Seven Retail Trends to Watch

Courtesy of CCIM’s bi-monthly magazine, Commercial Investment Real Estate (Sept/Oct 2013), Seven Retail Trends to Watch. 

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 Ernie Saltmarsh

Ernie works for Colliers International in the Northeast Florida Investment Services Group. The team includes Robert Selton, Scott Rogers, Ernie Saltmarsh and Adrienne Miller. Ernie works with buyers who are looking to invest in commercial real estate and sellers who are looking to dispose of investment assets. Ernie's background in research, marketing and finance provide the vital skills necessary to serve his clients.

Posted on January 2, 2014, in General CRE News/Reports, Market Reports/Statistics, Shopping Centers/Retailers and tagged , . Bookmark the permalink. Leave a comment.

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