Retail Real Estate Trends

Retail Real Estate Trends

The information on the internet makes consumers more informed on products and pricing

• Retail margins are under pressure
• Equals lower rent

Technology creates more efficient use of inventory & space

• Equals more sale in less space
• Equals smaller stores

Supermarket business is increasingly focused on dominant players and larger stores

Retail industry is increasing dominated by stronger national anchors over their smaller regional/local peers

• This is not necessarily the case with in-line space

Large spaces are hard to re-tenant

Exclusive use provisions will impact 2nd generation space

• Landlords need to work hard to limit exclusive use provisions 

Landlords are making greater use of service to maintain occupancy

• One study – service was less than 15% ten years ago vs. 24% today
• Service businesses: optometrists, staffing office, dentist, etc.

“Start ups’ companies retail, service, etc. will be new “mom & pops”

“Watch out for Walmart”

• Almost 10% of all retail

Hope you find this information interesting, Tyler Saldutti.

Source: Gary M. Ralston, CCIM, SIOR, CPM, CRE, CLS, CDP, CRX, FRICS