Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
Today’s consumers want to ensure that their purchase makes a difference. Buying from a main street shop offers a connection to local business owners and artisans and gives consumers a real sense of their impact on their community.
According to a report from Reis, U.S. retail vacancies were at 10.2% at the end of 2018, a marginal increase from 10.0% a year earlier. Current market trends have challenged retail owners and investors with vacancies in retail spaces on Magnificent Mile, Fifth Avenue, and Main Street.
In today’s business climate, accurate and relevant information is crucial for commercial real estate investing success. You could be in real trouble if you don’t know the local market. Despite this fact, commercial real estate is a sector favorite among investors, with its relatively strong returns with only minimal to moderate risk.
We have been barraged by negative headlines this past year, of which company has filed for bankruptcy, or which mall is now a ghost town. However, it seems that experts in the industry think the retail sector is simply in a transitionary period where evolution is extremely important.
A few years ago, the grocery industry seemed like an untouchable horizon. How could e-commerce bore its way into an industry with such perishable, fragile, and heavy items? Impossible! Then, Amazon, as it often does, introduced Amazon Pantry and Amazon Fresh.
Amazon has been an incredibly innovative force. In the past few years, they have revolutionized the e-commerce market, grocery shopping, checking out, and even the shipping industry. Now, they have moved on and targeted airports. They are looking into bringing their checkout-less stores to airports.
No longer just a stand-alone structure looming in a too-large parking lot — they have amenities such as restaurants, hotels, shopping, clubs, kid zones, and more. But how did we get to this point, and why has this trend become so successful?
If you take a look around, it’s easy to see that online retail has become increasingly competitive. Gaps and niches in the market are filled, and there seems to be a shiny, new brand catering to every market segment out there.
It comes as no surprise that many brick-and-mortar retail outlets have reported an overall dip in sales, thanks to the prevalence and mass appeal of online shopping. After all, being able to skip the traffic and parking and the long lines at checkout is hard to turn down.
It seems that everywhere you look today, avoiding hearing or reading stories about Millennials is almost impossible. We have all heard they are making huge strides and taking the lead in business, politics, real estate, philanthropy, and more. But what you might not have heard yet is that Millennials are even shaping your grocery store.