Southern New Hampshire commercial markets ready for the new year and new opportunities - by Andrew Levy

Andrew Levy - The MEG Companies

It’s hard to come to terms with the reality of what weather is in store for us just weeks away writing this article on a gorgeous sunny fall day with vibrant foliage and almost summer like weather. Alas another summer has faded away but the vibes are good and people are still optimistic. New Hampshire brokers are tough-we are pushing through this economy which often still feels like a roller coaster ride-trying to believe that we are truly past rebounding and into a new era of positive growth.

Summer has been busy. July’s Boston ICSC Idea Exchange had one of the largest attendance  in years and the mood was upbeat and optimistic. Fair to say mostly familiar faces, property offerings, and vendors. Not many new retailers planning major openings in N.H.

Those that are only want the most prime power centers in the dominant A markets. My observation is that now more than ever it’s obvious that not all retail real estate is created equal. There are dynamic new developments and renovations, and many older second generation centers with large vacancies from former anchors. These are very difficult centers to market, and seem to attract start up mom & pop prospects, many of which are undercapitalized and high risk.

The  specialty retailers, service, restaurants, and grocers that are actively pursuing new opportunities are focused on affluent suburbs and communities that have significant population and household income. Fortunately several N.H. communities offer large scale developments that can attract these regional and national players such as Waterstone Retail’s Seabrook Crossing, DDR’s Seabrook Commons, and Linear Retail’s recent redevelopments and positioning of Daniel Webster  Crossing, & Shoppes in Nashua.

Major retail corridors in Nashua, Manchester, and others continue to attract new grocery stores, restaurants, banks, and urgent care medical facilities. Many are redevelopments of existing properties versus  ground up raw land construction, which reminds us of real estate 101 “highest and best use”.

Bedford has emerged as the next major high end specialty retail market with the Goffe Mill Plaza re-development of the former Wayfarer Inn on South River Rd. which will feature a Whole Foods, several in line retail stores, a fitness center, two pad sites and a residential building. Last month Encore Retail announced it’s acquisition of the Macy’s property and plans to create a high density class A mixed use development to include fashion, recreation, fitness, dining and office space. These two developments next to the recently redeveloped Bedford Mall and medical facilities will transform this section of South River Rd. with its access and visibility into  a state of the art commercial hub.

There has been a lot of reshuffling of the deck in the supermarket world and leasing of former Stop ‘n Shop locations. Hannaford Supermarket plans to  move into the Bedford store, has already opened in Exeter. The Milford store will become an Ocean State Job Lot. Burlington Coat is back and open in Manchester on South Willow St. along with a newly expanded Michaels. Price Rite opened it’s first N.H. in half of their space on Valley St., Manchester. Goodwill opened in their Hudson location.

Whole Foods has opened at Turnpike Plaza at Exit 7W on Amherst St. in Nashua and Aldi ‘s is under construction across the street. They  recently opened in Plaistow and will open next year in Derry.

Banks, credit unions, urgent care, fitness, and restaurants continue to be the dominant players in acquiring new locations. Several to note include: Primary Bank at Rte.101 Plaza, Bedford, Service Credit Union, Amherst St., Nashua. Members First Credit Union broke ground in Bedford,  Enterprise bank seeking approvals Amherst St., Nashua, Convenient MD Nashua, Bedford and Merrimack.

N.H. Liquor & Wine Outlet continues to be a major retail player. In addition to their recently opened flagship stores on I-93 in Hooksett they also announced or have opened stores in: New Hampton, Brickyard Sq., Epping, Exit 5 Londonderry Sunoco Travel Plaza-with Red Arrow Diner, in Salem at Rockingham Mall.

New retail leases include Dollar Tree-Second St., Manchester, Rte.102 Hudson,  Dicks Sporting Goods in Salem at Mall at Rockingham Park, Sprint rebranded 10 former Radio Shacks, Twin Smoke Shoppe opened at Exit 5, Londonderry, Xfinity at DWH Nashua, The Arch Nails and Marlissa fashions opened at Hood Commons, Derry, Integrated Fitness  and Route One Vapes at Epping Commons, Inner Dragon Martial Arts Harrison Comics, and Lavish Nails located at the Hudson Mall. Jordan Furniture announced plans for an expansion on DWH., Nashua.

A new strip mall on Loudon Rd. Concord across from Steeplegate Mall is almost complete by developer Michael D’Amante. Waterstone broke ground on “Granite Ridge” a major new project on Rte. 11 in Rochester.

There are several new restaurants-some new construction-others taking over previous establishments such as: Thirsty Moose Taphouse on Elm St., Manchester (JW Hill), Beach Plum at Brickyard Sq. Epping. b.goode, Noodles, and Not Your Average Joes on DWH Nashua, Dean Kamen’s The Foundry (Jillian’s) in Manchester’s mill yard. DQ in the midst of a major rebuild on Second St., Manchester Canoe in Bedford (Bugaboo Creek Steakhouse), Smuttynose under construction in Hampton, and Weathervane Seafood closed on Rt. 101 in Bedford after 30 +years.

Aroma Joes is emerging as the new coffee drive through player with new locations open on Rte. 28 in Derry, Rte. 125 in Epping, Beech St. Manchester, and others in the pipeline.

Rte. 125 Epping continues to add new businesses, i.e. Dollar Tree and Valvoline opening soon-Taco bell just got approved. The former prime corner site that used to be Cumberland Farms is rumored to be negotiating with a national tenant. There has been some activity with older gas stations as new laws coming into effect requiring updates to piping, tanks, and pumps  have forced some to close, others to update, some to stop selling gas.

Two former Cumberland sites were sold in Hooksett and Goffstown to an investor seeking tenants.

In summary, my fall forecast is one of continued momentum in leasing existing vacant space and continued growth in free standing retail development.

Andrew Levy, CCIM is vice president of retail leasing for The MEG Companies, Londonderry, N.H.