Technology to Count Cars in Retail Parking Lots from Space 1
July 12, 2019 Technology to Count Cars in Retail Parking Lots from Space

Technology continues to increase efficiencies and create competitive advantages for investors in the retail industry. Sophisticated investors are using satellites to count cars in parking lots to gain a real-time understanding of traffic attributed to same-store sales growth, an important metric for physical retailers. This technology provides investors with data support of store foot traffic before retailers disclose their quarterly financial results. It can be a basis of indication coupled with other metrics indicating if...

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Renovation Financing for Grocery Anchored, Strip Centers Plentiful 2
July 10, 2019 Renovation Financing for Grocery Anchored, Strip Centers Plentiful

Private owners and shopping center investment groups who continue to seek out value are adding retail opportunities, whether that be a grocery-anchored center that needs cosmetic upgrades in order to boost rents and to re-tenant the small shop space or unanchored strip centers with a vacancy that needs to be completely repositioned. Opportunities such as the examples outlined above are being highly sought out after and there is no shortage of banks willing to funds...

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Investors Work to Revive Storied Retail Brands 3
July 2, 2019 Investors Work to Revive Storied Retail Brands

Retail brands such as Circuit City, Toy R Us, Bon Ton, and Wet Seal are a few retailers that have gone through the bankruptcy process and are now re-emerging in an effort to find themselves and their new identity. Many of these concepts will look to online platforms to re-engage with customers, but in the world of brick and mortar, they must create some sort of a physical strategy for an experience that cannot be...

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Half of Americans Use Click and Collect 4
June 28, 2019 Half of Americans Use Click and Collect

Click and collect is an investment in both physical and digital, with retailers implementing this technology and consumers increasingly using it. According to a recent ICSC survey, 50% of adults use click and collect with as many as 61% using it as frequently as once per month. The retailers that offer this option are seeing an increase in sales and overall happier customers. Technology that makes retail purchasing frictionless is now mandatory as consumers expect...

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Do Mall Owners Anticipate More Consolidation? 5
June 25, 2019 Do Mall Owners Anticipate More Consolidation?

The mall landscape has undergone two significant transactions, which finalized in 2018. Brookfield Properties acquired GGP for $15 billion, and Unibail-Rodamco purchased Westfield for $22 billion.The 80% of U.S. malls that are owned by publicly traded REITs with the top 4 malls owners in the US, measured by the total value of their owned or controlled portfolios, are Simon (110 malls, $49 billion), Brookfield (152 malls, $42 billion), Macerich (46 malls, $15.7 billion) and URW...

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Retailers Step Up as More Shoppers Opt to Rent Rather Than Buy 6
June 19, 2019 Retailers Step Up as More Shoppers Opt to Rent Rather Than Buy

Renting rather than buying is the last trend in the world of retail, and I do not see this changing. The customer in today’s world is interested in having access to the newest selections, and retailers are stepping up to provide customers with this emerging demand. For instance, Rent the Runway is a women’s online apparel service that provides customers with an option to pay for a monthly subscription to rent, use, and return apparel...

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Smaller Stores Work Better, Abercrombie & Fitch Says 7
June 17, 2019 Smaller Stores Work Better, Abercrombie & Fitch Says

Abercrombie and Fitch, a long-standing brand very familiar with millennials mainly through their middle school and high school days, is undergoing change with efforts to evolve to the standards of retail today. How many of you remember going to an A&F store with dark lighting in a large store footprint? The brand has announced plans to open more stores, shutter the non-performing locations, and correctly size their store footprint to maximize efficiency and sales per...

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shopping cart
June 12, 2019 WSJ Editor Challenges ‘Retail Apocalypse’ Notion

Brick and Mortar is strong, and retail has transformed and will continue to transform for the foreseeable future. The retailers that incorporate omnichannel into their business model will survive, and the ones that don’t will become extinct. 90% of total retail sales are still completed in stores. Over the last 10 years, overall online retail sales have grown gradually from about 3% in 2007 to about 10% in 2018. People still prefer to buy online,...

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Health & Wellness at RECon: Clinics, Shopping Centers Make for Healthful Relationships 8
June 10, 2019 Health & Wellness at RECon: Clinics, Shopping Centers Make for Healthful Relationships

Shopping centers and health care users are a natural fit; both the health care and shopping center industries continues to evolve, and common ground is being found between the two industries more than ever before. Past obstacles such as parking concerns and exclusivity agreements for health care tenants are being approached by landlords with a different mindset than in the past. Landlords value health care tenants for several reasons, including the diversity they can bring...

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Spas Go Mainstream at Retail Centers 9
June 4, 2019 Spas Go Mainstream at Retail Centers

With spas continuing to grow at a roaring pace, consumers value health and wellness now more than ever before. This growth has been mainly fueled by a strong economy with individuals having more disposable income. In addition, consumers are placing more value on health and wellness and taking more responsibility for their body and mind. As many would say, people want to live their best life, looking for longevity, striving to be as active as...

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Traditional Retailers See Progress in E-Commerce Adaptation Strategies 10
May 30, 2019 Traditional Retailers See Progress in E-Commerce Adaptation Strategies

Retail is constantly evolving and changing. In order to compete in today’s environment, retailers must be incorporating omnichannel into their strategy. The dinosaurs that are reluctant to invest the time and resources to morph their retail practice into the standards of today for future growth and sustainability will be left in the dust. Many retailers such as Kroger and Macy’s are aggressively adopting omnichannel platforms in order to meet today’s consumer expectations. At the ICSC...

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Big Gains for Small Shops 11
May 27, 2019 Big Gains for Small Shops

Tenants defined as “small shop” tenants are performing well, and landlords are participating in their success. Small shop tenants are defined as retail tenants leasing less than 10,000 square feet. The growth of small shop tenants has universally increased across the portfolio of many of the major shopping center owners. Vestar, a Phoenix-based owner with over 70 properties, acknowledges that most of the deals that they are doing have been with small format retailers and...

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Investment Demand for Triple-Net Leases Remains High 12
May 23, 2019 Investment Demand for Triple-Net Leases Remains High

The demand for triple net lease retail investments remains high throughout the country. This investment product is in most demand for tenants that are restaurant-based uses. An investors preference is to acquire assets which include restaurant based, service styled uses because they have less to worry about given the Amazon effect. Assets encompassed by restaurants are a larger driver of traffic and tend to create a synergy that bodes well for surrounding retail. This is...

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Restaurants and Grocery Stores Re-Evaluate Space Needs Based on Rising Demand for Deliveries 13
May 20, 2019 Restaurants and Grocery Stores Re-Evaluate Space Needs Based on Rising Demand for Deliveries

Restaurants are continuing to right-fit their footprint to accommodate new consumer demands. To meet consumer demands for delivery, restaurants are experimenting with testing kitchens only or shared kitchen outlets with no dine-in options. This comes at a time where delivery costs are high and restaurants are solving this problem by reducing square footage and paying less in effective rent. There are companies setting up 3rd party kitchen sites, like a food court, where you might...

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“Keep on Keepin’ On”: Economists React to April Jobs Report on Twitter 14
May 16, 2019 “Keep on Keepin’ On”: Economists React to April Jobs Report on Twitter

The economy in the United States has delivered its 103rd straight month of employment gains by adding approx. 263,000 jobs in April. This marks yet again another strong and record-breaking metric that proves the current strength and growth of the US economy. Unemployment dropped to 3.6% and is at its lowest level since December 1969. This economic momentum continues to remain evident and a strong economy will continue to lead to consumer confidence and spending...

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Kohl’s to accept Amazon returns at all stores 15
May 13, 2019 Kohl’s to accept Amazon returns at all stores

Kohl’s is a retailer getting creative and thinking outside of the box! Kohl’s has announced a partnership with Amazon to accept Amazon product returns at their brick and mortar locations. With Kohl’s extensive brick and mortar presence, approx. 1,100 stores across 49 states, this move will allow both companies to provide excellent customer service, convenience for their customers and allow for a strong omnichannel approach providing a seamless shopping experience. Right fitting their stores to...

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Bank Branch Closures Are Increasing, But Alternative Tenants May Take Over Vacated Spaces 16
May 6, 2019 Bank Branch Closures Are Increasing, But Alternative Tenants May Take Over Vacated Spaces

The banking industry continues to change, with the majority of financial institutions focusing resources on technology initiatives rather than aggressive brick and mortar growth strategies as in the past. Over the last 24 months, more than 5,700 bank branches closed throughout the country with a forecasted 1,700 units to close in 2019. Don’t take these stats the wrong way! Banks remain to be in a healthy position, this move is simply a result of a...

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The Food and Beverage Industry is Internet Proof: Report 17
April 29, 2019 The Food and Beverage Industry is Internet Proof: Report

The food and restaurant industry is expected to grow by approx. 13% over the next five years. What does this mean? This means that this sector is very strong and will continue to be very competitive which will drive innovation. Majority of the food service spending, approx. 75%, results at dine-in restaurants but online ordering is on the rise globally. The traditional burger or sandwich is no longer acceptable. Consumers value experience much more in...

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Chipotle, Panera Turn to Drive- Thru’s as Fast Food Stigma Fades 19
April 18, 2019 Chipotle, Panera Turn to Drive- Thru’s as Fast Food Stigma Fades

Chipotle adding Drive-Thrus! In an effort to compete for the stomach dollar of the consumer, Chipotle has announced plans to add “several dozen” drive up windows in 2019.Chipotle adding Drive-Thrus! In an effort to compete for the stomach dollar of the consumer, Chipotle has announced plans to add “several dozen” drive up windows in 2019. It is all about the convenience, and brands are looking to add this luxury of an amenity into their stores...

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Grocery Stores Head to the Mall 20
April 16, 2019 Grocery Stores Head to the Mall

Grocery store chains are not only in expansion mode, many are entertaining or are in the works of adding mall units into their growth plans. As of recently, many grocery store chains, such as Whole Foods, Wegmans, Lidl, and The Fresh Market have taken space vacated by department stores in malls. This is advantageous to mall landlords as it adds a tenant that can typically pay more in rent than the previous department store anchors...

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Economists React to the March Jobs Report on Twitter: “Sigh of Relief” 21
April 10, 2019 Economists React to the March Jobs Report on Twitter: “Sigh of Relief”

The economy continues to remain sturdy with another strong job report. In the month of March, non farm payroll employment increased by 196,000. This report marks the United States’ 102nd continuous straight month of employment gains. The unemployment rate remained at 3.8% nationally with the unemployment rate for the Tampa MSA at 3.4% preliminary (BLS). As the first quarter of 2019 came to an end, the economy proved to perform well with continued job growth...

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ICSC Holds EPA Region 9 Meeting 22
April 8, 2019 ICSC Holds EPA Region 9 Meeting

ICSC meets with EPA officials to advocate for the expedited process of delisting sites from the National Priorities List (NPL) with a focus on risk-based clean ups and urged for the consideration of partial delisting as a best practice. This is important because this proactive initiative urges the EPA to focus on sites with the highest impact and best future public benefit to accelerate its decision-making process and contain costs. Shopping center developers use brownfield...

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Discount Grocers Compete for Value Shoppers 23
April 4, 2019 Discount Grocers Compete for Value Shoppers

Did you know that over 400 grocery stores opened last year in 2018, bringing the total US store count to over 65,700 total grocery units? Grocery is the backbone to the retail world of the consumer and continues to have more and more players entering the space every year. This sector is ever changing and will continue to evolve entering a new era of platforms and offerings by the individual grocery brands. Given the so-called...

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In Their Own Words: What the Next Economic Downturn Will Mean for Commercial Real Estate 24
March 26, 2019 In Their Own Words: What the Next Economic Downturn Will Mean for Commercial Real Estate

Commercial real estate continues to be on a tear, with many calling this ballgame extra innings. Most believe that the industry is healthy enough with strong core fundamentals to withstand a downturn. Diversification is key, with most c-level executives and market leaders advising to build a portfolio to span geographically with multiple property types and specialty sectors to insulate against headwinds. A focus on Class A product was a common theme, as many leaders believe...

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Spas Go Mainstream 25
March 21, 2019 Spas Go Mainstream

Did you know that there are approx. 20,400 spas operating in the US with aggregate annual revenues of about $18.3 billion? With the economy in healthy shape, consumers are spending more of their disposable income on self-care. Consumers continue to invest more into their own health and wellness entering into a lifestyle choice that a majority of the population is embracing. Spa concepts such as Hand & Stone, Massage Envy and Elements Massage are some...

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Retailers to Open 2,250 US Stores This Year, Says Report 26
March 19, 2019 Retailers to Open 2,250 US Stores This Year, Says Report

Retail is strong and the brands of which are adopting and embracing change will continue to thrive. Retail is evolving every day and has changed significantly over the last 30 years. Don’t expect it to stop now! Shopping centers will morph and evolve faster over the next 5 to 10 years than ever before. The way consumers shop has changed the retail landscape and with in turn has as changed the physical infrastructure and footprint...

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Late-Cycle Real Estate Investing Has Done a 180 27
March 14, 2019 Late-Cycle Real Estate Investing Has Done a 180

The current real estate cycle is considered to be in the later innings of the baseball game with some calling it a post 7th inning stretch and others describing it as long in the tooth, more closely resembling a game in extra innings. One thing is for certain, the back end to this real estate cycle is much different than the lead-up to the 2008 financial crisis. Overall leverage and lending practices are much more...

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Dollar Tree to Renovate 1,000-plus Family Dollar Stores; Close Up to 390 Others 28
March 11, 2019 Dollar Tree to Renovate 1,000-plus Family Dollar Stores; Close Up to 390 Others

Dollar Stores continue to grow and evolve! Dollar Tree, which has over 7,000+ stores and owns Family Dollar with over 8,000+ stores, announced a commitment to renovating 1,000 Family Dollar units in the coming year. The plan calls for the company to rebrand 200 Family Dollar stores to the Dollar Tree banner and completely close approx. 390 Family Dollar units across the country. The company announced its 4th quarter results from March 6th, 2019 with...

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What Will Happen to All of the Vacant Sears/Kmart Boxes? 29
March 7, 2019 What Will Happen to All of the Vacant Sears/Kmart Boxes?

What will happen to the hundreds of shuttered Kmart and Sears locations around the country? The retail locations formally occupied by these tenants will be repurposed or redeveloped to meet current market demands, with the exact use or concept to be dictated by the individual trade areas of which these locations lay. Most of these former Sears and Kmart boxes are old and functionally obsolete, ranging between 100,000 – 200,000 SF and in many instances...

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New Grocery Store Business Coming from Amazon? 30
March 4, 2019 New Grocery Store Business Coming from Amazon?

Amazon interested to open a new grocery store model separate from its Whole Foods Concept. The intent was that Amazon wanted to enter the grocery business by way of its Whole Foods acquisition, however their desire appears to exceed purely as a reformat and transformation of just that grocery brand alone. Their recent efforts as reported by the Wall Street Journal includes the plans of opening a grocery store in Los Angeles this year, with...

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Strip Malls: The Least Glamorous Segment In Retail Is Among The Sector’s Strongest Performers 31
March 2, 2019 Strip Malls: The Least Glamorous Segment In Retail Is Among The Sector’s Strongest Performers

E-Commerce Resistant! Strip Centers continue to be a desirable asset class for investors to own. The shopping center tenant mix is usually composed of more internet resistant and service-based uses, concepts from restaurant to medical to daily service needs. The locations of these properties traditionally are in the middle of neighborhoods and can conveniently serve the local population. Strip Centers with good signage, parking, and accessibility will continue to be in high demand. Why is...

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NRF study says consumers shop at discount retailers regardless of age or income 32
February 27, 2019 NRF study says consumers shop at discount retailers regardless of age or income

Everyone likes a bargain regardless of age or income! Majority of U.S. consumers are driven by value and have remained price-conscious shoppers throughout time, regularly visiting discount retailers to seek out a bargain. Regardless of age, looking for the best price remains to be a habit in consumers of almost every demographic group. The art of a steal, is what drives this desire regardless if the consumer is capable of affording to shop elsewhere. The...

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CRE Investors can still profit from Retail Real Estate – If they stick with Service-Oriented Tenants 33
February 19, 2019 CRE Investors can still profit from Retail Real Estate – If they stick with Service-Oriented Tenants

Real estate will continue to be a safe harbor for investors in our time of extreme uncertainty as we move into the future. As investors seek out new investments to deploy capital, they should seek out retail investment properties that include service-oriented uses, experimental retail, and internet resistant concepts as they are more likely to provide healthy, risk adjusted returns. With so many sources of potential market volatility threatening investors, U.S. real estate remains a...

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Thriving “Self-Care” Sector Fuels Demand for Strip Center Space 34
February 11, 2019 Thriving “Self-Care” Sector Fuels Demand for Strip Center Space

Fitness and Self Care Concepts continue to warrant strong demand for space in strip centers. The “self-care” sector which includes wellness, health, fitness, and beauty is a growing business as more and more people are investing their discretionary income into themselves. Majority of these self-care tenants are offering memberships instead of a pay as you go model which bodes well for shopping center owners, adjacent tenants, and retail foot traffic at these properties as it...

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Energize aging shopping centers by splitting them in two, architect advises 35
February 7, 2019 Energize aging shopping centers by splitting them in two, architect advises

Renovate and Freshen Up your Strip Center! Why? Because in many instances you can add tremendous value by renovating or redeveloping your plaza to attract better quality higher paying retail tenants. Creating new energy by way of renovation directly affects the property’s bottom line and positions retail assets to be setup for long-term success by attracting tenants and keeping up the occupancy rate. Deighton Babis with BDG Architects coined a term “In Cap” and created...

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