July 14, 2009

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State of the Local Economy
Fairwood Square Showing Good Health
in Challenging Economy

Despite the challenges of the retail industry, the Fairwood Square Shopping Center shows some positive economic activity.

With 20 storefronts in this local shopping center, occupancy is at 90 percent, an impressive number in such a challenging economic environment. Just two available spots remain at the center, and according to Cascade Commercial's agent John Booth, they have seen some activity and are showing the vacant spaces to prospective clients.

Challenged by the growing popularity of online video rentals and the growth of Netflix's business model, Blockbuster Video has seen more than its share of hard times. Currently, the Fairwood Blockbuster is on a month-to-month arrangement, and if a new tenant is secured, they would vacate the space within three months.

The Blockbuster space is 3,375 SF, located right next door to anchor store Albertsons.

The other vacant space could provide a tenant with an added sense of security. Located next to the Fairwood King County Sheriff's office, this 1,000 SF space was previously leased by a beauty supply retailer. The space has been vacant for quite some time.

Albertsons Remodel Signals Long-Term Commitment

With the QFC closure, discussions among Fairwood citizens have centered on Albertsons' need to remodel in order to compete against the newly-remodeled Safeway across the street. Apparently Albertsons' corporate also agreed a facelift was needed and already had plans prior to QFC's departure.

When Albertsons merged with Supervalue in June 2006, the new corporate group committed to an aggressive remodel plan for its Albertsons stores.

"By the time QFC had announced it would close, our remodel was already on the books," said Assistant Store Director Steve Greely.

Greely also noted that the remodel reinforces Albertsons' commitment to staying in the area. "We're definitely here to stay. Fairwood is a great area; the customer base is good, down-to-earth people," said Greely.

SD Deacon is the general contractor for the remodel, and according to Superintendent Ron Tabish, the 14-week job will be completed ahead of schedule by two weeks, with the project scheduled to be substantially complete on July 27. The remodel budget is just under $1 million.

The remodel includes new displays and display cases, better layouts for improved shopping flows, new interior and exterior paint, new flooring and new HVAC units. "We've heard that the landlord is going to restripe the parking lot, and new landscaping is being done, too," said Tabish.

The marketing focus of the remodel is centered on conveying a "premium fresh image," according to Greely. "We're focused less on canned goods and moving to an emphasis on meat, deli, and we have an expanded organic section," said Greely.

Albertsons has been the anchor in Fairwood Square since the shopping center was built in 1988, and the newest remodel has infused a greater level of confidence that traffic will increase for the smaller businesses in this center.

"With the Albertsons remodel, confidence is positive," said Booth.

Two New Tenants

Two of Fairwood Square's newest tenants include a Thai restaurant, replacing the Quizno's Subs space, and Little Caesar's Pizza, replacing Can Am Pizza.

Thai Destination is the second Thai restaurant making its home in the Fairwood shopping core, and Little Caesar's is the fourth pizza restaurant for the area. This specific space has a long history of pizza vendors, including a previous stint with Little Caesar's, then Can Am and now again Little Caesar's.

Can Am's departure was somewhat of a surprise, closing its doors on June 27. The space had barely taken a breath as construction crews are already working to open the new chain.