Shopping Center Business recently sat down with Cynthia Nelson, senior managing director in the real estate solutions practice at FTI Consulting, to discuss the current retail landscape and tips and tricks for tackling big box vacancies. Tell me a bit about your outlook on the retail landscape at current. We’re going through a huge transformation in terms of how consumers buy retail goods and services and it is taking a toll on our shopping centers. Many big box spaces formerly occupied by retailers like Toys ‘R’ Us are going dark. …
— By Bob Kane, director with Franklin Street — In the 15 years I have represented national, regional and local retail and restaurant groups expanding throughout Georgia and Alabama, I have gained valuable insights into important deal terms that are often overlooked. Here is my top five list of critical protections every tenant should be aware of during the Letter of Intent (LOI) and lease negotiation process. Require the Landlord’s Lender to sign a Subordination, Non-Disturbance and Attornment Agreement (SNDA) – A SNDA agreement protects the tenant if the landlord defaults …
— By Martin Zurauskas, Managing Director for nFusion — The perception versus reality of the “demise” of traditional retail has long been disconnected. Much of this disconnect is centered on a misunderstanding of retail’s role in the lives of consumers. Today, the role of retail centers is increasingly based upon giving consumers what they demand — entertainment-focused experiences that they can’t get elsewhere. This goes beyond adding a movie theater or bowling alley. Entertainment finally has a real seat at the table in retail development. So how can developers, owners, and …
— By Greg Miller, Chief Executive Officer and President of Henry S. Miller Cos. — The retail market, both online and in physical stores, is evolving dramatically due in large part to Amazon’s continuing domination of online sales — i.e. the “Amazon effect.” However, there is no retail apocalypse, just ever increasing disruption. Consumer spending is the main driver of our economy. According to ITR Economics, U.S. retail sales for 2018 are expected to be over $6 Trillion, up 5 percent from last year. Overall retail sales rose 6.4 percent …
— By Sheldon Gross, president and CEO of Sheldon Gross Realty — The future of retail-focused real estate is a hot topic, and has been for quite a while. Everyone seems to have an opinion on the proliferation of big-box chains and the plight both of traditional “Main Street” properties and 1970s-era indoor malls. But there’s another component of the retail real estate spectrum that, to date, has received only limited attention in terms of future prospects. I’m referring to the strip malls that dot the American landscape, typically standing …
— By Gary E. Mozer, Principal/Co-Founder, George Smith Partners — Retail financing, both debt and equity, has become a challenge for many owners, developers and investors throughout the U.S. based on negative press about retail, a perception that the internet will take down many tenants and the weak financial condition of a number of large retailers. Though capital markets are strong, many property owners and investors are finding it difficult to identify lenders willing to provide the type of financing they need for their retail developments, acquisitions and redevelopments. Some …
— By Luanne Carleton, FRCH Design Worldwide — Jan Gehl states: “First life, then spaces, then buildings — the other way around never works.” Placemaking is about creating a space for human experiences. In the simplest form Placemaking is about transforming and activating a space into a Place. It is about crafting elements to support activity and foster social interaction, involving the process of matching the right offerings, experiences, and environment. The goal is to create something of value for the community. As designers we can only create the structure for …
Las Vegas is known for many things, with novel, unique experiences being at the top of the list. It is, after all, the Entertainment Capital of the World. As retail experts the world over descended upon the city to learn about providing more experiences that get people off their couches and into their establishments, they were convening in a city that is the ideal case study.
By J. Wickham Zimmerman, Chief Executive Officer, Outside the Lines Inc. A new trend is emerging in retail destinations in response to evolving customer expectations: more public spaces. In these spaces, today’s best designers, developers and owners are incorporating immersive experiences and entertainment attractions with the purpose of drawing guests in, increasing their length of stay and inspiring repeat visits. This emerging trend points to an important question for owners and tenants alike: Are public spaces on track to become retail’s new anchor tenant? Four important drivers fueling the reduction of traditional anchor …
By Chris Karl, design specialist for Ambius With e-commerce continuing to eat away at brick-and-mortar retailers’ business, stores need to find new ways to create meaningful experiences shoppers can’t get online. Retailers that are slow to adapt to this trend are finding the current environment difficult to survive — no matter how established their brand or large their footprint. Many are discovering the value of experiential marketing with a growing number of retailers — including Abercrombie & Fitch and Pandora — incorporating custom scents into their in-store experience. Research backs up …