“7 Retail Trends” in Commercial Investment Magazine

You can find “7 Retail Trends to Watch” in the current issue of Commercial Investment Real Estate (CIRE) Magazine, the monthly publication for Certified Commercial Investment Members (CCIM).

Founding partner Gary Ralston contributed these trends for the September/October issue of the magazine.

What’s Next? 7 Retail Trends to Watch

  1. The Internet’s Other Impact. Online sales are not only impacting the retail sector, but the Internet is creating more informed consumers. Well-educated shoppers are causing pressure on retail margins, which translates into pressure by tenants to lower rent.
  2. More Sales, Less Space. The wide range of available technology offers retailers more efficient inventory control and space needs. They are applying the 80/20 rule – 20 percent of their SKUs generate most of their sales and gross margin. The result: Retailers can generate more sales per square foot in less space causing store formats to shrink.
  3. Bigger Players Dominate. The supermarket sector is being consumed by dominant players with larger stores.
  4. National Anchors. In large shopping centers, 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. Second-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. A recent study revealed that service tenants comprised less than 15 percent of total occupancy 10 years ago versus almost 25 percent today.

You can see Gary’s list on page 36 and read the rest of the September/October issue of CIRE Magazine by clicking here.