courtelis\u2019 \u201cdeep roots in South Florida,\u201d as well as his own, have enabled them to anticipate and be responsive to shifting trends in commercial and residential development. He also paid tribute to FIU, his alma mater, as a factor in his success.<\/p>\n

\u201cI owe a lot to FIU for launching me on a 30-year career. I started as a young, green rookie straight out of FIU in this business,\u201d said Castan who, in his 23-year tenure at Courtelis, has been involved in development of 30 shopping center and commercial projects.<\/p>\n

Courtelis\u2019 early signature development was The Falls shopping center in South Dade. It currently is involved in retail, residential, and mixed-use projects in Pembroke Pines, Doral, South Dade, Naples, and Orlando.<\/p>\n

\u201cSo what about the alleged \u2018retail apocalypse\u2019?\u201d Castan asked, referring to major retailers like Sears, J.C. Penney, and Macy\u2019s closing stores or going out of business. \u201cLow unemployment and interest rates, 2 percent inflation, and 5 percent retail property vacancy rate doesn\u2019t sound like an apocalypse to me.\u201d<\/p>\n

The root cause of failure is often debt overload and \u201ctoxic private equity,\u201d he said. \u201cRetail is still growing \u2013 over 4,000 stores opened across the country in 2016. For every company closing stores, 2.7 are opening stores.\u201d<\/p>\n

\"Featured<\/p>\n

New developments appeal to the \u201ctime-starved.\u201d <\/em><\/p>\n

But with online sales accounting for 29 percent of growth, and e-commerce up 64 percent in the past three years, retailers and developers have to reimagine themselves \u201cto appeal to time-starved consumers,\u201d Castan acknowledged.<\/p>\n

He cited Courtelis\u2019 new Murano Apartments in Orlando, developed with Miami-based Kislak Organization and HMG Courtland Properties, creating a walkable community with gaming rooms, fitness area, and nearby retail, designed to appeal to millennials.<\/p>\n

Coral Town Plaza in Naranja, opening in April 2018, and Pines City Center in Pembroke Pines, opening in June with Courtelis\u2019 client Terra Group, are both mixed-use projects that bring living space, retail, health and fitness, and arts and culture in walkable communities.<\/p>\n

They are anchored by Walmart and Publix, respectively, and Courtelis\u2019 established name helped draw the stores. \u201cAgain, it\u2019s about relationships,\u201d Castan said. \u201cRetailers look to work with groups like Courtelis and Terra that have this kind of credibility. Developers come and go; they know we\u2019ll do what we say we will.\u201d<\/p>\n

Wanted: Fitness and health-focused businesses.\u00a0 <\/em><\/p>\n

As focus on health and lifestyle has increased over the past decade, so has shopping center space devoted to health, fitness, and beauty. There\u2019s also a lot of growth in the natural and organic foods sector, with Publix Greenwise stores expanding to compete with Lucky\u2019s Market, Sprouts Farmers Market, and Trader Joe\u2019s, Castan said.<\/p>\n

While it may seem counterintuitive, well-known online brands including Warby Parker, Suit Supply, and Bonobos are \u201cgoing omni-channel,\u201d opening physical locations to better connect with customers. Since Amazon bought Whole Foods, it has established a presence in the grocery stores.<\/p>\n

During a Q&A, Castan was asked how small retail centers can stay competitive in a tough environment. \u201cConsider consolidating space to bring in an anchor or unique destination tenant to increase traffic,\u201d he said. Iconic local establishments can help drive successful retail environments as well. Citing a popular restaurant in Pinecrest, he noted, \u201cConsider the history and the traffic draw of a small mom and pop restaurant such as Wagons West restaurant in Suniland Shopping Center as an example.\u201d<\/p>\n