San Antonio Express-News (Sunday)

More retailers here hanging on — for now

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can rework things for their business to survive,” said David Nicolson, president of Weitzman

San Antonio.

But “we’re going to see vacancy increase as we move toward the end of the year,” he added.

Grocers and home improvemen­t stores have been the clear winners during the pandemic, as shoppers stockpile food and toilet paper, and take on the DIY projects they’ve been putting off.

But stores where customers are usually in close quarters are suffering. Malls and shopping centers had been focusing on adding movie theaters, restaurant­s, gyms, laser tag facilities and bowling alleys to draw foot traffic, but those businesses are now grappling with weeks of lost revenue and occupancy restrictio­ns.

“With many projects, we’ve been very excited to internetpr­oof them, which has created a nice line of businesses that you can’t get online,” Nicolson said. “But all of the businesses that are internet-proof in most cases were the ones most impacted by COVID-19 issues.”

The venues have rolled out an array of safety measures, including ample space between seats, stepped-up disinfecti­on protocols and touchless payment methods, and are trying different tactics to keep business going.

Theaters are showing old movies, and many restaurant­s continue to offer pick-up and delivery services. EVO Entertainm­ent is putting on a drive-in film festival this summer, and actor Anthony Michael Hall is hosting drive-in double features at the company’s locations in Schertz and Kyle.

Nicolson remains optimistic that customers will return to their favorite haunts.

“People are going to go back to the movies. They’re going to go back to their gyms and their restaurant­s and bars,” Nicolson said. “We’ve seen it demonstrat­ed that there is pent-up demand, but we’re going through painful times to get to the other side of this to enjoy that pent-up demand.”

A drop in constructi­on in recent years has helped keep local shopping centers relatively full. About 10.2 million square feet of retail space was built between 2006 and 2010, compared with an estimated 3 million square feet between 2016 and 2020, according to Weitzman.

As retailers adopted an omnichanne­l approach — an industry term that refers to integratin­g physical stores with e-commerce — they found ways to operate more efficientl­y with less square footage, Nicolson said.

Existing space also is being carved up and repurposed. For example, Bed Bath & Beyond, Buy Buy Baby and Tru Fit Athletic Clubs are moving into a former Sears store at Park North Shopping Center, and Burlington took over an old Babies R Us at the Rim shopping center.

Grocery stores and smaller shopping centers comprise much of the new retail under constructi­on. There are fewer barriers to building the small projects in part because an anchor tenant doesn’t need to be secured.

This year, the metropolit­an area is expected to add about 330,000 square feet of retail space in new and expanded projects at 25,000 square feet or more. Much of it is coming to

San Antonio’s North and West sides, with small shopping centers in the works near the Rim and along Culebra Road on the far West Side.

Housing constructi­on is booming in those areas, and the far West Side has been the fastestgro­wing part of the region since at least 1980. Flix Brewhouse opened a dine-in movie theater on Loop 1604 near the Shops at Dove Creek stores this year, and H-E-B is planning to open a store at the intersecti­on of Potranco Road and Stevens Parkway.

“The centers follow the growth,” Nicolson said.

madison.iszler@express-news.net

 ?? Bob Owen / Staff photograph­er ?? Dina Manriguez of Freestyle Clothing Mall greets customers as Ingram Park Mall reopens May 1. About 94 percent of the area’s retail space was occupied at midyear, according to a July report.
Bob Owen / Staff photograph­er Dina Manriguez of Freestyle Clothing Mall greets customers as Ingram Park Mall reopens May 1. About 94 percent of the area’s retail space was occupied at midyear, according to a July report.

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