Sperity Real Estate Ventures

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Just Closed A Restaurant? 3 Problems You May Need to Address Before You Lease Again

If you just closed your restaurant and are looking to lease it again, it is important to be aware of potential problems that you may need to address first. Indeed, in real estate, knowledge is power. You may encounter problems, such as pests, lingering odors, and safety or health issues. These problems need to be addressed sooner rather than later before you can even think about leasing your restaurant space again.

Pests

Unfortunately, it is common to encounter pests after closing a restaurant. It’s important to address these problems because they can introduce dirt and disease to your property. When addressing this problem, be sure to clean thoroughly with disinfecting chemicals. Close all openings around wiring, vents, and drain pipes to ensure that bugs cannot return and bother the new renters. In addition to bugs and rats, other vermin might seek out food from the now-closed restaurant space. You can set up snap and sticky traps for rats and mice. If bugs and vermin continue to be a problem, calling an exterminator is a good course of action.

Lingering Odors

In addition to pests, it’s not out of the ordinary to encounter lingering odors after closing a restaurant. These odors can be unpleasant and unappealing for new renters, so they must be fixed before the property can be rented out again. Grease and burnt food are typical culprits of lingering odors. Vinegar, baking soda, and odor-removing cleaning agents are a few ways you can remove these odors. There are multiple odor elimination methods to choose from, so consider your circumstances and needs when selecting which method is right for you.

Damage, Safety, or Health Issues

There can be any number of circumstances which would cause a previous restaurant space to present safety or health issues or have internal damage. Before leasing the space again, it is essential to repair any structural damage to the property. It’s also essential to verify that all carbon monoxide and smoke detectors work, and that there are at least two forms of exit from the unit. Make sure to check for mold and lead-based paint hazards presented by old buildings.

Taking the time to check your property for pests, lingering odors, damage, safety, and health issues will allow you to eliminate unpleasant surprises. Taking care of these issues will help your leasing process to happen more smoothly, and ensure happy future tenants.

Need commercial real estate advice? Contact us today and we’ll be happy to help!

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How to Make a Commercial Property Presentable Before Listing It

Sperity For Lease sign

Commercial properties come in all shapes and sizes. They can be the size of a warehouse, or a small shop in a mall. Regardless of its size and purpose, there are a few key things that you can do to make your property stand out and justify a higher list price. To get going on your preparations, start with these three tips.

New Paint

Nothing makes a place feel rundown and depressing like peeling, chipped, or dirty paint. If this is the current state of your property, you should consider giving it a new paint job before listing. The new paint will give your property a much newer feel. Even if the paint is still in good condition you might want to paint it anyway.

By painting the walls white, you can help make the property seem bigger and give it the feeling of a blank canvas. This will make it much easier for potential buyers to imagine how their color schemes will fit in the room. There are a few ways you can paint your property while sticking to a tight budget. Since the paint is only temporary, you can use lower quality paint. If you choose to leave the paint as it is, you could just focus on touching up certain areas.

Kitchen and Bathroom Upgrades

Kitchens and bathrooms are key selling points, so these should be up-to-date. If you rent your property to businesses, these can make a huge impact on the business’s productivity. A nice kitchen/kitchenette makes a great break room for employees. A poor-quality bathroom will leave a poor impression on visiting customers. No matter who your potential buyers/renters are, they will be impressed if these rooms are in good condition.

Simple Furnishing

Depending on the type of commercial property, staging an empty location can be a big mistake. It makes the place look bare and boring. Consider putting in some simple furnishings to brighten the place up. You shouldn’t spend a lot of money on this. The furnishing is just for show, so it can be cheap, yet stylish. Try to anticipate your tenants’ preferred use for the property and design your furnishing accordingly.

These preparations may take some time and cost you a bit of money. But they will allow you to get the property sold or rented more quickly and at a far better price. Just be sure to plan out your actions well and keep careful track of your expenses.

If you’re planning to list your commercial property, we can help to connect you with buyers. Reach out to us to learn more about how we can assist you!

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From Stitches to Riches

TSI Promotionals may have a history that starts with printing services, but when owner Doug Mays took over, the company expanded into new product lines and grew its profits five-fold.
What’s the secret sauce? According to Doug, it’s diversifying products and services for changing times. As a byproduct of that success, Sperity recently helped him secure a new space.
Doug took over Superior Printing after his father-in-law passed in 2011. With an original focus on print materials and stationary, he saw the need for change and potential for growth. In 2015, he purchased Timeless Stitches, Inc. (that’s TSI for short) and expanded services to include embroidery and screen printing.
Today, TSI Promotionals is a one-stop shop for branded products with all design, printing, and embroidering or screen printing completed in house — nothing is outsourced. They help businesses better market their services though decorated apparel and design and also partner with schools to produce spirit wear and athletic gear. From large corporations that already have a logo, to small startups, who come in with just an idea, TSI Promotionals provides a crucial resource for marketing businesses.
With Sperity’s help, the company recently purchased a building to expand its production capabilities. Originally leasing retail space, TSI Promotionals had to cram bulky equipment into its showroom. Now, with a proper production facility dedicated to equipment, the showroom feels like a retail space where clients can check out products in person. The new space also brings the ability to fulfill larger orders and provide faster turnaround.
Doug is also pleased with the warehouse’s new location. Before, he had occasional walk-in customers, but they tended to be much smaller orders. Now in an industrial park, many of his clients are nearby. “We are much more accessible,” Doug said. The move brings them closer to current clients including Hanover County Schools which uses TSI for its athletic and spiritwear.
We brought several buildings to TSI’s attention, but didn’t rest until we turned over every stone and found the perfect spot. With our methods in finding commercial space, Doug felt confident that Sperity had his best interests at heart.
We tackled another challenge and secured a new tenant to take over the long-term lease on Doug’s previous space. Sperity also secured an extension for his new building’s current tenant to give Doug peace of mind and income to apply towards his mortgage.
“Instead of finding a big ticket location, Sperity listened to my needs and found what I was looking for. I was never waiting on them for anything. They handled both parts of the transaction, which was incredible,” Doug said. “I was able to sit back and let them run with it.”
Doug sees the future of screen printing and embroidery as fast growing, with more companies moving to casual wear and logo apparel and away from suits and ties.
With the new workspace and an increase in production, TSI has a bright future ahead.
Learn more about TSI Promotionals on their website

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Redevelopment plans for Carytown get nod from Museum District

The redevelopment of the old Verizon building at 10 N. Nansemond Street has been hotly debated and contested. (see: the official site for the Carytown Place; Don’t Big Box Carytown‘s website; & this post and the accompanying comment thread on Caramelized Opinions for a good summary & feel of the debate)

The Museum District Association had originally ruled to oppose the redevelopment based on the original plans, but Friday they sent out a press release announcing the reversal of that position.  The gist of the situation can be summed up from this one paragraph in the press release:

The Board voted 13-1 in November to oppose the original SUP and subsequently provided the applicant with detailed requests for further changes to make it more amenable to the neighborhood. The applicant responded by altering the SUP to remove vehicular ingress/egress on Nansemond Street as well as reduce the number of available uses of the property to 10 uses. The applicant also agreed to limit the usable floor space of any one tenant to no more than 25,000 square feet, ensuring there would be multiple tenants in the building and ruling out a single, larger “big box” tenant.

The whole press release can be read here on the MDA’s website (right now it’s at the top, but it will shift down the page as new releases are issued).

What do you think? Are you satisfied with the MDA’s ruling, or are the changes in the plan not enough for you? In that case, what changes would be enough to get your support for the development?

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Retail Real Estate Market: 2010 vs. 2011

Retail real estate has gone through a lot over the past year and will continue to evolve over the upcoming year.  I can say from anecdotal experience in our office and from what I’ve heard from other colleagues in the business that the last half of 2010 was very busy, with the level of activity only set to increase going forward.

Retail Traffic is a great resource for information on the retail real estate market and I always enjoy seeing a new issue come out.  If you don’t want to miss anything, I would suggest you watch it closely too.  Of course, if I see anything particularly interesting, I will be sure to pass it along here.  For example…..

Their “Retail Real Estate’s 2010 in Review” is a comprehensive review of the biggest stories in retail real estate over the course of the past year.

And even more important, “What Will 2011 Bring?” (which links to a few other very informative pieces)

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Important! New IRS requirements for all landlords

PaperworkAnyone receiving rental payments from either residential or commercial properties will need to review the newly-enacted small business legislation called HR5297 with their accountant and how it expands 1099 reporting requirements.

Currently, only real estate professionals that engage in property management services have to use 1099 forms to report any service provider that they pay more than $600 in a given tax year.

The changes will be enacted over the next two years as follows (details from the NAR Issue Brief released recently — can be found online here or hosted on my site here):

2011 Rule: ALL persons who receive rental payments must provide Form 1099. This affects ALL owners (both individuals and businesses) of rental properties, both residential and commercial. Thus, “mom and pop” investors and those who invest in real estate for their personal portfolios are subject to the new reporting requirement. Only aggregate annual payments of $600 or more for services (but not goods) must be reported.
2012 Rule: All businesses, including real estate businesses, self-employed individuals and independent contractors will be required to make a 1099 report of any aggregate annual payment of $600 or more to any person from whom they acquired goods and services.

Please keep in mind that I am not an accountant, so before you act on any of this information (or panic. or dismiss.) please consult with your accounting/tax professional.  But when I saw this come across my desk, I thought it was important that you are aware of these new rules!

(*Warning! Sales pitch!*) And, by the way, here at Bandazian & Holden, we have dealt with these reporting requirements from when they were first enacted for real estate professionals in the property management field, and we are accustomed to handling the necessary paperwork for our clients.  If you don’t feel like dealing with it on your own, let me know and come on board with us. (*End of warning. Enjoy your day!*)

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Should I wait to sign a lease, or is this as good as it gets?

Fear is a strong motivator, but so is hope.  They’re especially strong when they come together.  It’s a special moment when we’ve made it through an especially bad economic downturn and your business starts to tick upwards for the first time.

Commercial landlords have been through that hard time right along with every other business owner, and they are ready to see that uptick themselves.  They are ready to deal to get in good steady tenants.  At the same time, businesses are seeing new contracts come in (I know we have!) and they are ready to start taking advantage of the deals on leases — are you?

empty salon space

2217-2219 W Main Street

I’m certainly not the first to point this out, and I’m taking my cue from a recent online article on National Real Estate Investor — “Office Tenants and Landlords Battle for Upper Hand”

Landlord concession packages are not likely to get any bigger… “They’re as good as they’re going to get.” The same may be true with rents, he adds. “Rents may fall in some markets a bit further, but the ship starts to turn before a lot of people know they’re on it.”

Robert Bach, senior vice president and chief economist at Grubb & Ellis, agrees. “More tenants are active now and willing to sign a long-term lease because they are more confident in their own outlook and realize now is a good time because of the concessions available.”

They’re talking about office leases in the article, but it makes just as much sense with retail and restaurant spaces, too.

Of course you never know when the economy has hit bottom until it’s too late to take advantage of the best deals.  The great part is that as long as you’re not making decisions out of fear, you can keep your eye on your own business and use cues from your business activity help you decide when is the best time to move.

So if you’re seeing cues that things are getting better in your business, perhaps it’s time we talk about finding a good deal now…?

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Tips on leasing commercial space

If you’re looking for commercial space for your business, or think that you might ever be looking — read this article from Entrepreneur Magazine, “How to Negotiate a Lease“. It has lots of great information on what to expect and how the process works for finding a commercial space to lease. [please ignore all of the obnoxious advertising that Entrepreneur Magazine is so horrible about, the article is worth suffering through the ads]

Be educated about the process and do your homework, but don’t let your ego get in the way and think that you can do this on your own. As the article mentions, be sure to use a commercial broker to find and negotiate the space with you, and use an attorney to review the lease documents.

There are things that you won’t know that you’re missing, no matter how savvy of a tenant you are — and those things that you missed will become painfully obvious the moment you reference your lease regarding a contentious issue 2 years from now, or the moment you hear about the space that wasn’t officially “on the market” but was half the price and better positioned than the space you chose.

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Today’s Grand Opening at White Oak Village (pictures, too!)

Today was the big day for the Shops at White Oak Village!  The
eagerly anticipated shopping center was formally introduced to the
community this morning, and while the line of speakers patting each
other on the back for a job well done was the agenda for the event (and
well deserved!), the important news is that this is not your typical
shopping center.

Every developer says that their shopping center
is unique, but this time it was proven.  Not only was the environment
taken highly into consideration in the construction and build-out, but
the way the traffic is controlled and the landscaping is done lends to
a very pedestrian-friendly environment.

Then again, this is the
same developer that did Short Pump Town Center and that was a new style
for the area, too.  I have to say that it is refreshing to see that
there are developers doing such high quality work and not just churning
out the same strip mall over and over again.

GrandOpening_WhiteOak
Entrance_WhiteOak PededstrianFriendly_WhiteOak
OneSide_WhiteOak
Main_WhiteOak

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UPDATE #4: White Oak Village

Lately I have seen a flood of inquiries for information on the newest addition of shops in the East End of Richmond — The Shops at White Oak Village.  From all of the internet traffic, it is easy to believe that this shopping center will be a huge hit.

With the GRAND OPENING occurring this Monday, October 13, it is an appropriate time to revisit the project and see how everything stands for the public unveiling.  All of the shops that were revealed in the previous post (3/27/08) have been confirmed, plus quite a few more.  Take a look at this page of the official website for the directory of shops.

Several comments from the previous post called for a fitness center, a Chipotle, and a movie theater.  Unfortunately, it doesn't seem as though any of those are on board yet — except that there is a Qdoba scheduled to open right away!

There is a grand opening event on Monday that I will be attending, so I will be sure to report back with my impression of the overall project and see if I can bend the ear of an insider to find out about any other hot pieces of info to share! 

Be sure to check back next week for the update, or just subscribe using your feed reader or by typing your email address in the "subscribe" box under my picture along the left hand side of this window (be sure to confirm your address when the service sends you their email).  If there is anything else you would like for me to find out, leave a comment and I'll see what I can do!

(In the meantime, take a look back through the other updates for this project on this blog:  5/15/07 and 6/15/06)

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UPDATE: The Shops at White Oak Village

Since there have been so many inquiries to my blog regarding The Shops at White Oak Village (see previous entries on the subject from 5/15/07 and 6/15/06), I thought it was time for an update.  Considering the time between each posting on the shopping center development, maybe I should consider labeling this as an annual update…

Now there is an official website for the project, and there are confirmed tenants listed:

Here's a factoid that I knew but had forgotten — the developer for The Shops at White Oak Village is the same developer that put together Short Pump Town Center and River Lofts at Tobacco Row, Forest City Enterprises.  Of course, given the confirmed tenant mix so far, White Oak will be a very different shopping center than Short Pump is.  That doesn't mean it won't be a good mix, just that it will be different — hopefully different in the way that reflects the needs and wants of the surrounding demographics.

It looks as though the project is still on target for a grand opening in Fall 2008, but we'll keep an eye out for any updates to that — and maybe another update before a full year passes…

[EDIT (10/13/08): Click here for the latest update on the Shops at White Oak Village.]

[EDIT (10/31/08): Click here for pictures and a post about the grand opening today!]

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Latest Plans for the Boulevard

A short but very interesting article in this morning’s RTD discusses the redevelopment plans for the area around the Diamond on Boulevard.  The focus of the article was more on the deadline yesterday for developers to submit their bids on the project, but I found the details of the City’s plans for the area to be more interesting than the names of the developers

(Although, it is interesting that Douglas Development Corp. has bid on the project.  That’s the firm owned by Douglas Jemal.  They are firmly entrenched in DC and Maryland, and have been buying up properties downtown over the past couple of years.)

Per the advertised qualifications for the bids, the City has outlined their vision of the redevelopment:

  • a new 8,000-seat baseball stadium closer to I-95 — When I first read that,  I couldn’t imagine it being very much closer than the Diamond is now, but it could be moved back towards the I-95 South entrance ramp.
  • redevelopment of the Virginia Alcoholic Beverage Control headquarters, perhaps to include the relocation of the Richmond Coliseum to this site
  • demolish the Diamond, using the 27-acre site for a mixed-use development
  • demolish the city maintenance complex, resulting in another 27-acre site for redevelopment
  • build a parking deck beside the Arthur Ashe Center

It will be interesting to see it all move forward, and to see the renderings that the chosen developer presents.  If anyone has further insight on the project, I would love to hear more!

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Chesterfield Town Center gets facelift

The former movie-theater at Chesterfield Town Center is finally being redone, with the move of Barnes & Noble from across the street, the opening of a new Red Robin Gourmet Burgers, and a brand new Coldwater Creek retail store.  In addition, the mall’s owners will be updating the front of the mall that faces Huguenot Road.

(see "Renovation for Chesterfield mall" from the RTD for the source story)

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Cinemas, Cinemas….Everywhere!

There’s a recent growth spurt in the cinema sector here in Richmond lately, or at least in the plans for new cinemas.  In today’s RTD, “Lease signed for cineplex” lays out the plans for Regal Cinemas to open a 16-screen digital theater complex at Westchester Commons, at the intersection of 288 and Midlothian Turnpike.

As I’m counting (and I may be missing a theater or two, please chime in if you know of one that I’ve missed!), that makes four either announced or opened within the past year.

The others that I know are:

And of course, each of these cineplexes have the accompanying retail and sometimes residential component coming along with them.

In the case of the Westchester Commons theater, it is part of a much larger development being developed by Zaremba Group, Watkins Center, which will contain more than a million SF of retail space, 1,600 residential units, and 2 million SF of office space (per Zaremba’s website).  The entire development is scheduled to be open for business in spring of 2009.  Here are the plans for Westchester Commons, as supplied by Zaremba Group.

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UPDATE: New Shopping Center in East Henrico

More information has been released and has been reported by the RTD regarding the plans for The Shops at White Oak Village.  With all of the comparisons to local area shopping malls, I thought this was going to be a "lifestyle center" like Stony Point Fashion Park or Short Pump Town Center.

The article in the RTD ("Sam’s, Penney plan new stores") from this past Friday, however, highlighted a number of the stores going into the shopping center planned to open in latter part of 2008 near the Laburnum Avenue exit off of I-64 (the one in the East End, not Northside).  These are not your typical "mall" stores, but more like one of these big box strip centers (a la the strip centers that pop up around the big shopping malls).

Target, Lowe’s, Ukrop’s, Sam’s Club, and J.C. Peney have all been confirmed as new tenants.  The site is 136 acres, and is planned to house a total of 913,606 square feet of retail, as well as a 150-room hotel.  Other possible tenants (not confirmed) are Red Lobster, Circuit City, Panera Bread and Ruby Tuesday.

June 2007 is the expected start date for construction.

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UPDATE: “Chippenham Place” (Cloverleaf Mall)

Last week, the Chesterfield County Board of Supervisors approved Crosland’s initial plans for the redevelopment of Cloverleaf Mall.  The plans include at least 500 residential units and 200,000 SF of commercial space.

From an older report, the outparcels that have been consistently active will remain, and Kroger has signed on to build out their largest store yet in the Richmond-metro area.

This certainly sounds like it is moving along nicely, and it will help the area turn around after years of decline.

For a more thorough report of the announcement, read "Cloverleaf’s Newest ‘Place’" on Richmond.com.  Here is a clip from that article that I found gives us some insight on the timeframe we are looking at for the redevelopment:

“It’s not
unrealistic for a project of this size to be absorbed over a period of
four years perhaps even until build out,” [James Downs, vice president for Crosland’s retail division] said. “The commercial
component, however, we see moving forward immediately.”

(For previous posts about this topic, see Something’s Moving at Cloverleaf Mall on 12-28-06)

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Something’s Moving at Cloverleaf Mall

This bit of news slipped by me when it hit the RTD a couple of weeks ago, but thanks to the Chamber of Commerce pointing it out I’m all up to date! 

After a long period of silence about the status of Cloverleaf Mall, there is movement.  In January, Chesterfield County officials expect to have a signed purchase agreement from Crosland Inc., who will be redeveloping the site.  The buyers have been involved since May 2006, and have several versions of a proposal that calls for redeveloping the aged mall into a mixed-use development.

Several plans have been proposed since Chesterfield purchased the property in 2004, all of which include a "pedestrian-friendly community that blends residential and business components".  The county has said that it will be subsidizing the redevelopment, in order to make it work.

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Effects of VA Sales Tax Holiday

The sales tax holiday here in Virginia had a great turnout this past weekend.

For those of you who don’t know, an annual sales tax holiday was approved by the General Assembly to begin in 2006, being held on the first full weekend in August.  Only certain items are exempt from the sales tax (per the Virginia Department of Taxation website):

During Virginia’s Sales Tax Holiday, purchases of school supplies selling for $20 or less per item, and articles of clothing, including footwear, selling for $100 or less per item, will be exempt from sales tax. All retailers selling these items MUST participate in the Sales Tax Holiday. Sales tax exemptions do not apply to items selling for more than the amounts listed.

For items that are not exempted, retailers had the option to pay the sales tax themselves.  Many local retailers exercised this option, and used it for a great promotion.

Of course, everyone loves saving money.  This weekend (the sales tax holiday ran all day Friday, through midnight on Sunday) proved to be very successful for area retailers.  It looked like Christmas-time in the shopping mall parking lots.

The Richmond Times-Distpatch reported that Wal-mart benefitted quite a bit, with the "sales of boys and girls apparel…[rising] more than 200 percent at Richmond-area stores".

It’s good to hear that the super discount retailer did well, but I was really more interested to hear how the independent retailers fared.  From reports from the Retail Merchants Association, they did well, too: "31 percent of the retailers surveyed said their sales jumped 30 percent or more."

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Shopping Centers: New Non-traditional Anchors

Shopping centers are relying less and less on traditional anchors, such as department stores.  The latest trend is to use restaurants, grocery stores, and movie theaters.

We have seen the popularity of the open-air malls, such as Short Pump Town Center and Stony Point Fashion Park.  The traditional malls have taken hits not only from these new formats, but also from discount super-retailers like Walmart and Target.

Shopping habits have changed, undeniably.

The Washington Post this past Sunday had an article that went into this issue in depth.  Here is an excerpt that I thought was particularly insightful:

Restaurant-anchored developments may also attract wealthier shoppers. According to a survey by the National Retail Federation, people who ate at full-service restaurants four or more times per month were more likely than the average adult to shop at department and specialty stores and less likely to shop at discount stores. Their average income was $65,483, compared with an overall average of $52,300 for those surveyed.

Traditional malls, meanwhile, are grappling with tepid department-store sales and closings. According to the International Council of Shopping Centers, same-store sales at department stores were up just 1 percent in February, the last month for which data were available.

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College Areas Good for Investing

While students are the not always the best tenants, there are lots of good reasons to buy investment properties in college areas.


College enrollments expected to rise by almost 1.6 million students, or
15 percent, over the next 10 years, according to the U.S. Department of
Education, and the number of graduate and professional students is
growing even faster, at almost 25 percent.

With the increase in students, there will of course be a rise in professors, administrative staff, space needed by the colleges, and supporting industries (research, retail, restaurants, etc.).  While the article at REALTOR� Magazine Online -Daily News- College Town Properties Are a Smart Buy focussed on small college-dominated towns, this is a very good sign for Richmond.  With Randolph Macon, VCU, UR, VUU, and the community colleges here, the areas around each of these schools will feel the impact.

Now is the time to jump in and start investing for the future growth, especially since the market has slowed down just a bit.

[Source: Dow Jones Business News, Jennifer Openshaw (07/04/2006), cited in the article mentioned above]

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TimesDispatch.com | White Oak: Short Pump East?

Link: TimesDispatch.com | White Oak: Short Pump East?.
White Oak: Short Pump East?
Richmond Times-Dispatch
Jun 15, 2006

LOCAL NEWS: Henrico County

The Henrico County Planning Commission is scheduled to decide tonight whether to recommend rezoning for a proposed shopping complex in eastern Henrico that would be nearly the size of Short Pump Town Center.

The meeting starts at 7 p.m. at the county administration building, 4301 E. Parham Road. The public is invited to speak on the case before the vote.

Cleveland-based Forest City Enterprises Inc., the developer of Short Pump Town Center, proposes to build the 950,000-square-foot White Oak Village complex on 136 acres along Laburnum Avenue just south of Interstate 64.

It is the site of the former Viasystems Technologies Corp. plant, which closed in 2001. Forest City plans to raze the plant.

By comparison, Short Pump Town Center is about 1.1 million square feet. The total square footage of White Oak Village would be slightly less than that of Virginia Center Commons but more than that of Regency Square mall.
Click here for great deals from Dell!

Once the Planning Commission either recommends approval or denial, the rezoning case then moves to the county Board of Supervisors for the decisive vote.

For full coverage, see tomorrow’s Times-Dispatch.

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The “New & Improved” J.C. Penney

T1_jcp_logoAs reported by the NREI (National Real Estate Investor), J.C. Penney has initiated a national drive to renovate existing stores and build new, free-standing stores as a way to increase earnings.

J.C. Penney is launching a major store upgrade program, based on the
strong performance of a new prototype. The 1,019-store chain plans to
spend $1 billion renovating 250 existing stores and constructing more
than 170 new ones by 2009, using a new, flexible “Box One” layout
formula. Company officials say 90% of the new stores will be off-mall.

…

On the renovation side, J.C. Penney is making over 50 stores this year and ramping up to 65 or 70 a year through 2009.

…

The new off-mall stores will be 80,000 sq. ft or 100,000 sq. ft., a
format the Plano, Texas-based retailer introduced with three stores in
2003 and fine-tuned at four larger stores opened in 2004. Using a
design strategy dubbed Box One, the combination of décor, aisle
spacing, adjacencies of departments within the store and other layout
factors is adaptable to a number of store sizes and will be used in
renovations and new construction alike.

With the outline from J.C. Penney, the Richmond market should not expect to see a "Box One" store anytime in the near future.  The renovation of the 4 stores in the area (Regency Square, Chesterfield Town Center, Virginia Center Commons, and Southpark Mall) are much more likely, even if it will be a few years in the future before they are slated.

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