Retail vacancies are not a good thing — unless you’re in the middle of a retail renaissance with a number of forward-thinking tenants ready to take that space. So says Scott Holmes, national director of retail for Marcus & Millichap, who sees opportunities in these empty spaces today.
First, there are the familiar tenants that are expanding. These include junior anchors like TJ Maxx, Ross and Burlington.
Then, there are the newly emerging tenants, including the previously online-only concepts that are expanding into brick-and-mortar. Holmes has tracked 850 digitally native brands that are working on their first storefronts.
With all this activity, competition remains fierce. It’s the fiercest, perhaps, for enclosed malls. While many assume shopping centers are brought down by a slew of vacancies, Holmes notes that is not actually the case. Their demise tends to be due to increased competition from new centers, particularly open-air centers, that are simply stronger performers in that trade area.
to hear more from Holmes about the current and emerging retail market.
This video was created as part of the Retail Insight newsletter by Shopping Center Business, a brief newsletter series leading up to the 2019 ICSC RECon conference and including post-conference video interviews. The videos in the publication are created in conjunction with our content partners, which sponsor the newsletter. Click here to subscribe.