© 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
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.