Sector Update: 



© Copyright 2017 by MP Media, LLC

BY:  Ed Beeh, Executive Vice President & Alan Houston, First Vice President, SRS

marks a year of change. 

We have a new President with a real estate 
background, the first interest rate increase in over 
10 years, and despite the relatively strong economy 
– older concepts such as Sears, Kmart and Macy’s 
are struggling and closing stores. 


Retail and the real estate that serves it continues its 


never-ending transition. To cope with the change brought 
about by technology and demographic shifts, many 
retailers are downsizing and repositioning their stores to 
become more efficient, while others are expanding their 
reach with co-branding and/or mergers. 

The growth of online retailing

 continues, but 

brick-and-mortar retailers continue to fight back with 
an online presence. Conversely, many online retailers are 
now moving into retail storefronts, including Amazon, 
Warby Parker, Lumen and Bonobos. Despite the growth 
of delivery services like GrubHub and Blue Apron, 
restaurants and grocery stores are the strongest drivers 
of new retail construction. Even as they incorporate new 
technology such as online ordering and delivery services, 
the majority of their sales continue to be dominated by 
physical interaction with customers.

Alan Houston

Ed Beeh