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Trends Shaking Up the Retail Location and Site Selection Process
From The Buxton Co
The retail location and site selection process has changed in numerous ways this year due to trends that have caused disruption in the retail industry. It appears that these trends, centered around consumer behavior changes and technological advances, are likely here to stay and will continue to impact how businesses choose their next new location.
Read on to learn about some of these retail real estate trends and their implications on the retail site selection process.
Experiential and Mixed-Use Retail
One way that this has affected the retail real estate industry is that companies are starting to open smaller locations with less inventory and more room for experiential events and promotions. This pushes more sales to the online space, which is one of the driving forces behind the trend.
In new retail development, it will become more common to see a wide variety of tenants including medical offices, retail, restaurant, fitness and experiential retailers like aquariums, bowling alleys, etc. This allows people to do many things in one centralized location.
Additionally, malls across the country are starting to implement an experiential approach. They are also finding creative ways to utilize a resource they have that some new developments do not have: ample parking. Itís not uncommon to see a mall hosting a concert, pumpkin patch, carnival, etc. in their parking lots to encourage shoppers to spend time at the mall.
Pop-Up Stores and Shorter Lease Terms
Pop-up stores require very short lease terms, but retailers are pushing for shorter lease terms in non-pop-up locations as well. In the past, it was common for retailers to be locked into 20-year lease terms. That just is not the case today. Retailers are on the hunt for shorter lease terms to accommodate the tumultuous retail environment. Landlords are also jumping on this trend to fill vacant spaces left by recent store closures.
Both pop-up stores and shorter lease terms mean the real estate team must play a more active role in reevaluating existing sites and determining whether to stay or move to a new location.
The Bottom Line
If you have an opinion on the retailing or retail real estate industries, take this opportunity to share your thoughts. Articles should run between 400 and 800 words. Topics can, be general in nature, consumer observation or specific to retail concepts or practices.
Articles will be posted for at least one week and will then be placed in the Editorial Archives. All articles submitted will be read and considered but we cannot guarantee publication. Each published article will carry the submitters byline (if desired) and is a free service to our community.
Article ideas and suggestions are also always welcomed. Contact PVS@PlainVanillaShell.com
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