CONTENTS

December 2006

• FEATURES
• Cheaper to build than buy
• Development isn’t cheap, what with the high prices of concrete, oil and other materials. But it’s still cheaper than buying retail real estate. Consequently, landlords’ development and redevelopment pipelines are full.
• Retail to the rescue
• Cities are turning to retail and other uses to make redundant sites useful again. Former factory sites, warehouse districts and other rundown parcels are spawning projects that benefit not only the neighborhoods around them, but also their host cities as a whole.
• U.K., Germany to join the REIT club
• Britain and Germany are scheduled to become the latest European countries to allow REITs next month. Britain in particular has several property companies chomping at the bit to become REITs.
• Britain goes mall steam ahead
• There are some 30 regional centers on the drawing board for Britain over the next five years which, should they all open, would add 53 million square feet of retail to the country’s stock.
• Power centers for auto dealers
• Developers are clustering car dealerships around retail projects in specially designed auto parks.
• Poconos revival
• Where once the Poconos were a place to visit, increasingly they are a place to live for commuters working in NewYork or Philadelphia. And where homes go, so do retailers.
• Golden rules for Web site design
• Web sites belonging to multimall landlords have to contain a lot of information. But not all on the home page, please, say design experts, who offer some dos and don’ts.
• Mexico’s mall boom
• Mexico is seeing a flurry of mall development (as many as 70 are currently under construction, according to some estimates), thanks to a growing middle class and easier access to commercial and consumer financing.
• Latin America’s confident Congress
• Delegates from every country in Latin America attended October’s International Congress of Shopping Centers, in Buenos Aires, and they reported they’re busier than ever.
• The lure of Manhattan
• It’s hard and expensive to find sites in Manhattan, but worth the struggle, say some developers and retailers who are succeeding after years of struggle.
• Philippines out front
• Many who seek examples of the latest in mall and lifestyle center design go to the U.S. But they might equally consider the Philippines.
• REITs reign
• Some landlords have switched places in this year’s ICSC ranking of the biggest North American landlords.
• Selling Christmas at the mall
• Christmas marketing campaigns once entailed putting up a tree and hiring a Santa. Oh, that it were still that simple.
• Development in brief

• DEPARTMENTS
• By the Numbers
• The figures shaping the destinies of retailers and shoppers
• The Common Area
• Malls cheer up for the holidays, a developer does his part for organ donation, and more
• Retailing Today
• Small isn’t just beautiful, it can be successful too, as some growing independent retail chains are reminding everyone.
• Filene’s Basement has gone upscale — though it promises to preserve some of the shabby chic at its famous Boston flagship.
• Steven Foster, founder of the Jillian’s entertainment concept, is expanding his Lucky Strike bowling concept.
• Customers expect informed assistance when they are in upscale apparel stores, so why not in supermarkets too? Why not indeed, says upscale grocery chain Sweetbay.
• When Wal-Mart began discounting drugs this past fall, some predicted it would turn the prescription drug retail business upside down. Will it?
• Cocoa Beach, Fla.’s famous Ron Jon Surf Shop is one of a kind — even though there are now seven of them across the U.S. and in Canada.
• You shouldn’t have to be rich to enjoy a spa, say the people who are bringing InSpa to shopping centers in the Pacific Northwest and the West.
• Timberland made its name with its boots, but it is relying on some fancier footwork for its future growth.
• Upscale clothier J. McLaughlin is a chain, but that’s the last thing it wants its customers to think.
• When pricey cosmetics and creams become hard to find, what’s a woman to do? One woman started her own chain, Bluemercury.
• Custo Barcelona, an upscale apparel line from Spain, is poised to open more stores in the U.S.
• Sam Moon is a Texas original.
• News Makers
• David Zoba says he has seen too much of what he calls sameness in retail development. His new post, at the innovative town center development firm Steiner & Associates, should cure that.
• News Makers in brief
• ICSC News
• The first Albert Sussman Humanitarian Award went to Johnna Van Deurzena, of the Fox River Mall in Appleton, Wis., for an event honoring nearly 650 local National Guard members on their way to Iraq.
• The Bottom Line
• Shadow-anchored centers are popular among investors, and lenders are asking borrowers for proof of insurance.

WALLY WOODBURY DIES AT AGE 81

Wallace (Wally) Woodbury, president and chairman of the Woodbury Corp., died in September at the age of 81 in his home town of Salt Lake City. An attorney and developer, Woodbury is credited with helping put Utah on the retail map, bringing the first McDonald’s franchise to the state and developing University Mall, in Orem. He also made invaluable contributions government relations,” said Betsy Laird, ICSC’s vice president of federal government relations. “He received the ICSC Trustees’ Distinguished Service Award in 1990, in part because he was the ‘acknowledged industry expert without peer on matters of taxation.’”

In the aftermath of the 1986 Tax Act, Woodbury visited Washington numerous times to represent ICSC and vigorously oppose the passive- loss provisions of the Act, Laird says. “Not only did his tax expertise make him invaluable to shaping ICSC tax policy in the 1980s and 1990s, he was tremendously respected as the author of the provisions in the bankruptcy code that were critical to helping shopping center developers,” she added.

One former colleague remembered Woodbury as “one of the most patient and best teachers I ever had — he took time to explain, in detail, the most minute provision or situation and its impact on shopping center development in terms that only someone with decades of experience could do.” A graduate of the University of Utah and George Washington University, Woodbury practiced law and developed real estate for 57 years. He took over management of the Woodbury Corp. in 1957 from his father. His eldest son, W. Richards (Rick) Woodbury, took the helm of the corporation in the mid-1970s.