Kimco Realty, a major shopping center operator, is experiencing record-low vacancy rates driven by a strategic shift toward service-oriented businesses, according to company executives. While traditional grocery anchors like Whole Foods, Trader Joe’s, and TJX stores continue to form the “sweet spot” of their retail strategy, over 80% of new deal flow now comes from service providers such as urgent care facilities—businesses that executives describe as “e-commerce resistant” due to their inherently in-person nature.
In a bold move to maximize property values, Kimco has identified its vast parking lots—which constitute approximately 80% of their shopping centers’ footprint—as prime real estate for future development. Company leadership anticipates that emerging technologies like driverless cars and robo taxis will eventually reduce municipal parking requirements, unlocking these underutilized spaces for more profitable ventures.
The company has already secured entitlements for 12,000 apartment units to be constructed on these parking areas, signaling a significant pivot toward mixed-use development. This approach creates what executives call a mutually beneficial relationship where “retail enhances the apartments, apartments [enhance retail],” positioning Kimco to adapt to changing consumer preferences while diversifying its real estate portfolio beyond traditional retail spaces.
Source: CNBC
