The Role of an Anchor Tenant in Retail Real Estate

Up Development pic
Up Development
Image: .updevelopment.com

Ferris State University graduate Scott Fish functions as the principal of UP Development, a firm which focuses on the management of retail projects in the Southeast. A resident of Franklin, Tennessee, developer Scott Fish has have most recently worked on projects for major big-box retailers like Dick’s Sporting Goods and Home Depot, two stores that often serve as anchor tenants in retail real estate properties.

An anchor tenant, by definition, is a major, recognizable retailer that serves as the primary draw for shopping traffic within a retail center. Anchor stores are usually surrounded by ancillary tenants, which are smaller, usually lesser-known retailers that gain more foot traffic from the shoppers patronizing the anchor tenant than they would independently.

Because of their ability to bring in customers, anchor tenants typically make a lower rent payment than other stores within a shopping complex. In large-scale retail real estate projects like malls or community centers, several anchor stores will be placed in proximity to each other to draw in an even higher number of shoppers.

2016 Retail Development Predictions

Retail Development 2016 pic
Retail Development 2016
Image: bdcnetwork.com

Scott Fish is managing partner of UP Development, a Tennessee-based developer focused on retail projects throughout the southeastern United States. With over 17 years of experience as a developer, Scott Fish guides his company in constructing retail centers on time and within budget.

According to experts, while the stock market will continue to be a roller coaster and foreign markets are even more unstable, real estate is projected to be one of the bright spots for 2016. For example, the real estate communications firm Taylor Johnson has predicted that 2016 will be a busy year for retail leasing and development activity.

Taylor Johnson expects the following trends in 2016:

-demand for off-price retailers like Nordstrom Rack and TJ Max,
-levitation to less-expensive Class B properties,
-newer, larger fitness centers,
-focus on environmentally friendly building improvements,
-increased foreign investment in the U.S. real estate market, and
-additional overhead and physical presence expansion for traditional online retailers

Contractors are gearing up for a busy year. From 2014 to 2015, the construction industry grew by 10 percent. Many developers are projecting similar or even higher growth for 2016. Regardless of an unsteady stock market and concerns over foreign affairs, the construction industry appears to have a high ceiling for continued growth through 2016.

Publix Makes $4 Million Dollar Gift to Habitat for Humanity

Habitat for Humanity pic
Habitat for Humanity
Image: habitatsev.org

A graduate of Ferris State University, Scott Fish works as a developer and manages many types of projects. In his career as a developer, Scott Fish has successfully designed and permitted retail centers anchored by major retail stores including Home Depot, Walmart, and Publix.

Publix is a chain of food stores across the southern United States that has been in business over 85 years. Publix offers conventional grocery services like bakeries, and delis, and many of its locations have in-house retail pharmacies, as well.

Publix contributes to a number of charities through its philanthropic arm Publix Super Markets Charities. Recently, the chain made a $4 million dollar commitment to Habit For Humanity to build homes across the South in 2016. The gift will allow for 40 new homes to be built, and each home will come with a pantry fully stocked by Publix. Additionally, Publix employees will contribute to the building of the homes.

The supermarket chain has been contributing to Habitat for Humanity since 1989, and this donation was its largest yet. The new houses will be built in Alabama, Florida, Georgia, North and South Carolina, and Tennessee.

Home School Programs at A-Game Sportsplex

Scott Fish, principal of UP Development in Franklin, Tennessee, stands out as the purchaser and redeveloper of what is now the A-Game Sportsplex. Developer Scott Fish purchased the facility to prevent its shutdown, and has since donated it back to the community as a thriving ice arena.

In addition to its traditional youth programs and adult leagues, A-Game Sportsplex hosts a number of classes for home-school students. Its 2015 offerings include two winter sessions and two spring sessions, the latest of which begins April 22. The Sportsplex welcomes children age 6 and above to these hour-long Wednesday afternoon classes, which include 30 minutes of instructional time and a 30-minute practice session.

A-Game Sportsplex also sponsors a fitness class for homeschoolers. The spring 2015 session runs until May 14 and includes a variety of games and activities, including basketball, ice skating, laser chase, and weight training. Children are welcome to stay and eat their own bagged lunches at the Sportsplex after class. Each class is available on a drop-in basis or in unlimited packages sold by the month or semester.

Developer Scott Fish Talks about the A-Game Sportsplex in Franklin, Tennessee

Scott Fish is a developer serving as a Principal at UP Development based in Franklin, Tennessee. Over the years, he has developed multiple commercial properties, including a 45,000-square-foot DICK’S Sporting Goods and a 60,000-square-foot Toys“R”Us at The Mall at Millennia in Orlando, Florida. Here, Scott Fisher discusses one of his most significant accomplishments, the A-Game Sportsplex in his hometown of Franklin, Tennessee.

Q: How did you come to acquire the building that would ultimately become the A-Game Sportsplex?

SF: The Southern Ice Arena was losing around $30,000 per month. The 110,000-square-foot facility was on the verge of closing down, so I purchased it for $6 million.

Q: Why did you purchase the arena?

SF: My daughter’s hockey team, along with a handful of others, was playing there. With the looming shutdown, all those players would have had to find a different home base. I also saw that the arena could be turned into something that benefited the entire community.

Q: Talk about the development process and the arena’s transformation.

SF: I felt that in order for the complex to be self-sustaining, it needed more than an ice arena, so I expanded it by about 70,000 square feet. I added multiple courts for basketball and volleyball. I also built a fitness center, a laser tag facility, and a pro shop, which helped to make the complex economically sustainable. Within three years, the financial situation had turned around completely.

Q: Who owns the complex now?

SF: I donated the complex to the city. Now, community sports teams play hockey, lacrosse, basketball, football, and volleyball there.

About Scott Fish, Developer

Leveraging his company’s resources to redevelop troubled assets, Principal of UP Development Scott Fish has engaged in a multitude of local and regional workout projects over the past 17 years. Operating his company out of Tennessee, Scott Fish worked in close conjunction with the Nashville Predators of the NHL to develop and sustain youth hockey programs in the state. In fulfilling this endeavor, he purchased a declining community ice rink and redeveloped the facility. Scott Fish purchased the 110,000-square-foot building in Franklin, Tennessee, for less than half of its original cost just before it was about to shut down. Securing an expansion of 70,000 square feet, he and his company added basketball and volleyball courts, as well as renovating the existing ice rink. At the time of its purchase, the facility hosted only a smattering of high school teams and games. By the end of Scott Fish’s redevelopment efforts, more than 20 schools held hockey games at the community facility, known today as the A-Game Sportsplex. Currently, Scott Fish and his associates at UP Development are engaged the redevelopment of a 250,000-square-foot retail center in Orange County, Florida. Stalled for five years, this $36-million workout project involves the Branch Banking and Trust Company (BB&T) buyout of Colonial Bank, a former subsidiary of Colonial Bancgroup Inc. Additional works in progress include a relocation of a Toys “R” Us from the Orlando Fashion Square mall and the completion of a 60,000-square-foot Toys “R” Us at Orlando’s Mall at Millenia. Supporting his community through a multitude of venues, Scott Fish has raised money for the officers of the Franklin Police Department and their families, as well as sponsoring the purchase of musical instruments for schoolchildren across the country. Scott Fish also partnered with the Ford Motor Company and the Tennessee Education Lottery to help sponsor the Franklin Rodeo, held by the Franklin Noon Rotary Club, and he supports youth barrel racing, as well.