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Real Estate Group Forecasts Fewer Retail Vacancies

But will Hillsborough's empty spaces get new tenants?

 

The Goldstein Group, one of New Jersey's largest commercial real estate brokerage firms, says 2013 will see continuing improvement in retail space leasing—but will that mean Hillsborough's empty storefronts will be filling up? 

“The Northern and Central New Jersey retail real estate market continues to improve but it is still a ‘tenants’ market,” noted President Chuck Lanyard of The Goldstein Group. “Opportunistic retailers are leasing at attractive rental rates and securing locations by taking advantage of market conditions.”

The company's "2012 Year End Vacancy Report," issued earlier this month, says some companies are looking to take advantage of market conditions to secure favorable leases on spaces larger than 5,000 square feet. This could mean new tenants for Hillsborough's empty K-Mart store and the former Cost Cutters store location.

The reports noted Weiss Supermarket's plan to open in the former Pathmark.

But the strongest segment will be in leases for spaces between 1,000 and 5,000 square feet, the report says. Spaces such as the closed Blockbuster appear ripe for the picking by companies such as Advance Auto, Big Lots, Children’s Place, Ulta, Carters, Dollar Tree, Dollar General, companies the report notes that have been very active in northern and central New Jersey.

And several growing restaurant chains—Chipotle, Corner Bakery, Joe's Crab Shack—have been expanding and could find one of Hillsborough's vacant storefronts usable.

The report says Zinburger, Sonic, Pot Belly, Popeyes, Quakersteak & Lube and Chick-Filet also continue to expand.

"We are seeing this new trend of shopping center spaces being now utilized by medical and dental practices," the report says. "Prior to the recession, landlords were reluctant to lease space to the medical community, but having space leased is critical and landlords are now more receptive and these uses do create additional traffic to a retail center. Some of the new medical tenants utilizing retail space include Dr. Dental, PM Pediatrics, Doctors Express and Doctor’s Office Urgent Care."

What would you like to see open in Hillsborough (besides Trader Joe's or Whole Foods, which are not opening stores in our area)? Have you been to any of the companies mentioned in the report that you would recommend for Hillsborough?

Related Topics: Commercial Property and Real Estate

simplify365

3:29 pm on Monday, March 18, 2013

I would like to see the 35 acres of woodlands across from Valley Road on 206 not get decimated for housing when there is ample existing impervious cover at the Kmart site and the Cost Cutters site to locate a mix of new housing and retail. Why take down 2,500 trees that help to absorb floodwaters when there is perfectly useful asphalt across the street for development? Hillsborough claims it wants to develop a "Town Center" along Route 206 (they created the zoning for it!) yet more doctors offices, banks, big boxes, and fake 2nd stories on existing buildings (DeCanto's) seem to be taking priority - NONE of these add value to the walkable Town Center Hillsborough supposedly wants to create. Hillsborough keeps passing up these opportunities to become something special... someplace people will actually want to live and shop! Hillsborough needs less flood inducing developments and more creative solutions to fill empty big box stores and parking lots! This will help to preserve the wooded and green areas that contribute to flood control, biodiversity, and agricultural preservation in this ever-suburbanizing community.

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globetrotter

8:25 am on Tuesday, March 19, 2013

Agreed. The "Town Center" is just a pipe dream that has been going on for many years and will never happen. Perhaps some of these paved spaces could be converted into a different "Town Center" concept, such as found in Williamsburg, VA, Myrtle Beach, SC and Baton Rouge, LA, to cite a few. These are attractive mixtures of various types of housing, plus retail shops and restaurants.

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S.G.

9:58 am on Tuesday, March 19, 2013

That is a great idea. Keep the businesses that are already there as the base for the retail, then add the apartments, parking, etc.

It would save the Valley Road/206 area and make great use of a vacant area.

iam655321sir

7:18 am on Tuesday, March 19, 2013

Rights of private property ownership is a basic tenet of the freedoms we enjoy in this country. Every American I know enjoys this right and does not want to see that changed. As such, I would like to see whatever happens fulfills the desires of the owners of those properties, so long as it does not endanger my rights to clean air and clean water.

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AcTwisted

8:23 am on Tuesday, March 19, 2013

put a Dick's Sporting Goods where Kmart was, & put a Chipotle or Qdoba where the chinese buffet was next to Saladworks.

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Kelly

2:42 pm on Tuesday, March 19, 2013

There's a Chipotle in Bridgewater. Make it a Qdoba instead.

Fran

8:41 am on Tuesday, March 19, 2013

I would hate to see another Dollar store or a Big Lots come to Hillsborough. I still think that a Pannera would be perfect for the empty Blockbuster store. We need a nice luncheon place badly.

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Lou H

9:29 am on Tuesday, March 19, 2013

The Kmart space is perfect for a Hobby Lobby. They are a cross between Michael's, AC Moore, Home Goods and the late Rag Shop all wraped into one. Very versatile store with plenty more then just crafts. And the only one in South Plainfield is just too far. Better then Easton PA though.

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gracie15

9:33 am on Tuesday, March 19, 2013

They just built new office spaces for a medical park INSTEAD of utilizing what we already had: empty store fronts. It seems that each developer wants to put their stamp on concrete! How about another supermarket??? One that people can afford??

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Mark

7:10 am on Thursday, March 21, 2013

Amen. We keep building and letting the empty storefronts sit vacant. That KMart plaza is a death spot. Nothing is in there and I don't see anyone wanting to if they can build a new strip mall anywhere. That area is tough as it is still 1 lane.

Greg Turcotte

10:42 am on Tuesday, March 19, 2013

I find it funny the article mentioned Sonic as a business looking to expand. Too bad the locals in Hillsborough chased them out with imaginary pitchforks when they tried to open up shop down by the diner.

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sammy

1:22 pm on Tuesday, March 19, 2013

"open up a shop"??? as if it was some pop and mom's quiet little gathering hole.
I guess youre not a resident of the area. That space was too small, they would be too noisy, and the traffic thru the neighborhood would be awful. they refused to dim lighting, make signs smaller and when confronted with a poor drainage plan that would not flood my street they resigned. no pitchforks, just reasonable disagreement and an ability to follow the tenents of our laws. BTW... i hear Stewarts is coming , so its not all that bad news. We can bring our pitchforks and chow down on floats and fries. see you there

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Greg Turcotte

4:24 pm on Tuesday, March 19, 2013

Sammy- I do live in Hillsborough and I do know there was formerly a drive up eatery there beforehand, so the complaints are hypocritical at best.
You all want these big chains and stores and saying a filled lot is better than an empty lot, yet start nit-picking on what you want there. You are objecting to a Sonic yet ok with a Stewarts? Sorry but again this is hypocrisy showing it's ugly head here again. Want big city stores and chains yet whine when you lose small town charm in the process.

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Mark

7:14 am on Thursday, March 21, 2013

Sammy-- how can you say they would be too loud and the traffic thru the neighborhood would be awful. You cannot predict that. The site was on Route 206 and there was no reason to leave that road to travel unless you are a local looking to avoid the traffic. It was not on a major road so that is an unfair statement. And as for the noise.... I guess you know what will happen in the future.

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Steve

10:05 am on Thursday, March 21, 2013

I would prefer a Stewarts over Sonic.

Ramona Larsen

11:53 am on Tuesday, March 19, 2013

I too, would like to see Panera in the old Blockbuster space. I would also love it if Starbucks would move to a larger location. Preferably to the old Farmers Market next to the old Kmart. A Big Lots in the old Kmart space. A Qdoba or Chipotle in the old Chinese Buffet is a great idea as well. All in all, the problem is all the rules of the signage. Unless you live in Hillsborough, you won't know these places are there unless you really look while driving down 206.

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Greg Turcotte

4:31 pm on Tuesday, March 19, 2013

That last line hits the nail on the head. This is why big chains won't come and smaller business that do open struggle in Hillsborough. The ordinances governing these rules are archaic and hinder business but still supported by the locals because they do not want to make Hillsborough "feel like a city." Look at the shops in the strip mall by the old K-Mart. The storefronts are not facing the street and the signs for the businesses are so small I barely notice them driving on 206. This is why businesses in that mall have continued to struggle and bigger chains do not want any part of it.
If everyone wants these nationwide chains you have to put up with the consequences such as noise, traffic (like 206 is a quiet street) and other issues that might come up. If you do not then all these suggestions are just pie in the sky.

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LisaD

12:39 am on Thursday, March 21, 2013

@ GT - You hit the nail on the head. We have systemic problems at the local government level and until they change, things will not get better.

annoyingcat

1:54 pm on Wednesday, March 20, 2013

Stewart's Root Beer shouldn't be as large as a Sonic would have been. There was once a Stewart's where the diner is located now!!!

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LisaD

12:37 am on Thursday, March 21, 2013

I would like a Stewart's.

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sammy

9:28 am on Thursday, March 21, 2013

annonyingcat is correct. and for those who thought Sonic was a good idea ...1) when they where demolishing the building, erecting very tall well lit signs(PLURAL) , 3) building a new building with a larger parking area, causing flooding 4) parking area equipped with more lights, a loud continuous sound system , 5) and Greg / Mark , the school will empty and HS children of driving age will use my neighborhood for a cut thru, avoiding lights and traffic on 206.

Stewarts, typically is a family trip, not a teen hangout. the building remains. and the owners , rumor has , are from town. dont be a stewie hater

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Greg Turcotte

10:28 am on Thursday, March 21, 2013

Sammy/Annoyingcat - And there is a reason why Stewarts has not been there in a long time. Have you been to any Stewarts locations in a while? They are all dead and/or closed. Why invite a dying business into town so it would be shuttered within the next couple of years anyways?
Also the reasons given for not wanting Sonic are laughable: 1) There are plenty of well lit signs in Hillsborough already. Plus that plot of land is zoned for commercial so if you live nearby you have to figure that a business like that could move in at any time. Don't act shocked when it does. 2) don't know where your second reason went 3) that entire area is pretty low lying and prone to floods already 4) Please see number 1 5) You have to figure that when living near a school that traffic from it may come by your area. Do you also own the street and others not allowed to use it?

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S.G.

10:39 am on Thursday, March 21, 2013

The Sonic application had major variance requests and their business style proved ultimately unsuitable for the location.
http://hillsboroughnjjournal.blogspot.com/2012/01/sonic-epilogue.html

If Stewarts is perceived as being "neighborly", they have a better chance of success. Plus, we won't have to drive so far.

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Greg Turcotte

12:30 pm on Thursday, March 21, 2013

S.G. - The variances they asked for would not be much different than the ones that were filed by the stores in the Lowe's / Kohl's shopping complex (signs, use of land, etc) if you compared the two.
Also as for "unsuitable for their business," it only became that way after a strip of the land was declared a wetland by the NJDEP in a visit to the site in December of 2010 and a later visit in Feb of 2011 confirmed that. The funny thing is that the NJDEP also visited the site in Sept of 2010 and found NO WETLANDS. Coincidence?
Now that it seems like people want Stewarts in that plot instead, I wonder if the fact that part of the site is a "wetland" will be an issue for them as it was for Sonic......

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Greg Turcotte

12:31 pm on Thursday, March 21, 2013

Oh BTW here is the article about the NJDEP visits here including the Sept 2010 where they initially found no wetlands existed on the site
http://hillsborough.patch.com/articles/wetlands-prompts-withdrawal-of-sonic-application

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Kelly

4:07 pm on Thursday, March 21, 2013

I'm not trying to come down on either side of this debate, but I agree that it is no coincidence that DEP was didn't see wetlands in September, but did in December and February. If you remember, we had a drought during the summer of 2010 and it would have been difficult to observe/delineate a wetland during such dry conditions. It is hard to tell what soils have poor drainage when there is no soil moisture to observe. Once some rain/snow falls, it is easier to see that the land is not well drained and has wetland type soils.

LisaD

12:36 am on Thursday, March 21, 2013

Sorry, but you guys are crazy if you think any of those big names are coming to Hillsborough. Bridgewater has them all and Montgomery is going to be announcing a major redevelopment of the Village Shopper complex and the start of the Montgomery Promenade construction (which will be anchored by a very high-end grocery store).

When this happens, it will suck all of the energy out of our portion of 206 and to their portion that serves an untapped, extremely wealthy market. Very bad news for us.

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Greg Turcotte

9:14 am on Thursday, March 21, 2013

From what I see from the website, the Montgomery Promenade will be anchored by a Super Stop & Shop which we already have here in Hillsborough.
However you are right about the big box stores not coming to Hillsborough. The arcahic laws we have here and continued opposition to any new commercial development by the local populace will prevent that. The companies want to put their store in a high visibility and high traffic area to attract customers, while residents would love for these stores to come, but only in remote locations that could not support these stores anyways. There is plenty in Hillsborough already and let's better support the businesses we already have before more flee to greener pastures.

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S.G.

10:43 am on Thursday, March 21, 2013

Montgomery Promenade has been proposed about as long as the 206 Bypass. Also, Montgomery residents perceive themselves as more Princeton-type-people and tend to go there for shopping.

sammy

12:42 pm on Thursday, March 21, 2013

Greg, Please don't take this the wrong way - but you are laughable. To suggest that we raised money to hire an attorney and an excellent expert planning witness because we just didnt like Sonic and or any application for that area because as residents we where shocked to find out that "gambling ' was happening on 206 is the height of ignorance. Nobody is questioning Stewart s or the current occupant , karate school right to be there , nor Sonics right to be there. As someone kindly noted the plan was awful for that location. They where asked to try others and refused. They wanted the enormous sign so people riding on the bypass could see a well lit sign. And no , nobody has or ever had a sign as tall or large as the one that they asked for. And nobody has music blasting all day and night.

As for your dumb comment about Stewarts... well , everyone i talk to is excited and will visit Stewarts. it is a reminder of our past and with an updated look at the current building will be a welcome addition if this town will allow it to be done. And not only are you dumb on this aspect of Stewarts, but you would have to be pretty dumb to think any new owner would not do their due diligence and have the blessing of the owners of Stewart to re-open in a location that was once a Stewarts - if they didnt , shame on them. But i for one would never go to a Sonics... but will go to have a root beer float at Stewarts , and i would offer a wager that you are wrong.

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sammy

12:50 pm on Thursday, March 21, 2013

Greg... i just saw you posted some more laughable material . That article does NOT say that. it states that the expert said x and the state said y. The state said y , one time. No reversal by the state. It either is or isnt. their is no interpretation of maybe it is y... UGH!

According to the letter, Edward A. Kuc, a wetlands specialist retained by Mascia, had initially performed a wetlands study in 2010. His report, filed with the New Jersey State Department of Environmental Protection in September 2010, found no wetlands on the site. A subsequent site visit by a DEP representative on Dec. 8 2010, found a wetlands strip, which Mascia and his representatives were informed of on Jan. 19, 2011, the letter continued.

As you can read! Well at least some of us can. Give it up pal

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