WET IS THE NEW DRY: Kimco dry cleaning tenant Plaza Cleaners converted from perc to wet cleaning

I recently wrote about Kimco’s initiative to help dry cleaners replace their perc systems with environmentally safe alternatives. Our goal is to help our tenants eliminate the environmental, financial, and regulatory risk regarding the use of perc, and improve the safety of the environments in which we operate.

But what happens when the rubber meets the road? What’s it like for dry cleaners to actually go through the conversion process? Is it time-intensive? It is costly? How does it impact their business during and after the conversion?

We asked Simon Zekiyan, owner of Plaza Cleaners, about just that, and for good reason. He’s one of Kimco’s first dry cleaning tenants to replace his perc system with wet cleaning, one of our environmentally safe, Kimco-approved alternatives. The wet cleaning process uses biodegradable, nonhazardous detergents and conditioners, and all waste is safely disposed of down the drain.

Janelle from our blogging team spoke with Simon recently about his wet cleaning conversion experience at his location in Kimco’s Plaza Di Northridge shopping center in Northridge, Calif. We covered many of the common questions dry cleaners have about converting to wet cleaning and using environmentally safe dry cleaning systems as a whole. We hope it helps answer some your questions, too. Read on for our interview.

Janelle: How long have you been in business at Kimco’s Plaza Di Northridge shopping center?

Simon: I’ve been there for eight years now.

Janelle: When you opened, were you using perc or a green cleaning technology?

Simon: I was using hydrocarbon.

Janelle: So did you eventually convert to a new cleaning technology?

Simon: Yes, we converted to wet cleaning.

Janelle: What is wet cleaning?

Simon: We use biodegradable soaps and water. We have special machines that are very gentle on the clothes, so there’s no shrinkage or any fading.

Janelle: How does the technology work, exactly? Can you tell us more about the process?

Simon: Well, there’s a high-end washing machine where you put in the clothes. Water combines with the soaps, which prevent clothes from deforming. The machine turns slowly, so there’s no agitation. After the cleaning cycle, we take the garments out of the machine and dry them in a sensor dryer that controls the moisture level. Then we put the garments on tension units to bring them back to their original shape. Lastly, the garments go to press.

Janelle: Why did you decide to convert to wet cleaning?

Simon: Kimco wanted us to change our machines because of the concerns about perc. So we thought, what can we do? We looked into wet cleaning and it’s worked out great.

Janelle: When did you begin the conversion?

Simon: Four years ago.

Janelle: And was that when your lease was up for renewal?

Simon: Yes.

Janelle: So what was the conversion process like? Tell us about the steps involved, the people involved.

Simon: It was fairly easy. I had to provide some information to Kimco about what my soaps have in them. They looked into a few soaps and decided there was one in particular that was really 100 percent biodegradable, so they told me I could use that soap. So it was fairly easy.

Janelle: What is the name of the soap you’re using?

Simon: I use SMARTCare by Kleerwite.

Janelle: Did you also have to get some new equipment, too?

Simon: Yes, I did. I have a Wascomat cleaning machine where I can do 40 pounds of dry cleaning items. And I have a 75-pound dryer which does 65 pounds of laundry.

Janelle: How did you go about finding that equipment?

Simon: I had the staff at Kelleher Equipment in Long Beach, Calif., help me with that.

Janelle: How long did the entire conversion process take, from when you decided that you needed to do this conversion to when it was all complete?

Simon: About a month.

Janelle: Why was wet cleaning on your radar? There are a number of other green technologies that Kimco has approved and that are available to use for dry cleaning, so why was wet cleaning the one that you decided to go with?

Simon: There are, but they’re not organic. I wanted to go with soaps and water. When I started this process, wet cleaning wasn’t as well-known or used. Now I see it in our industry more, and the technology is getting better. I think within 10 to 15 years, wet cleaning is going to be the new dry cleaning. They’re already trying to take away perc, and now also hydrocarbons. And by that time, the technology will be even better. There will be more soaps and conditioners we can use.

Janelle: Have you been able to measure the environmental effects of using wet cleaning?

Simon: Yes, I have. I don’t have any disposal of harmful waste anymore and I don’t have any chemical odors in my store, which people do notice. Actually, if my machines aren’t on, people think it’s a [drop off] because there’s no smell in the store.

Janelle: Have you seen an uptick in customers since you have converted to wet cleaning?

Simon: It’s been the same. I mean, I really can’t compare it right now because of the economy. But we do have people who tell us they used to go to other cleaners that say they’re environmentally safe, and their clothes would still come back with the odor. And our garments don’t have any odor on them after the wet cleaning process.

Janelle: Have you realized a return on your investment from doing the conversion, taking into account the new equipment you had to buy and the total cost of undergoing the conversion?

Simon: Yes, due to the fact that there’s lower utilities and there’s no dealing with the Environmental Protection Agency. You have to pay them yearly fees and for permits. I don’t have any permits or any permit fees. So in that sense I do save.

Janelle: How much did you spend to do the conversion?

Simon: Our machine cost around $50,000. But, like I said, that was four years ago and the economy was still good. Now you can get used machines for cheaper.

Janelle: What advice would you give other dry cleaners who are considering undergoing a conversion to wet cleaning to help them have a smooth transition?

Simon: I would say do your research and take a lot of classes and introductions to wet cleaning. And they can always call me. I’m happy to show them what it is, because when I first started, I didn’t believe in it either.

Janelle: Would you recommend other dry cleaners around the country use wet cleaning or other green dry cleaning technologies?

Simon: Of course. I can talk to wet cleaning — the cleaning results are better, because most of the garments that come in to dry cleaners are wet site stains, like coffee and teas. Those come out easily. If there are any cleaners that are concerned with oil or grease stains, they also come out with the degreasers that we use. And the other thing is it’s safer for your customers, your employees, and yourself. So why not?

Janelle: Thank you, Simon, for joining us on Kimco’s blog.

Simon: Sure. No problem.

DEALS ON HEELS: A strappy Yves Saint Laurent heel for sale at Clotheshorse Anonymous

“Hunt. Gather. Recycle.” That’s the motto for designer consignment shop and Kimco tenant Clotheshorse Anonymous, located in Kimco’s Preston Forest Village shopping center in Dallas. The retailer’s maxim reflects the consignment shop boom of recent years, driven by the increasing number of consumers seeking discounted, quality fashions, while also cashing in on their new or gently used clothing.

But Clotheshorse Anonymous put an upscale twist on the consignment shop business by focusing on high-end, designer couture. As a result, fashion-forward, money-smart women are flocking to Clotheshorse Anonymous to “shop and drop” designer clothes, shoes, and accessories. The retailer now has some 25,000 consigners in its fast-growing network.

COUTURE CULTURE: Kimco tenant Clotheshorse Anonymous takes a high-end approach to consignment clothing in Dallas

Much of the retailer’s success can be attributed to its ideal location. Preston Forest Village sits in the prestigious North Dallas area of The Metroplex, which has one of the highest per capita incomes for the area. The center’s location at the corner of Preston Road and Forest Lane has long been known as one of the most dominant intersections in all of Dallas-Fort Worth.

However, location usually isn’t the only element required to creating a high-growth retail business. We wanted to know more about the retailer’s secrets to success. So we grabbed a mic and digital recorder, and interviewed Julie Hogg, who handles PR, social media, and advertising for Clotheshorse Anonymous. Julie revealed some insights into how to carve a new niche in a seemingly tired or commoditized market, and how to keep your business fresh year after year. You can tune in to our podcast here:

Or, use the time code index to click ahead to certain parts.

STYLE SIGHTING: These Armani Exchange eye glasses have a brand new owner!

• 0:43 Overview of Clotheshorse Anonymous

• 1:03 Why the retailer’s founders opened Clotheshorse Anonymous in Dallas, and why they moved the store to Kimco’s shopping center four years ago

• 1:59 Store data points: size, number of employees, demographics of customer base

• 2:40 How Clotheshorse Anonymous’ consignment process works

• 3:40 Types of clothing Clotheshorse Anonymous is looking for to stay on trend

• 4:46 How Clotheshorse Anonymous ensures it’s stocked with clothing and accessories its customers desire

• 5:32 How Clotheshorse Anonymous has shaped its shopping experience around its customers

• 6:26 Local and national events that Clotheshorse Anonymous attends to market its store

• 7:00 How Clotheshorse Anonymous decorates its storefront to draw customers

• 9:19 Clotheshorse Anonymous’ perspectives on the major trends driving the consignment shop business
  

  FASHION FINDER: A Clotheshorse Anonymous shopper spots a designer coat to add to her wardrobe

You can also listen to the podcast on your computer or save it to your MP3 player to listen to it on the go. Just right-click our Clotheshorse Anonymous podcast link, and click “save link as” to save the podcast to your computer.

If you’re more of a reader than a listener, you can read our Clotheshorse Anonymous transcript here.

And lastly, during our interview we mentioned Clotheshorse Anonymous’ Facebook page. We wanted to give you the link so you can see how the retailer is using Facebook to build its fans and promote its business. Also check out the Clotheshorse Anonymous blog and Twitter for a look at its other social media programs.

GAME ON: Long Island scores its first Sport Clips, marked by the Selden location’s grand opening celebration

The lure of franchising for many business owners is that they can start their own business without having to create everything from scratch. Franchisors have already done much of the leg work — not to mention reduced or eliminated many of the risks that come with entrepreneurship — by establishing the business model, building strong brand name recognition, and handling most of the marketing and advertising.

But this does not mean opening and running a franchise location is a shoe-in. The uptake in some markets can be faster and easier than in others. A major factor influencing this is the franchise’s level of presence in the area prior to a new location opening.

A strong presence seeds the market with greater name recognition that franchisees can immediately use to build their business. A weak presence, or total lack of presence, typically leaves franchisees with a blank slate upon which they must create and build.

If you’re considering franchising, it’s worth looking at both scenarios to understand the challenges and opportunities each can present. Today, however, we wanted to tackle the road with more unknowns: What happens when a franchisee opens a location in a brand-new market?

DUDE DO’S: Sport Clips stylists provide just-for-guys haircuts

We turned to Manny Galanis to find out. Manny, along with family members Nick Galanis and Evan Galanis, and friend Tommy Regoukos, opened a Sport Clips location in Kimco’s Independence Plaza shopping center in Selden, N.Y., earlier this year, and held their grand opening celebration in March. For the uninitiated, Sport Clips is a sports-themed hair salon franchise primarily for men and boys. With more than 875 locations in 39 states, Sport Clips is among the fastest growing franchises in America.

Selden is a hamlet in the town of Brookhaven on Long Island, N.Y. It’s a strong sports town, host to a Little League team and many school athletic teams. This was one of the major reasons Sport Clips identified Selden as an ideal town for one of its franchise locations.

But there were no other Sport Clips on Long Island until Manny and team opened their location. Their biggest challenge was having to introduce the concept to the market, gain exposure, and begin to develop a customer base.

What happened next is the topic of our recent interview with Manny. Play our podcast to find out why the business partners decided to open the first Sport Clips franchise location on Long Island, what business challenges they’ve met, and how they’re overcoming them through a focused franchise marketing and advertising plan. You might hear some ideas you’ll want to borrow.

Or, use the time code index to click ahead to certain parts.

• 0:44 About Sport Clips
• 1:07 About the Selden Sport Clips location
• 1:44 What differentiates Sport Clips from other male-targeted hair salons in the Selden area
• 2:20 About the MVP Sport Clips experience
• 2:58 Size of the Selden Sport Clips location
• 3:14 Why the owners wanted to open a Sport Clips franchise location
• 4:47 Why the owners thought there was a need for Sport Clips in Selden
• 5:18 How the Selden Sport Clips grand opening celebration went
• 6:04 The most important way the owners plan to convert Long Islanders to Sport Clips
• 6:50 Marketing and advertising challenges faced when opening the new franchise location
• 7:27 The owners’ marketing and advertising plans to build the Sport Clips brand on Long Island
• 8:28 How the owners are using Little League sponsorships and school athletic team promotions to raise awareness for Sport Clips
• 9:01 How the owners will implement new franchise marketing plans for every sports season

A WINNING COMBINATION: The Sport Clips MVP Experience includes a haircut, scalp massage, steamed towel treatment, and neck and shoulder massage

You can also listen to the podcast on your computer or save it to your mp3 player and listen to it on the go. Right-click our Sport Clips podcast link, and click “save link as” to save the podcast to your computer. You can also read our Sport Clips transcript here.

To follow more of the owners’ marketing plans and promotions, visit the Selden Sport Clips website. You can also see some of Sport Clips’ overall franchise marketing in action on the Sport Clips Twitter and Facebook pages.

Lastly, while we’re on the topic of franchising, you can also find more help for starting your own franchise location through Kimco’s new FastTrack Franchise program. Our FastTrack Franchise blog post and FastTrack Franchise webpage have more details.

It might sound easy enough. But choosing the right location for your business is one of the most challenging and confusing decisions for entrepreneurs to make. Most small business owners realize the obvious: Open your business where your customers live. That said, however, there are several not-so-obvious rules for finding the optimal location for your small business. Here are eight lesser-known factors to consider:

1. Demographics are in the details.

Like I mentioned, most small business owners know their products should suit the needs and demographics of the area’s population. For example, if your boutique sells high-end designer handbags, you should locate your business in an affluent area. However, there are several other considerations beyond this that many small business owners don’t take into account.

One is daily population fluctuations. A restaurant that needs a strong lunch business in addition to its normal dinner business should be located in an area where there are many places of employment, rather than in the middle of a bedroom community.

In addition, know how far customers typically travel to come to the shopping center. Many shopping centers (especially those with a supermarket anchor) pull customers from a one- to three-mile radius. However, shopping centers with a big-box anchor or destination store (Costco, Target, etc.) typically pull customers from much farther.

This is important to understand because the type of business and the products you sell have to mesh with the customers that the shopping center draws. Typically, people will not want to drive more than three miles to get their dry cleaning. So if you locate your dry cleaner next to a Costco, which draws customers from a larger distance, you probably won’t benefit much from their foot traffic.

2. Co-tenancy: Who’s your neighbor?

Look for a shopping center with a tenant mix that attracts customers similar to yours, and that complements your business. Place extra weight on whom the anchor tenants draw, because these businesses typically pull in the majority of the center’s customer base.

So say you’re a nail salon owner, catering mainly to women who often get manicures while doing other errands. Your business would do well next to businesses where customers take care of daily activities, such as a supermarket and gym. To contrast, a nail salon probably would not perform as well next to a Home Depot, which attracts many contractors who are on the job — usually male — who would not be stopping for a manicure.

In addition, seek co-tenants with similar operating hours as your business. You don’t want to be in a shopping center where most of the tenants close at 6 p.m. while your business is open until 10 p.m., because there will be significantly less traffic in the evening.

3. Keep your eyes on the size.

You should determine as precisely as possible how much square footage you need to support the types of products, fixtures and levels of inventory you need. And I emphasize precision. If the space is too large for your requirements, you will be paying unnecessary rent and utilities on the extra square footage. If it’s too small, you might not have enough room to fixture your store and stock your shelves with the right product mix your customers want.

For instance, a small business owner might only require 15 feet of store frontage. But the owner finds a location with 20 feet of frontage and another with 10 feet, and thinks that will be close enough. But “close enough” doesn’t always work if you have a specific layout you need to accommodate. A typical shop space is 100 feet deep, so an extra five feet of frontage will equate to an extra 500 square feet of space. At $30 per square foot gross (including maintenance and taxes), this extra five feet of frontage will cost you another $15,000 per year, or $1,250 per month.

Alternatively, the loss of five feet from the width of a store can mean the loss of an entire aisle of fixtures, and as a result, possibly hundreds of product SKUs as well. This can reduce foot traffic because the store can’t carry all the products shoppers want and expect to find. Working with an architect and space planner can help you optimize your layout and determine exactly how much space you need for your business.

4. Think inside the rectangle.

Much like space, the shape of the store is also important. Some tenants, say a medical office, can be more flexible with shape than other tenants that might have specific layout requirements. Generally, however, most small business locations are rectangular in shape. This is the case for the majority of the small business locations in Kimco’s portfolio, because they’re situated in neighborhood and community shopping centers.

Most small business owners can’t go wrong by moving into the industry’s average-shaped space — 80 to 100 feet long, and anywhere from 15 to 75 feet wide. This is the sweet spot, because it typically enables owners to use the space well and facilitate good traffic flow. Beware of sites that are too narrow, as this can create issues with fixture spacing (as discussed above).

Another often-overlooked factor is column spacing. This can make or break the layout because the columns will dictate where fixtures can and cannot be placed. A column that’s two or three feet from the side wall, for instance, can get in the way of your fixtures and create dead space. Walk through the site, noting its shape and column spacing. Obtain an architect’s layout to help you plan whether and how your layout requirements would work in the location.

5. Visibility forecast.

Many small business owners think they need to find a location with large signage capability and high street visibility. While visible signage is always a good thing, it is not crucial for all types of businesses. Locations with good street visibility typically have higher rents than the space inside the shopping center, so you want to be sure you need this visibility. To decide what’s right for you, we recommend identifying whether your business offers impulse buys or functions as a destination store.

An impulse business is one in which customers see the shop and decide to go in on a whim. Coffee retailers, fast food restaurants, and some clothing stores are impulse businesses. As a result, impulse tenants should have high visibility from the street, and be located in high-traffic areas so customers can easily swing into the parking lot and get what they want. Seek end caps and outparcels in shopping centers.

Destination tenants, on the other hand, can be located farther back in the shopping center. These businesses are commonly grocery stores, doctors’ offices, professional services offices, and hair salons. They require less street visibility because customers usually already have the businesses on their to-do lists or have appointments to go to them.

6. Parking: lot or little.

Your location should have the right amount of parking you need to support your customer flow. For example, if you have a small residential real estate office or a pack-and-ship store, you won’t need a lot of parking. This is because you probably either have just a few customers at a time, or customers typically spend only 10-15 minutes in your business, quickly opening up the parking spot for the next customer.

Health clubs and sit-down restaurants, on the other hand, typically need a lot more parking. Their customers can spend an hour or more in the space, preventing quick parking turnover for adjacent tenants.

It’s important to have the right amount of parking for your business, but to also be aware of the businesses next to you that will utilize the same parking. A pack-and-ship store will not do well next to a health club because the parking field during certain hours will be full and have little turnover. It’s important to locate next to complementary uses and parking demands.

7. Corral the competition.

Map out your competitors’ locations in the area. Determine how close you want to be to your competition. Usually, locating near your competitors will enable you to benefit from their marketing efforts which draw customers to the area. Many business owners find competition is a boon for business, causing you to continuously improve your offerings to sharpen your competitive edge.

On the other hand, some owners would rather fill an unmet need in a community by locating their business far away from their competitors. In either case, be sure you understand the level of demand for your trade or products in the area. Can the demand support the addition of your business?

8. Numbers count.

What are all the expenses associated with operating out of a potential location? Many business owners overlook some of these costs, which can add up to a lengthy list: Rent, utilities, taxes, maintenance, and salaries are just some to consider.

It’s important to have a business plan, take the time to go through it, and identify and calculate all the cost factors of your business. If necessary, seek the advice of a professional accountant, who can help with your business financials, or a professional real estate broker, who can help you find the right location for your business.

So, to sum it up, start with “location, location, location,” then drill down through these eight maxims. The more of these you hit on the head, the better you’ll ensure your business success. It’s also a good idea to list these factors according to your priorities, and identify what you can and can’t compromise on. That can help you focus your search and lead you to the best location for your small business.

If you’re interested in a space at any Kimco shopping center, our leasing associates are always available to help you find the right location. If you have any questions or other guidelines to add, feel free to leave a comment below.

To help entrepreneurs successfully navigate their startup years, Kimco has launched a business incubator program called the Kimco Entrepreneurs Year Start (KEYS). We’re rolling out the program starting in California, a state with a deep tradition of business innovation. In fact, California has experienced some of the greatest growth in entrepreneurship in the nation over past decade.

KEYS provides a jump start to new business owners seeking to open their first retail business, service operation, or restaurant by providing educational resources and assistance with business planning, site selection, permitting, and more.

KEYS participants also receive free rent for a year at one of the 100+ Kimco sites in California available within the program. And the support does not stop after the ribbon is cut and the doors open. Kimco provides new business owners ongoing mentoring and guidance to accelerate their business growth during their startup years.

The KEYS program helps give entrepreneurs a business education as well as access to prominent retail space within Kimco’s portfolio. There, they can experiment with fresh ideas, test new strategies, build their innovations, and market their products and services with a storefront.

Most of you know Steve Jobs started Apple out of his garage in Palo Alto, Calif. We hope to find the next Steve Jobs who will reinvent retail concepts, using our stores as their own garages to stimulate innovation, spark the U.S. economy, and help invigorate the American entrepreneurial spirit.

For more details about KEYS and how to apply for the program, see our KEYS webpage and KEYS press release.

But perc has been classified by the EPA as a “likely human carcinogen” if inhaled or consumed. This draws a direct line to dry cleaners, because vapor emissions and waste from their establishments can contaminate the soil, groundwater, and air, not to mention impact the shop environment for employees and customers. In addition, just this past February, the EPA concluded that perc can cause neurological, kidney, immune, and other health problems in addition to cancer.

It’s doubtful any dry cleaner isn’t familiar with the major regulations that have come out over the past several years to reduce harmful emissions from dry cleaning operations. Dry cleaners located in residential buildings must stop using perc by 2020, according to national EPA regulations. And the California Air Resources Board is phasing out all perc dry cleaning statewide by 2023.

As a result, many dry cleaners have begun transitioning to non-toxic, environmentally safe cleaning agents and methods. Manufacturers are responding by producing more green dry cleaning technologies. And some landlords have adopted new policies requiring their dry cleaning tenants to eliminate their use of perc and convert their operations to green establishments.

Over the past several years, Kimco has taken some of the most aggressive strides to reduce the use of perc in its shopping centers and the associated environmental, health, and regulatory risks. We’ve updated our practices and procedures to encourage green dry cleaners to come to our centers and to facilitate the green conversion of existing perc dry cleaners. We have researched the various alternatives and have found several environmentally safe options for dry cleaners.

We wanted to write about our initiatives to make current and prospective Kimco dry cleaning tenants aware of their options. Also, if you’re in the dry cleaning or real estate industries, we hope this helps you understand what we’re doing as a company to support the various governmental regulations and bring greater safety to communities in which our shopping centers are located.

Kimco’s Good Housekeeping Practices

Current Kimco perc dry cleaning tenants that remain in good standing with respect to their lease agreement can continue to use perc and operate their business as they currently do until their lease expires. When their lease expires, if tenants desire to remain in the center, they have the option to either convert their business to one of the approved green technologies, or convert to what is known as a drop-off/pick-up store.

A drop-off location is a store that accepts clothes for dry cleaning, but all the dry cleaning is done off site. This is a popular choice for tenants that have multiple locations. In this case, tenants might have one facility where they dry clean clothes, along with several drop-off locations that feed it.

As far as green technologies go, the options that are generally widely accepted and approved for Kimco’s centers are:

1. The GreenEarth Cleaning method. GreenEarth Cleaning is used by over 1,500 dry cleaners worldwide, and is growing rapidly. The GreenEarth method uses liquid silicone — which is essentially liquefied sand — to carry detergent to garments to remove dirt and oil. Liquid silicone is odorless, colorless, and doesn’t react with fabric fibers. This lets it clean without abrasion, so garments stay smooth and don’t shrink. When liquid silicone is released into the environment, it breaks down into sand, water, and carbon dioxide. GreenEarth has an affiliate program, so Kimco dry cleaners can either license GreenEarth’s technology to use in their business, or open a Tide Dry Cleaners franchise location. Tide Dry Cleaners is a franchise that uses GreenEarth’s technology for all dry cleaning, and is an approved Kimco franchise. More information about GreenEarth and licensing its technology can be found on its website.

2. Wet cleaning. The wet cleaning process uses computer-controlled washers and dryers, and biodegradable, non-hazardous detergents and conditioners, similar to home laundry products. Wet cleaning is safe for many fabrics that are traditionally dry cleaned, including silks, woolens, linens, suede, and leather. All waste is disposed of through existing drains and can be handled by the local waste water treatment facility. Wet cleaning typically whitens whites very well and is highly effective at removing water-based stains.

3. Liquid carbon dioxide cleaning process. Liquid carbon dioxide has a gas-like consistency and a low surface tension. This lets it function as a very effective solvent when combined with recyclable detergents. Once garments are cleaned through the liquid carbon dioxide process, excess dirt and detergent is distilled from wash fluid. Residue is collected and recycled. Carbon dioxide gas is removed from the machine using a compressor and the gas is sent back to the storage tank for reuse. Heat is not needed to dry clothes, eliminating the risk of heat-related damage and setting any stains that might not have been removed during the wash cycle. The process also has excellent color fastness.

It is important to note that the hydrocarbon cleaning process using solvents such as Exxon-Mobil’s DF-2000 or Chevron Phillips’ EcoSolv, which are sometimes perceived as green alternatives, are not truly green. These petroleum-based solvents contain volatile organic compounds, like perc, and are thus treated as hazardous materials. If they leaked into the soil or groundwater, a cleanup might be required. Although better and safer than perc, and less costly to remediate, these solvents pose many of the same risks and problems as perc, so Kimco does not consider hydrocarbon cleaning an acceptable alternative to perc.

Once tenants adopt a green cleaning method, several important business benefits are available to them. Green cleaning creates a competitive differentiation that tenants can use to create a positive narrative about their business and boost their marketing power. This can attract new customers, who are increasingly environmentally conscious.

Kimco is committed to working closely with our dry cleaning tenants so that conversions have as minimal of an impact as possible on their business. Our goal is to help our tenants eliminate environmental, financial, and regulatory risk regarding the use of perc, and improve the safety of the environments in which we operate.

We want our dry cleaning tenants to stay in their locations, and we’d like new tenants to come to Kimco centers that don’t already have a dry cleaning business. Our company mission has always been to support neighborhood shopping centers and their tenants — many of which are small, mom-and-pop shops — and dry cleaners are an integral part of that tenant dynamic.

And at the end of the day, we believe dry cleaners are great co-tenants to have in shopping centers. Dry cleaners require two visits — one to drop off clothes and one to pick them up, which helps bring more traffic to the center overall.

Over the years we have signed new leases with tenants employing some of these green technologies, and many more operating as drop-off locations. We have also had great success over the years converting several of our dry cleaning tenants to green cleaning and drop-off locations.

We’re planning to interview some of our dry cleaning tenants on our blog about their conversion experience to help you understand what’s involved and how to go about handling the process. Look for our first interview in the coming weeks.

If you have any questions about anything you’ve read here, feel free to leave a comment.

Small business lending has showed lackluster growth, and competition from big box and online retailers continues to threaten small shops. As a result, we’re seeing high turnover of mom-and-pop tenants across the industry, contributing to high vacancy rates and struggling shopping centers in challenged regions.

So I’m participating in a webinar hosted by the International Council of Shopping Center’s (ICSC) Open-Air Committee (OAC) to provide insight on how to overcome these challenges and create winning environments for small shops. It’s scheduled for April 25 at 2 p.m. EDT. I encourage you to attend if you’re interested in learning:

• Strategies for successfully targeting small shop tenants
• Motivating/incentivizing leasing staff
• Economic and socioeconomic trends influencing small shop leasing
• Effects of technology on the small shop tenant
• How redevelopment over the next few years will impact small shop leasing

The webinar, Small Shop Leasing Strategies to Strengthen a Center’s Performance, will also include insights from leasing and management expert Beth Azor, President of Azor Advisory Services; and James Matanky, President of Matanky Realty Group, a Chicago-area private owner/developer. Moderating will be Bernard Haddigan, Principal of Haddigan Capital.

I invite you to join us. You don’t have to be an ICSC member to attend. You can sign up for the webinar on ICSC’s website. If you can’t make it, an archived recording will be made available so you can watch it at your convenience. Hope you’ll take part!

There are a number of factors that make Orlando a strong retail market. Population jumps to the top of the list. The Orlando-Kissimmee-Sanford area is well-populated, with an estimated 2,184,768 people, according to Sites USA. This makes it the 26th largest MSA in the United States, and the third largest MSA in Florida. Well-populated areas naturally create high foot traffic for retail.

Orlando’s population is also growing steadily, topping national averages. The Orlando MSA’s population grew 29.8 percent between 2000 and 2010, outpacing the United States’ growth of 9.7 percent during this same decade. This of course indicates a relatively strong area of economic growth and vitality within the country. Sites USA projects Orlando’s population will grow 1.8 percent annually between 2011 and 2016, surpassing the United States’ projected growth rate of 0.8 percent.

Contrast this with the Detroit MSA, which we’ve removed from our list of top MSAs, despite its ranking as the nation’s 12th largest. Detroit experienced a population contraction of 25 percent between 2000 and 2010.

Orlando is also a hub for several major industries. A primary one is tourism. Over 50 million people visit Orlando every year, with attractions including Walt Disney World (the most visited amusement park on the planet), Universal Studios, and SeaWorld. Orlando is also a popular convention and meeting location. Together, this boosts retail expenditures as visitors eat, shop, and sightsee during their stay.

Orlando also has an established technology sector, with organizations including Central Florida Research Park, Lockheed Martin, Boeing, Kennedy Space Center, and many others located in the area. Orlando’s two non-profit hospital systems, Orlando Health and Florida Hospital, have made the area’s health care industry vibrant.

These industries are major employers for the area. Walt Disney World is the largest single-site employer in not only the area, but the country, with 62,200 employees. Several major retailers are also top employers in Orlando, including Walmart and Publix. In total, there are 84,489 businesses in the Orlando MSA and 1,049,695 employees, according to Sites USA’s 2011 estimates.

Total household expenditure in Orlando in 2011 is estimated at $45 billion, or $54,541 per household, according to Sites USA. The organization also estimates Orlando’s median household income at $56,512, above the national median of $53,657 per household.

Orlando’s retail market conditions have improved over the past year. The Orlando market’s vacancy rate dropped to 7.2 percent in the fourth quarter of 2011, having dropped from 7.6 percent over the four quarters of 2011, according to The CoStar Retail Report for year-end 2011. The report also stated net absorption was moderate in the last quarter, at 396,568 square feet. The fourth quarter ended with rents at $15.33 per square foot.

Several big-box retailers have chosen to expand into the Orlando MSA in recent months and years — including Walmart, Super Target, IKEA, and Publix — showing confidence in the area’s market.

Orlando is also home to several major shopping malls, which draw significant retail traffic to the area. The Florida Mall is the area’s largest mall and one of the U.S.’s largest single-story malls, with 250 stores spread out over 1,849,000 square feet. The Mall at Millenia stands at 1,118,000 square feet, and is anchored by Bloomingdale’s, Macy’s, and Neiman Marcus.

Adjacent to the Mall at Millenia is Millennia Plaza, a Kimco property anchored by Dollar Tree, Golfsmith Golf Center, Marshalls, Off Broadway Shoes, Petco, and Pier 1 Imports. Earlier this year, Kimco acquired Grand Oaks Village, an 86,000-square-foot center located in an exclusive community with strong demographics. Average household income within one mile of the site is over $113,000, and within three miles, $97,855.

The full list of Orlando properties in Kimco’s portfolio includes:

• Sand Lake Plaza in Orlando
• Sun Plaza in Orlando
• Sodo Shopping Center in Orlando
• Tri-Cities Shopping Plaza in Mount Dora
• Seminole Centre in Sanford
• Pearl Arts Shopping Center in Altamonte Springs
• Errol Plaza in Apopka
• Renaissance Centre in Altamonte Springs
• East Orlando Shopping Center in East Orlando
• Riverside Landings in Oviedo
• Grand Oaks Village in Orlando
• Millennia Plaza in Orlando
• Bayhill Plaza in Orlando
• Vine Street Square in Kissimmee
• Leesburg Shops in Leesburg
• Century Plaza in Orlando
• Butler Plaza in Casselberry

We believe Orlando is a strong market, and is continuing to grow at a pace faster than most areas in the United States. Orlando is steadily expanding its vibrant retail sector, and is building off its established strengths in tourism, technology, and health care. Together these findings indicate Orlando is a solid area for acquiring retail real estate that will generate excellent returns over time.

With hundreds of attendees coming out for the soiree, the unique event proved to be a successful way to drive traffic to the shopping center and its merchants, while strengthening ties with the local community. We wanted to write about how and why it worked to give you some ideas for increasing foot traffic to your center and connecting with your community.

First, to give you a sense of the demographics of the area, Suburban Square is located in Ardmore, Pa., a town that’s part of what’s known as the “Philadelphia Main Line.” This region is made up of a string of affluent towns situated on the former Main Line of the Pennsylvania Railroad, which ran northwest from downtown Philadelphia. So Suburban Square caters to many well-to-do customers.

One of the center’s businesses is the Ardmore Farmers Market, which comprises about 16 local food and beverage purveyors. Many Main Liners come to the farmers market for lunch and to shop for fresh, gourmet foods and beverages.

Suburban Square and the Ardmore Farmers Market held the Spring Social event to celebrate the arrival of spring, the well-known area organization Devon Horse Show, and the community. There were many factors at play that enabled the team to put together a successful community event. Here are five of the primary strategies:

1. Create an event that’s uniquely yours. As I alluded to earlier, holding events around holidays like Christmas and Fourth of July can certainly give you a surge in foot traffic. But it doesn’t necessarily give you a competitive advantage over other shopping centers. Holding a unique event, however, can give you that leg up. While most shopping centers operated business during the first week of spring, Suburban Square was playing host to an additional hundreds of customers at its Spring Social event. It was an uncommon but delightful premise, as many people look forward to shaking off the winter blues and welcoming the warm weather.

2. Give back to customers. Ardmore Farmers Market merchants offered samples of their fresh, locally produced food and drinks for all attendees to enjoy. Of course, free food is a surefire way to lure attendees to any event. But this wasn’t the merchants’ only motivation. Their objective was to use their free offerings as a way of saying thank you to their loyal customers and welcoming new customers to try their goods.

3. Partner with local organizations that have similar audiences. Suburban Square partnered with Devon Horse Show, which has a similar audience. Attendees got a sneak peek at this year’s Devon Horse Show and Country Fair, as supporters from the Devon Horse Show Ladies’ Committee came out to the event, donning their best horse show hats and dresses. The organization’s three-piece country band also paraded through the merchants’ stands. This helped increase the number of targeted attendees by drawing Devon Horse Show fans to the event, while giving Devon Horse Show a platform from which to promote its upcoming horse show. In turn, this created a symbiotic relationship between Suburban Square and Devon Horse Show, which fostered community relations.

4. Make the partnership relevant to the event. The partnership should be relevant to the event to create a cohesive message. Consider: One of the main purposes of the event was to connect with the community. So it follows to partner with an organization that has a strong community focus as well. Devon Horse Show fits the bill, as it donates money raised from the Devon Horse Show and Country Fair to the local Bryn Mawr Hospital. In addition, some of the featured food samples at the event came right out of the Devon Horse Show cookbook, “Appetizers at Devon.” Again, this tied the Ardmore Farmers Market and Devon Horse Show together in a relevant way.

5. Highlight the event and its community focus through your communications channels. Our blogging team was at Suburban Square to capture the sights and sounds, interview attendees, and meet the team that created the Spring Social event. And we’re showcasing their coverage right here on our blog. In fact, you can tune into our video footage here. (You can skip ahead to any part using the index below.)

• Attendees from the community talk about what brought them out to the event

• Suburban Square’s Mark Bachus and Devon Horse Show’s Karin Maynard talk about why they worked together to put on the Spring Social

• Attendees tell us what they’ve been sampling

• Ardmore Farmers Market merchant Carrie Kohs talks about what inspired her to create the event with Suburban Square

• Merchants show us what they have for attendees to savor

• Attendees talk about some of their favorite merchants at the Ardmore Farmers Market

You can also flip through the Spring Social photos our team took:

The video and photo coverage captures the community focus and tells the story behind the event — along with this very blog post. Kimco’s blog is one way we feature the goings-on at our centers and tenants’ businesses, and highlights how they’re adding value to the communities in which they’re located.

So there you have it. Five elements for putting together a successful seasonal event at your shopping center that helps drive foot traffic and strengthen community relations. What other tactics and strategies do you see from watching the video that enabled the team to create a successful event?