Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
The commercial real estate sector has been seeing a lot of changes over the past several years, and the industry has had to figure out how to work through these changes. From grocery delivery services to consumers looking for more options, the grocery sector has some of the most significant changes.
Has the in-store experience given way to the online shopping craze? Not quite yet, according to the experts at Coldwell Banker Commercial Affiliates. The Omnichannel Retail and Commercial Real Estate Survey of November 2016 finds that brick and mortar have yet to roll over and play dead.
With the market changing over time, retailers in the grocery and apparel sectors must constantly rejigger their techniques to stay relevant. Let’s break down the facts so that you have a better chance of coming out on top when the competition gets tight.
Sam Zell recently stated: “The real estate cycle is nearing its end” (Pensions & Investments, May 1, 2017). We must admit that Sam had great timing when he sold his Equity Office REIT to Blackstone in 2007 which was the peak of the last cycle.
Some businesses are incredibly seasonal. Ice cream shops or retail shops in resort areas, for example, depend heavily on the revenue they generate in the summer months. Securing a good lease for these months can help greatly contribute to the success of your business's small window during the year.
The retail landscape has been changing for quite some time with the largest impact coming from online retailers and more purchases being made on the internet. In fact, in just the 3 years between 2010 and 2013 the number of store visits dropped from 34 billion visits to 17.6 billion visits according to Elite Wealth Management.
The retail sector has seen some dramatic shifts in the past years as technology and the presence of online shopping continues to evolve and grow. Technology and online shopping has even driven some strictly brick and mortar retailers like Borders to go out of business.
Recently, Amazon unveiled their newest concept called Amazon Go. While Amazon has taken over and changed the face of many industries, most notably books, they have been looking to get into grocery.
While big investors like General Growth Properties and Simon Property Group are shifting their focus to prime properties in desirable locations —those that offer heavy foot traffic and are command the attention of high-end retailers— doors are opening for smaller investors who believe in the value of second-tier malls.
By all estimates, the back-to-school season will have pulled in more than $75 billion dollars. It is second only to holiday shopping in the highest grossing retail season. With more consumers shopping via mobile than ever before, where can retailers expect to see the highest sales this holiday; online or in store retail?