Friday, March 9, 2018

Taking the Temperature of Retail Real Estate in 2018

NREI Online

In light of recent headlines and store closing realities, it is not hard to surmise that retail is, in many ways, ‘under the weather’ and in dire need of a strong dose of direction and creativity. Credit Suisse predicts, in fact, that 25 percent of the 1,100 enclosed malls currently operating in the U.S. will shutter in the next five years. And though I don’t quite agree with that prognosticating and certainly not for luxury “A” malls in urban areas, there is a cautionary tale to heed—one that must entail a proper balancing act between three primary elements: bricks-and-mortar, e-commerce and delivery.

But isn’t bricks-and-mortar on the way out, you might say? Isn’t the Amazon factor completely destroying the traditional retail model? Not exactly. . . . more