We’ve all seen, heard, and read the doom-and-gloom reports. Bricks-and-mortar retail real estate is dead and going the way of the typewriter, thanks to internet competition. But is the herd mentality of this sentiment telling the whole story? I would certainly argue that it is not.
But aren’t online retailers like Amazon having a major effect on bricks-and-mortar retailers? Of course! But it isn’t all bad news out there. Yes, the chains that are shuttering stores like JCPenney, Macy’s, Sears, Kmart, Gander Mountain, hhgregg, Radio Shack, and the like tend to make the most headlines. Yes, retailers are much more cautious in their approach to expanding their physical footprints and are exploring “omni-channel” strategies to best utilize a mix of physical stores, online shopping, and other forms of revenue generation. So where is the good news?
The good news is that despite all of this, retailers still plan to open over 80 million square feet of retail space in 2017. This would drop the national retail vacancy rate from 5.5% down to 5.1%. Even after many of the aforementioned closures and others like them have gone into effect the national multi-tenant retail has seen rent growth for 12 consecutive quarters. In other words, the ratio of supply-and-demand is still very healthy on a national scale in the retail real estate industry.
This will be a major theme and topic of discussion at the International Council of Shopping Centers (ICSC) RECon event in Las Vegas on May 21-24. ICSC is a trade organization that serves the global retail real estate industry. ICSC provides its 70,000+ member network in over 100 countries with invaluable resources, connections and industry insights that are actively working together to shape public policy. Members include retailers, restaurants, owners/developers, investors, brokers, and other trades involved in the retail real estate industry. RECon is the world’s largest retail real estate convention with more than 37,000 attendees representing 58 countries who gather for power deal making, endless networking, and innovative education. This makes RECon the premier gathering place for retail real estate professionals. I look forward to attending and hearing first-hand what these professionals have to say on this topic and others affecting the industry.
Source: Shopping Center Today, May 2017 Edition
SVN | SouthLand Commercial Advisor
Chris was born and raised in Pensacola and began working at Granger Properties (now SVN | SouthLand Commercial) in the Spring of 2010 after obtaining degrees in Finance and Real Estate from Florida State University. Chris and Sonny Granger work together in a team format to help better serve their clients. Together they focus primarily on the brokerage of commercial and investment real estate and have established an impressive track record and reputation for outstanding knowledge, expertise & service on behalf of their clients. Chris is also the Director of Sales & Leasing for Granger Development, an independent investment and development company. Since 2012 Chris has taken part in the development and redevelopment of over 100,000 square feet of office and retail properties locally. To view Chris Palmer’s commercial real estate listings, or to learn more about him, Click Here