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 and now sharing offices in Charleston and Jacksonville, FL. 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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