By Matthew K. Harding
Chief Executive Officer, Levin Management Corporation
Published in Chain Store Age (May 2026) Read the original article: https://chainstoreage.com/getting-creative-about-creating-space
As demand for quality retail space continues to outpace supply, owners and leasing teams are rethinking how shopping centers evolve. In this thought leadership article, originally published in Chain Store Age, Levin Management Corporation CEO Matthew K. Harding explores how strategic redevelopment, tenant repositioning and creative leasing are helping owners unlock new opportunities while creating stronger, more productive retail destinations.
Limited Retail Space Is Reshaping Retail Real Estate
For years, the narrative in retail real estate has centered on a lack of available space—and that reality isn't changing anytime soon. In many of today's most sought-after markets, particularly throughout the Northeast, new development remains limited while retailer demand continues to grow. The result is a simple but pressing challenge: Where can expanding retailers go when there's little to no space left to lease?
Increasingly, the answer is not about finding space—it's about creating it.
In this environment, leasing has evolved into something far more strategic than simply filling vacancies. At Levin Management Corporation, we are seeing this firsthand across retail properties in some of the Northeast's most supply-constrained markets. It has become, in many ways, a chess game. Owners and operators are thinking holistically about their centers—repositioning assets by moving pieces around, reconfiguring space, relocating tenants and using key anchor opportunities to drive broader transformation and create centers that better align with how consumers shop, dine and spend their time today.
Redevelopment in Action: Creating Better Shopping Centers
These projects demonstrate how strategic redevelopment and thoughtful leasing can strengthen shopping centers while responding to changing consumer demand.
Somerset Shopping Center | Bridgewater, N.J.
At Somerset Shopping Center in Bridgewater, a former Christmas Tree Shops box presented an opportunity to do more than simply backfill space. By introducing Sprouts Farmers Market, the center gains a strong grocery anchor aligned with today's consumer demand. At the same time, the deal is serving as a catalyst for broader reconfiguration—moving existing retailers to optimize space, creating opportunities for additional national tenants, and expanding the presence of fitness and service-oriented uses. The result is a more productive and better-balanced merchandising mix across the property.
West Orange Plaza | West Orange, N.J.
A similar strategy is playing out at West Orange Plaza in West Orange. There, the former Kmart is being redeveloped into a new Target, significantly elevating the center's profile and traffic. That anchor transformation has opened the door for additional growth, including the development of new outparcel space to meet strong retailer demand. Even before construction is complete, Phase I of the expansion is already nearing full occupancy, with leases signed or under active negotiation for new restaurants, fitness users and service providers that will further strengthen the property's role as a community shopping destination.
Blue Star Shopping Center | Watchung, N.J.
At Blue Star Shopping Center in Watchung, long-term planning also played a critical role. Space was reserved within the center for the development of a new ShopRite, which now serves as the property's dominant grocery anchor. With that in place, the focus shifted to reconfiguring the former grocery space to accommodate Burlington and create a new Marshalls store. The center has also strengthened its merchandising mix with new dining destinations including honeygrow, Raising Cane's Chicken Fingers and Taco Bell, along with popular fitness and value-oriented retailers such as Planet Fitness and Five Below.
A Broader Shift in Retail Real Estate
These examples reflect a broader industry shift: Today's most successful retail centers are not static—they continually evolve to curate a tenant mix that better aligns with changing consumer habits and expectations.
Importantly, this strategy is not limited to fully leased properties. While space constraints often drive the need for creative solutions, the underlying objective is larger: creating stronger, more relevant shopping centers. That means identifying underutilized or outdated space, optimizing building footprints and introducing uses that drive both traffic and customer engagement.
For retailers, this shift underscores the importance of flexibility. Opportunities may not always come in the form of traditional vacancies, but rather through repositioned space within an evolving center. For owners, success requires looking beyond individual lease transactions and taking a long-term view of how each leasing decision contributes to the strength of the overall asset.
Looking Beyond Vacancy to Long-Term Value
In today's constrained retail market, available space is no longer simply the starting point—it is often the result of thoughtful planning and strategic redevelopment. By embracing reconfiguration, repositioning existing assets and taking a comprehensive view of their properties, owners are not only responding to limited supply but also creating stronger shopping centers that are better aligned with today's consumers and positioned for long-term success.
The future of retail isn't about waiting for space to become available—it's about creating opportunities where none previously existed.
About the Author
Matthew K. Harding is Chief Executive Officer of Levin Management Corporation (LMC), one of the Northeast's leading commercial real estate services firms. The company provides retail leasing, property management, construction management and advisory services for more than 125 properties totaling approximately 16 million square feet throughout the Northeast and Mid-Atlantic.
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Levin Management Corporation helps owners maximize the value of retail properties through strategic leasing, redevelopment, property management and advisory services. Learn more about our Retail Leasing, Property Management, Accounting & Financial Reporting, Construction Management & Development, and Commercial Real Estate Advisory services.
