| 
A former A.C. Moore store in Cambridge’s Fresh Pond Mall will be replaced by Central Rock Gym’s 12th Massachusetts location. Photo by Alex Peacher | Courtesy
Retail landlords may have found a roadmap to stability after the rapid evolution of shopping patterns, shaking up their tenant rosters with new entertainment and indoor sports concepts in a bid to make inroads with Generation Z.
From a new rock-climbing gym at Cambridge’s Fresh Pond Mall, high-tech golf in the Natick Mall to a proposed combination cannabis dispensary and recording studio at Faneuil Hall Marketplace in Boston, landlords are embracing non-traditional tenants as staples of the retail landscape.
As digital natives who grew up in an era of online shopping, the Generation Z cohort – whose oldest members are now 25 – represent a challenging but potentially lucrative demographic for brick-and-mortar operators.
“Landlords are always trying to get the next generation on board, and there’s a certain level of credibility to get the stamp of approval from younger shoppers,” said Whitney Gallivan, head of retail leasing and capital markets with Boston Realty Advisors.
At the Natick Mall, the Puttshack entertainment company has signed a 15,000-square-foot lease for its second Boston-area location, after opening a larger 2-story location at 58 Fan Pier Blvd. in Boston’s Seaport District earlier this month. The Chicago-based chain blends high-tech indoor golf with an extensive food and bar menu.
“These are the draws to get young people back in those shopping centers. Everyone is looking for these tenants, because it gives them something to do, and the mom shops the rest of the center,” said Corey Bialow, CEO of Needham-based Bialow Real Estate. “Everyone is looking for the Amazon-proof tenants.”
In Cambridge, Fresh Pond Mall landlord Urban Edge Properties this month inked a lease with Central Rock Gym, which will relocate from the nearby industrial Quadrangle district to a former A.C. Moore storefront for its 12th Bay State location.
Boston, MA, US-June 11, 2022: People at busy downtown food market and tourist destination with large dinosaur statue in background.
Faneuil Hall Operator Signs Off on Dispensary
A combination cannabis dispensary and recording studio could replace the vacant former Durgin-Park restaurant space at Faneuil Hall Marketplace in Boston. The Boston Cannabis Control Board this month deferred a vote until Nov. 16 on the Soul Cannabis project, which would occupy 15,000 square feet in the North Market building.
Boston planning and economic development officials last week spotlighted Faneuil Hall Marketplace as a target for enhanced local flavor and overdue maintenance projects, as part of the recommendations of their downtown revitalization report.
Contractor and Soul Cannabis CEO Eric Lawrence and former New Edition member Mike Bivins are partnering on the project along with dispensary operator Cypress Tree Management, which was co-founded by CEO Todd Finard of Boston-based retail developer Finard Properties.
“That would be a coup for Faneuil Hall and the city would be smart to let that happen,” said Peter Montesanto, a partner at retail brokerage SRS Real Estate Partners in Waltham. “Faneuil Hall is never going to fail, but they may have to contemplate more national users than they have in the past. High-end markets like that are thriving around the country.”
After opening a new location in Boston’s Seaport District this month, high-tech mini golf and restaurant operator Puttshack has committed to a second location at the Natick Mall. Photo courtesy of Puttshack
Infusion of Medical and Veterinary Tenants
For all of the buzz about experiential retail, service providers such as urgent care clinics and fast-growing veterinary chains are finding homes in strip centers and malls in the suburbs.
They’re even making inroads in high-end retail districts, as Bond Pet veterinary clinic builds out a prime space at 171 Newbury St. in Back Bay along with two new locations at The Street at Chestnut Hill and Arsenal Yards.
Like sports and entertainment concepts, such chains offer landlords the promise of financial stability among recessionary indicators and the potential effects on consumer spending.
“It’s always about who pays the most rent and how is their credit,” SRS Real Estate Partners’ Montesanto said. “If you have a retailer that’s really cool and brings foot traffic but needs a considerable amount of tenant improvements and can’t pay market rent, forget it.”
Steve Adams
Two categories that promise recession-resistant business models are walk-in medical clinics and veterinary chains, which have accounted for a massive uptick in suburban retail leasing in the past three years, said Adam Cirel, a partner at Boston-based Atlantic Retail.
Groups such as Banfield Pet Hospital – previously focused on locations within PetSmart stores – leased freestanding locations in strip centers in Framingham and Newton. ConvenientMD Urgent Care is seeking pharmacy-type end cap locations in strip centers, having recently leased 5,000 square feet at the Whole Foods Market-anchored Saugus Plaza.
“These groups are paying to be up-front and very visible and surrounded by a lot of parking,” Cirel said. “If you’re leasing space in a shopping center, these are at the top of your call list along with the quick-service and coffee users.”
