7 Retail Trends to Watch

Courtesy of CCIM’s bi-monthly magazine, Commercial Investment Real Estate (Sept/Oct 2013), Seven Retail Trends to Watch.  This is generally NATIONAL in perspective and not CHS specific (e.g., we have a shortage of big boxes to re-lease).

1) Internet’s Other Imact – not only creating online sales competition for bricks-and-mortar stores, but the internet is making consumers much more informed, causing pressure on retail margins, translating into pressure on rents landlords can charge.

2) More Sales, Less Space – requiring more efficient inventory control and space needs.  The 80/20 rule – 20% of the SKUs generate most of some retailers’ sales and gross margins.  Result:  more sales in less space and stores getting smaller to focus on the 20% with the highest margins.

3) Bigger Grocers Dominate.

4) Category Killers – national credit-tenant anchors are winning out over same-category regional and local tenants.

5) Big-Box Woes – large vacant boxes are becoming increasingly more difficult to re-tenant.

6) Exclusive Use – 2nd generation retail space is being increasingly impacted by exclusive-use lease provisions.

7) Service Tenants Triumph – Landlords are making greater use of service tenants to maintain occupancy.  Think call centers, medical, government and schools/universities that have backfilled former boxes and in-line space.

About charlestonCREblog

30 years' in the commercial real estate biz - investment sales, consulting, banker, appraiser, brokerage. Trained in Atlanta and moved to the Lowcountry in 2008. Exclusive listings, buyer representation, and consulting/analysis to help clients make the best commercial real estate decisions.

Posted on January 2, 2014, in Commercial Real Estate, Retail/Retailers and tagged , , . Bookmark the permalink. Leave a comment.

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