Retail Real Estate Evolving with Changing Demographics
www.arrivatollc.com – I was recently interviewed to provide some insights on the changing retail real estate market.
This was a fun topic since we are principal retail developers ourselves.
While most simply put a blanket on the retail market by saying it is over, I believe this is hardly the case.
The real fact is that the demographics are simply changing and evolving.
The big box retail centers are certainly changing with the Amazon and Online Shopping Culture. There are some retailers that are being completely shuttered while others are being right-sized for today’s market. The fact is that the big box retail sector became overbuilt with too many malls within one region and many brands were oversaturated in most markets.
Moving forward, we see two (2) trends that are emerging.
Consumers are seeking (1) experiences and (2) value with their retail habits.
This means that you will continue to see malls and outlet centers become reimagined. They need to be more centric as social and walkable concepts with entertainment as lifestyle centers. This means providing casual and organic health conscious eateries along with niche personal care type retailers that are Amazon proof. These include trendy eateries, hair dressers, financial centers, phone stories, exercise facilities, and coffee shops.
The bottom line – most millennials actually still value the in-store experience. They just want the social experience to go along with it and the opportunity to find bargains.
As a reminder, we are a retail developer ourselves. Working with retailers in expansion mode, we identify pad sites to develop single-tenant retail structures including those for dialysis centers, casual eateries, automotive uses, and banking uses. Our firm works through the entitlement and pre-development process through major and secondary MSAs nationwide, positioning ourselves in heavily trafficked retail corridors.
#forevercompete #winthisday #innerelite #leagueofilluminati