Q&A: Legacy Commercial Exec on Revitalizing Strip Centers
Vice President Ben Hoogland on harnessing Sun Belt retail investment opportunities.
With retail development at record lows, revitalizing older retail centers remains a key strategy for commercial real estate players seeking long-term growth opportunities.
One company focusing on such redevelopment projects across the country is Legacy Commercial Property, which boasts a real estate portfolio of 650-plus properties, accounting for more than 6 million square feet across 21 states.
We asked Vice President Ben Hoogland to expand on his company’s investment focus and weigh in on what it takes to breathe new life into underutilized retail spaces.
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How do you select the best strip centers for acquisition and revitalization? And where in the country are you setting your sights?
Hoogland: We prioritize long-term investments in emerging communities and focus on acquiring and revitalizing strip centers in secondary and middle-market cities.
We identify cities poised for rapid growth by leveraging our experience to understand consumer needs, locate underutilized prime locations and unlock the full potential of our properties.
What specific improvements are you targeting? Give us some examples.
Hoogland: We enhance the shopping centers’ curb appeal, accessibility and property value through various new construction, redevelopment and beautification initiatives. In Chattanooga, Tenn., for example, we are expanding parking to better serve customers and employees, and in Spartanburg, S.C., planned updates include new signage, parking lot improvements, repainting, landscaping cleanup and some facade alterations.
Tell us about your most recent renovation projects?
Hoogland: Legacy Shoppes at Jeffersonville spans 180,000 square feet, with 40 percent currently vacant. Located at 1439 E. 10th St. in Jeffersonville, Ind., the retail center is undergoing a full-scale remodel over the next seven months, with a focus on attracting upscale tenants. The renovations are part of a wider effort to update shopping centers and commercial properties in the region. These changes—such as infrastructure improvements and enhancing the overall look—are designed to improve the tenant experience and support economic growth in downtown Jeffersonville.
Located in Spartanburg, S.C., Cedar Springs Crossing is situated in the area’s most prominent intersection, allowing unrestricted access. It is currently 15 percent vacant and features a mix of national and local tenants, including Subway, Bargain Hunt and Happy Nails.
The Shoppes of East Brainerd in Chattanooga benefits from high traffic counts of 32,000 vehicles per day. Featuring tenants such as Starbucks, Crumbl Cookies and Dentists of East Brainerd, the retail center is currently undergoing a parling lot expansion.
Situated at 1909 S. Muskogee Ave. in Tahlequah, Okla., Tahlequah Crossing is in the city’s best retail location, with strong traffic counts of 30,000 vehicles per day. Tenants include Little Caesars, AT&T and Em & Em Nails.
What challenges typically arise when working on these projects, and how do you overcome them?
Hoogland: Revitalizing strip centers often presents challenges such as navigating zoning regulations, coordinating construction timelines with tenant requirements and balancing budget constraints with quality improvements. In each project, we’ve encountered unique hurdles like infrastructure upgrades or the need to align with community preferences.
We overcome these challenges through proactive communication with community members, local authorities and business partners, leveraging our experience to streamline processes and adapting our strategies to address unforeseen obstacles promptly.
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How do you decide which tenants are the most suitable for a revamped property?
Hoogland: When selecting tenants for our revitalized properties, we prioritize those that align with the community’s needs and aspirations while enhancing the overall appeal of the strip center. This involves assessing the demographic profile of the area, understanding local consumer preferences and targeting a mix of national brands, regional operators and local businesses that complement each other and drive foot traffic. Additionally, we look for tenants who can benefit from the strategic location and amenities we enhance through our revitalization efforts.
How do you measure the success of a revitalized retail project?
Hoogland: Success for us is multifaceted. We evaluate the impact of our revitalization projects based on increased occupancy rates, tenant satisfaction surveys, improved property value and positive feedback from the local community. Financial metrics such as rental income growth and ROI are also crucial indicators. Ultimately, our goal is to create vibrant spaces that not only attract customers and tenants but also contribute positively to the economic growth and character of the surrounding area.
What are some risks you consider before purchasing an older strip center?
Hoogland: Before acquiring and revitalizing strip centers, we carefully assess risks such as market saturation, economic stability of the region, potential tenant turnover and regulatory challenges. Financial risks—including cost overruns during renovation and fluctuating property values—are also key considerations.
Mitigating these risks involves conducting thorough due diligence, building strategic partnerships with local authorities and contractors, and maintaining flexibility in our project timelines and budgets.
What trends do you see shaping strip centers going forward?
Hoogland: Looking ahead, we observe several trends influencing the evolution of strip centers. These include a growing emphasis on convenience-focused retail and essential services, increased demand for sustainable and energy-efficient buildings and the integration of technology to enhance customer experiences and operational efficiency. Additionally, consumer trends indicate a growing preference for strip centers as go-to destinations for everyday retail needs, driven by their accessibility, diverse tenant mix and convenient shopping experience.
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