click to call

Top Trends Shifting Retail in Commercial Real Estate

The forecast for retail in commercial real estate is undergoing significant shifts, influenced by various factors and trends. Retail Commercial Real Estate is sure to be top of mind at the upcoming annual ICSC Las Vegas conference, for details on the conference,  ICSC Las Vegas is the largest commercial real estate conference every year getting top professionals, dealmakers, and innovators together from around the world to elevate and shape the retail marketplace. The outlook is unpredictably positive, even Mike Sladich, Regional Managing Director at Northmarq, recently noted distressed opportunities in the market have not materialized as anticipated, contrary to expectations.

In addition to the following trends in the current and projected retail landscape, AI (artificial intelligence) is set to reshape the industry (like all industries):

Top Retail Trends

E-commerce Impact: The continued rise of e-commerce has reshaped retail dynamics, leading to increased competition for traditional brick-and-mortar stores. Many retailers are adopting omni-channel strategies, blending online and offline experiences to cater to changing consumer preferences.

Adaptation and Innovation: Successful retail spaces are evolving to offer unique experiences that cannot be replicated online. This includes experiential retail, curated pop-up shops, interactive displays, and immersive environments that engage customers on a deeper level.

Focus on Convenience: Convenience has become a primary driver for retail success. This includes factors such as location accessibility, streamlined checkout processes, click-and-collect options, and efficient delivery services. Retailers and landlords are collaborating to create seamless customer journeys.

Mixed-Use Developments: Many developers are integrating retail spaces into mixed-use developments that include residential, office, entertainment, and dining components. This strategy enhances foot traffic, creates synergies between different sectors, and fosters vibrant community hubs.

Health and Wellness: The pandemic has heightened awareness of health and wellness, influencing retail trends. There is a growing demand for fitness centers, health-focused stores, organic food markets, and wellness services within retail spaces. Landlords are adapting to accommodate these preferences.

Sustainability: Environmentally conscious consumers are driving demand for sustainable and eco-friendly retail options. Retailers and landlords are incorporating green building practices, energy-efficient technologies, recycling initiatives, and sustainable sourcing into their operations to appeal to this demographic.

Flexibility and Agility: Flexibility is key in navigating retail real estate trends. Landlords are offering flexible lease terms, adaptable spaces, and tenant improvement allowances to accommodate evolving retail concepts and emerging brands. This agility enables retailers to test new ideas and respond quickly to market changes.

Data-Driven Insights: Retailers and landlords are leveraging data analytics and technology to gain insights into consumer behavior, preferences, and trends. This data-driven approach helps optimize marketing strategies, inventory management, space utilization, and customer experiences.

Finally, according to Globest, Mark Sigal, CEO of Datex Property Solutions, pointed to another trend that has transformative potential, AI or artificial intelligence in revolutionizing retail real estate operations. “With various facets of portfolio management, including leasing, property management, facilities management, asset management, and investment management, generating substantial amounts of data, AI is poised to streamline processes, he says. By optimizing strategies, coordinating stakeholder actions, and monitoring critical events, AI promises to reshape the industry, ultimately leading to enhanced retail experiences.”

Overall, while the retail sector faces challenges, there are also opportunities for innovation, adaptation, and growth. Successful retail in commercial real estate will continue to evolve by embracing technology, customer-centric strategies, sustainability practices, and collaborative partnerships that enhance value for all stakeholders.

We encourage all sectors of commercial real estate, from retail, industrial, office, multi-family, self-storage, hospitality, etc. to perform bi-annual property inspections to ensure buildings are in good condition structurally. Below are photos of a recent seismic retrofit we performed in a retail space during off hours, leaving the tenants undisturbed as if we never entered their workplace and performed construction work.

Work Performed After Hours 

Space/ Business Returned Back to Normal

We are the Seismic Solution Specialists with over four decades of experience performing seismic retrofits and structural repairs. We have experience in all types of buildings across all commercial real estate sectors, especially in occupied spaces with ongoing tenant/ business operations. For more information or questions contact us We service five states, California, Washington, Oregon, Nevada, and Utah.

Posted Under: Commercial & Industrial Real Estate