Suburban Retail Has Been Outperforming Urban Properties. Will This Trend Continue? 1
By: Jeff Dervech - August 2, 2022 Suburban Retail Has Been Outperforming Urban Properties. Will This Trend Continue?

Many suburban retailers have been doing more business than urban locations for the past few years. Due to the Pandemic and an increase in people working from home, they are shopping closer to their homes and continue to do so. Now, there has been a shift in the workforce with people going into the office a few times a week vs. full time and it seems to be benefitting both, urban and suburban properties. According...

Read More
Markdown Mania – Tv’s, Furniture, Leisure Wear and More Hits Major Retailers Moving Excess Inventory on Pandemic-Era Goods 2
By: Jeff Dervech - July 27, 2022 Markdown Mania – Tv’s, Furniture, Leisure Wear and More Hits Major Retailers Moving Excess Inventory on Pandemic-Era Goods

Retailers are seeing large amounts of inventory in certain types of products and are being forced to sell them at a discount or halt purchasing from certain vendors in order to get rid of the excess that may be taking up valuable space in warehouses. The main reason? Consumers preferences have shifted through the Pandemic up to now. For example, more people are searching for back to office apparel in lieu of athleisure wear. During...

Read More
Taco Bell readies ‘Defy’ frictionless drive-thru opening 3
By: Jeff Dervech - July 24, 2022 Taco Bell readies ‘Defy’ frictionless drive-thru opening

Enhancing the drive-thru experience has been a new hot topic since the pandemic hit. People are demanding more contactless options, and a seamless experience when picking up their food. Taco Bell is one fast food chain that has adapted to customer demands and is opening its first futuristic looking restaurant concept called ‘Defy’ in Minnesota. The design is a two-story structure and features four drive-thrus below the restaurant to serve customers at record speeds. Three...

Read More
Consumers are venting about menu prices, but not always acting on it 4
By: Jeff Dervech - July 22, 2022 Consumers are venting about menu prices, but not always acting on it

In a recent study conducted on Yelp, more customers than ever are writing reviews mentioning higher costs of prices at their favorite restaurants. In the first quarter of 2022, inflation hit record highs since the 1980’s. Many restaurants are reporting having to increase the prices of their menu items or cut back on portion size offerings; however, the restaurants are seeing little to no decline in the amount of pushback they are receiving from customers....

Read More
Kroger Targets new market for fast delivery with hiring initiative 5
By: Jeff Dervech - July 20, 2022 Kroger Targets new market for fast delivery with hiring initiative

Grocery delivery has become a widely popular trend. About one year ago, large grocery chain Kroger opened its first Customer Fulfillment Center (CFC) in Groveland, Florida to service the greater Tampa Bay, Orlando, and Jacksonville markets. With much success in these markets and with its e-commerce delivery business model, the chain recently announced it will be expanding its reach into the South Florida market and hiring approximately 200 more workers. Instead of going to a...

Read More
Demand For Electric Vehicles Is Rising. How Can Building Owners Prepare for The Influx? 6
By: Jeff Dervech - June 10, 2022 Demand For Electric Vehicles Is Rising. How Can Building Owners Prepare for The Influx?

With the rise in gas prices coupled with the Biden administrations $5 Billion budget to support State EV charging station infrastructure, it is highly likely we will be seeing an even greater increase in demand for Electric Vehicles. From 2016 to 2020, the increase in number of electric vehicles has tripled to a total of 1.8 million registered in the U.S. For building owners, especially residential, it is critical that they begin investing in the...

Read More
Target Q1 earnings plunge amid ‘unusually high costs’ 7
By: Jeff Dervech - June 9, 2022 Target Q1 earnings plunge amid ‘unusually high costs’

Although Target increased sales in Q1 of 2022, they missed profit margins by almost $1 billion from last year. Net profit margin decreased due to the high costs of transportation and freight. It is refreshing to see that their “total revenue rose 4.0% to $25.17 billion, above estimates of $24.48 billion. Same-store sales increased 3.3%, also more than expected. Sales growth was led by frequently purchased categories, including food & beverage, beauty and household essentials.” Unfortunately,...

Read More
Does Increased Leasing Activity Signal Recovery for Retail Sector? 8
By: Jeff Dervech - June 7, 2022 Does Increased Leasing Activity Signal Recovery for Retail Sector?

Demand for leasing space has increased significantly from 2020 to 2021. Many businesses that were already on the brink of closing were propelled to close during the pandemic and new, stronger tenants have taken their places within retail strip centers. Retail commercial real estate firms have stated that from March 2021 to March 2022 was the strongest year for retail tenant lease ups in nearly five years. With the pandemic winding down and pent-up demand...

Read More
Chipotle raised prices another 4% but still can’t outrun inflation 9
By: Jeff Dervech - June 3, 2022 Chipotle raised prices another 4% but still can’t outrun inflation

With inflation at historic highs, it is severely impacting restaurants bottom line, at least for now! Take for instance Chipotle. High prices for avocados, dairy products and tortillas have forced the fast causal chain Chipotle to raise prices last quarter above 4%. Even with this increase it is not allowing them to achieve the margins that they would like to obtain. Chipotle CFO, Jack Hartung said, “there are no signs that food or packaging prices...

Read More
Inside the Store - Amazon Go's new suburban format 10
By: Jeff Dervech - May 20, 2022 Inside the Store – Amazon Go’s new suburban format

Amazon opened its first suburban convenience store concept called “Amazon Go” in Washington on April 26, 2022. The new concept is tailored to the busy, on the go, fast-paced commuters who are looking to grab a snack or meal quickly. Patrons simply enter the store using the Amazon shopping app. Once you’re in the store, you can grab the products you want and go! There are essentially no lines or checkout. Some of the product...

Read More
Wawa Charts Massive Growth Strategy 11
By: Jeff Dervech - April 27, 2022 Wawa Charts Massive Growth Strategy

The convenience store retailer, Wawa Inc. is planning major growth and adding hundreds of new locations that will connect its stores along the East coast and into Florida. With over 1,000 stores already, the chain is planning to open an additional 1,800 locations by 2030. Wawa is looking to fill the void of stores between Virginia and Florida with expansion into new states. The store will build a few different concepts, one being “traditional,” which...

Read More
Inflation has the middle class already planning restaurant cutbacks, study finds 12
By: Jeff Dervech - April 27, 2022 Inflation has the middle class already planning restaurant cutbacks, study finds

With the rise of inflation, speculation is whirling as to how often consumers will continue to eat out at restaurants due to increase in prices across the board. One recent study is now proving this to be true. Middle income Americans are worrying more about their budgets now than they ever have before, reviewing the costs of all items that they elect to spend their money on. This is a direct impact from the recent...

Read More
Walgreens turns to robots to fill prescriptions, as pharmacists take on more responsibilities 13
By: Jeff Dervech - April 19, 2022 Walgreens turns to robots to fill prescriptions, as pharmacists take on more responsibilities

With the shift in consumers buying so many goods online, Walgreens was challenged to stay competitive in the pharmaceutical sector and is changing how it fills prescriptions to be more efficient. Walgreens has opened one of its first micro-fulfillment centers in Texas to fill prescriptions using robotic arms. Within this facility there are approximately 220 employees including pharmacist’s that fill roughly 35,000 prescriptions per day. Walgreens plans to open 22 more fulfillment centers throughout the...

Read More
Investment Activity in Automotive Net Lease Assets Speeds Up 14
By: Jeff Dervech - April 19, 2022 Investment Activity in Automotive Net Lease Assets Speeds Up

The automotive net lease market is not slowing down. Retail tenants that include an auto related use are much more resistant to e-commerce, essentially recession proof, and are considered to be very stable and secure users of retail space. With close to 282 million cars on the road in the United States, car services and auto part businesses are essential to consumers.  “On average, American’s drive 12,000 miles each year and spend 1.5 percent of...

Read More
The Past, Present, and Future of Fast-Food Drive-Thru 15
By: Jeff Dervech - April 7, 2022 The Past, Present, and Future of Fast-Food Drive-Thru

Drive-thru lanes have been around for decades and not much has changed. However, since the Pandemic, many restaurant tenants single handedly witnessed drive thru lanes and take out operational components as lifelines to keeping their businesses afloat. Due to this, more restaurants are interested and desire to add drive-thru lane components to their current prototype and future expansion plans for customer convenience and the enhancement of the overall experience.  “According to the NPD Group, drive-thru restaurant...

Read More
Ghost kitchens could be a $1T global market by 2030, says Euromonitor 16
By: Jeff Dervech - March 31, 2022 Ghost kitchens could be a $1T global market by 2030, says Euromonitor

Ghost kitchens are a popular concept that have been on the rise even since before the pandemic. Now, with changing consumer demand, labor shortages, as well as the advances in technology, Ghost kitchens are thriving.   One of the main drivers of the ghost kitchens concept prior to the pandemic was that it involved less overhead due to the smaller kitchen only footprint and virtually no employees except kitchen staff. This ghost kitchen food model allows...

Read More
Growth in New Types of Health and Wellness Tenants Drives Retail Leasing Activity 17
By: Jeff Dervech - March 29, 2022 Growth in New Types of Health and Wellness Tenants Drives Retail Leasing Activity

The rising increase in preventative medicine and the awareness surrounding people’s desire to keep healthy has led to the growth of many new health and wellness concepts that are finding homes within neighborhood retail strip centers. These non-traditional “med-tail” concepts include alternative medicine, acupuncture, massage therapy, cryotherapy and physical therapy. Instead of renting space within healthcare facilities, health and wellness tenants have been strategically positioning themselves in highly visible, high traffic shopping centers. Med-tail tenants...

Read More
Store closures slowed after a pandemic shakeout. Now Dollar General, Warby Parker and others see new value in stores 18
By: Jeff Dervech - March 16, 2022 Store closures slowed after a pandemic shakeout. Now Dollar General, Warby Parker and others see new value in stores

An interesting trend we are closely watching, is the growing list of direct-to-consumer retailers that started their businesses online and are now adopting physical stores to reach new shoppers, boost profits, and drive brand awareness.   One retailer who plans to hit the ground running, opening three stores in Massachusetts this year, is Wayfair. They had tremendous success in 2020 with consumers wanting to enhance their homes during the Coronavirus Pandemic. Wayfair’s sales rose 55% from...

Read More
Seven Trends Driving Commercial Real Estate in 2022 19
By: Jeff Dervech - February 23, 2022 Seven Trends Driving Commercial Real Estate in 2022

Promise is on the horizon! The commercial real estate environment remains favorable in 2022. Investors are choosing real estate and propelling into the market in an effort to diversify their portfolios for many different reasons which include inflation, the volatile stock market, and the low interest rate environment for debt.  Below are a few highlights.  Significant capital and available debt will contribute to another year of growth. “ Preqin reported commercial real estate funds collected over $152.2...

Read More
Menu Price Inflation Reaches Level Not Seen in Decades 20
By: Jeff Dervech - February 16, 2022 Menu Price Inflation Reaches Level Not Seen in Decades

Supply chain shortages and labor challenges have put increased pressure on restaurants across the nation. According to the Bureau of Labor Statistics, the food away from home index rose 6.4 percent in 2021 which is the highest increase since 1982. In order to handle these pressures, restaurants such as Del Taco and 4River’s Smokehouse have launched special “Inflation Menu’s,” which showcase a variety of options with better meal values.   With food and paper-goods costs rising...

Read More
Tenant Outlook: Fitness Sector Jumps Back into Expansion Mode 21
By: Jeff Dervech - February 11, 2022 Tenant Outlook: Fitness Sector Jumps Back into Expansion Mode

During the Pandemic, fitness centers faced very trying times with shutdowns across the nation. Along with pent up-demand to go out in public again, the “great reopening” of 2021 has brought a wave of new fitness enthusiasts who feel safer with more people vaccinated. In addition, consumers are learning to live with the new “normal” with COVID-19 present in society. Global fitness franchise F45 is almost doubling its locations. It has more than 3,200 franchises...

Read More
Old Restaurant Chains Get a Second Look from Quarantined America 22
By: Jeff Dervech - April 25, 2020 Old Restaurant Chains Get a Second Look from Quarantined America

Pizza Delivery companies are busier than ever! As people are forced to stay at home, many are turning to decades old pizza and chicken wing chains for food delivery. Many of these chains are hiring employees as fast as they can. Papa John’s, Domino’s and Little Caesars are all adding help to assist with the growing demand. With the delivery infrastructure in place, these retailers are setup and prepared to execute during a time like...

Read More
What Retailers Will Be Left Standing After the Coronavirus Pandemic Ends? 23
By: Jeff Dervech - April 17, 2020 What Retailers Will Be Left Standing After the Coronavirus Pandemic Ends?

The retail environment and the world economy remain in a state of flux. As local communities across the country “shelter in place” and all businesses deemed “non-essential” close their doors, the shopping center sector has been thrown for a major curveball. Essential retail is thriving as “daily need” uses remain to be open and busier than ever. Grocery stores are noticing a 50-100% uptick in business, drugstores are not able to keep products on shelves...

Read More
Restaurant Prospects in 2020 24
By: Jeff Dervech - March 18, 2020 Restaurant Prospects in 2020

The restaurant sector will continue to see growth in 2020. Over 90% of American adults report that they enjoy going to brick and mortar restaurants, according to Hudson Riegel of National Restaurant Association. Restaurant concepts such as craft breweries, entertainment, chef driven restaurants and fast casual giants continue to be active and seek to lease space. Growth within the sector remains to be moderate but steady, as top chains are being very methodical and strategic...

Read More
Leasing Tips based on Restaurant Trends 25
By: Jeff Dervech - March 16, 2020 Leasing Tips based on Restaurant Trends

Healthy fast causal concepts continue to be on the rise and pair as a great use in a shopping center with other health-oriented retailers. As consumers seek out food retailers that offer healthy food options, concepts styled around the “Chiptole” bowl blueprint continue to be in high demand. Retailers have followed suit and are beginning to see success of their own. Panera for instance, implemented both a Baja and Mediterranean bowl last fall and have...

Read More
Target Poised to be a Top E-Commerce Player in 2020 26
By: Jeff Dervech - March 4, 2020 Target Poised to be a Top E-Commerce Player in 2020

Target is leading the charge and continues to benefit for its investment in both digital and brick and mortar assets. As Target continues to slowly grow its new store count, renovate existing units and make investments into its digital footprint, the company is setting itself up to be a fierce force in this new age of retail. This retailer is the poster child to other retailers and is a model that others should follow to...

Read More
How Restaurants Use Real Estate in the age of delivery and takeout? 27
By: Jeff Dervech - March 2, 2020 How Restaurants Use Real Estate in the age of delivery and takeout?

According to a National Restaurant Association survey, nearly 60% of restaurant interactions now are for off-premises dining. 90% percent of consumers buy takeout at least once monthly. “Digital platforms have made it very easy to order online in a seamless way from these various restaurants, so it has increased traffic quite a bit,” said James Cook. 79% order delivery directly from restaurants and 53% order through 3rd party apps such as DoorDash or Grub Hub....

Read More
Bank Branches Go Newer and Smaller 28
By: Jeff Dervech - February 27, 2020 Bank Branches Go Newer and Smaller

The banking industry has changed tremendously over the last 10 years. From large rollout programs by different banks to capitalize on markets in establishing brand with a brick and mortar presence to purely technology driven initiatives with a turn towards focusing on efficiencies. As of late, here are the 5 bank branch trends occurring in the retail sector. Branch bank consolidation continues; 3,164 branches closed last year. The biggest institutions are closing the most branches;...

Read More
New Retailers, New Opportunities in Open-Air Centers 29
By: Jeff Dervech - February 24, 2020 New Retailers, New Opportunities in Open-Air Centers

“Tenant Mixes in 2020 differ from Anything Consumers have seen since The Dawn of the American Downtown.” Landlords are discovering and reaping the benefits of backfilling former vacant retail spaces by way of some recent closures, leading to higher returns and a more powerful overall diversified tenant roster. By way of examples include, RPAI filling a former Pier 1 store with a Trader Joes at Shoppes at Union Hill as well as the replacement of...

Read More
Simon Property Group To Acquire Taubman for $3.6B 30
By: Jeff Dervech - February 19, 2020 Simon Property Group To Acquire Taubman for $3.6B

Simon Property Group has negotiated to purchase an 80% stake in the Taubman Realty Group for $3.6 million in cash, expecting to close in mid-2020. Simon will be acquiring Taubman’s common stock for $52.50 per share and one-third of its ownership interest, with Taubman still remaining a 20% partner. Taubman’s property portfolio will continue to be managed by its existing executive team being led by the CEO Robert S. Taubman. Simon Properties claims to enhance...

Read More
Mark Zandi on the Real Estate Economy in 2020 31
By: Jeff Dervech - February 17, 2020 Mark Zandi on the Real Estate Economy in 2020

Mark Zandi, chief economist at Moody’s Analytics, gives some insight on what he predicts will occur in 2020 in the real estate economy. Views on job growth, trade wars, presidential election and its impact on the economy. Interest rates are projected to remain relevantly stable with neither an increase nor decrease expected in 2020 and the next anticipated move by the Fed is probably to raise rates in approx. 12 months (2021) in order to...

Read More
Vitamin Shoppe testing inside LA Fitness 32
By: Jeff Dervech - February 12, 2020 Vitamin Shoppe testing inside LA Fitness

The Vitamin Shoppe opened 300-square-foot shops inside 9 LA Fitness health clubs. These in-gym shops serve up sports-nutrition products and on-the-go healthy snacks and beverages, as well as vitamins, minerals and supplements. The Vitamin Shoppe pays rent on the shops and employs its own salespeople. The companies are monitoring the format through March to determine whether to open more. One location is in Union, N.J., and two are on Long Island, in Farmingville and Huntington...

Read More
Abercrombie & Fitch Says It’s Willing to Walk Away from Any Mall 33
By: Jeff Dervech - February 10, 2020 Abercrombie & Fitch Says It’s Willing to Walk Away from Any Mall

Retailers continue to shrink their footprint to right size their stores as they position themselves for the future. Omnichannel is a must and retailers must look for ways to condense and maximize their brick and mortar footprint all the while creating and growing an online base. Customers want both the ability to purchase in store as well as the ability to buy online. This move by Abercrombie is one that you are seeing by majority...

Read More
Looks like more Properties will Trade in 2020 34
By: Jeff Dervech - January 29, 2020 Looks like more Properties will Trade in 2020

Former Toys R Us real estate update! New York based firm, Raider Hill, was tasked back in mid-2018 as the exclusive real estate advisor to the Toys R Us bankruptcy estate. The company was assigned the leasing, redevelopment and disposition of approx. 320 vacant big boxes across 46 states. In less than 2 years, Raider Hill’s portfolio of former Toy R Us stores available for sale or lease had dwindled from 320 stores (15.5 million...

Read More
ICSC kicks off 2020 Congressional Fly-Out Program 35
By: Jeff Dervech - January 27, 2020 ICSC kicks off 2020 Congressional Fly-Out Program

From issues which include fixing the Qualified Improvement Property (QIP) glitch, opposing legislation that would tax carried interest as ordinary income, restoring Section 118 income tax exemptions, changes to beneficial ownership reporting requirements and ADA lawsuit reform. ICSC members from around the country travel to visit with Members of Congress in their home states to create interactions outside of DC, build long term relationships in a more personal setting and highlight the breadth and scope...

Read More
Regional Coffee Chains are Growing 36
By: Jeff Dervech - January 12, 2020 Regional Coffee Chains are Growing

Coffee chains continue to grow and work to obtain market share from the already well-known mammoths! The coffee industry overall has evolved over the last 50 years. For decades, Americans obtain their daily dose of coffee from a local diner or café then to have evolved over the years to more corporate known options such as Starbucks, Dunkin and Tim Hortons. Now, more and more regional players are creating a craft product and a custom...

Read More