Page 4
— Retail Properties Quarterly — November 2016
CONTENTS
Letter from the Editor
Retail rent growth still enjoying long runway Justin Krieger and Tom Ethington New developments propel Springs’ retail John Winsor Retail follows 3 trends in Northern Colorado Ryan J. Schaefer Examining the forces behind record sales volumes Matthew Henrichs Life companies shift focus for new year Michael Salzman Why retail property owners should use Co-PACE Grant Nelson and Keirstin Beck Auto retail adapts to changing consumer habits Michelle Z. Askeland Retail helps bring an urban feel to suburbs John Livaditis New shopping habits force retailers to evolve Tom Rockstad Park Meadows thrives by bucking national trends Pamela J. Kelly Insights into Arvada Marketplace’s redevelopment Erin Bremen 6 8 10 12 14 15 16 18 20 21 22F
ood and beverage outlets are
among the fastest-growing cat-
egories in retail centers, accord-
ing to a CBRE Group national
report. Several other pieces
of this report about restaurant retail
caught my attention as well.
Restaurants have fared better than
any other retail type
since the reces-
sion, according to
the report. And,
given that last year
the government
reported that restau-
rant sales surpassed
grocery sales for the
first time in the U.S., it makes sense
that this industry is thriving.
Millennial dining habits support this
growing demand, but it was surprising
to see that older generations actually
spend more money overall at res-
taurants than millennials.The report
notes that “This implies more growth
for restaurants as millennials age and
earn more.”
Following this logic, it also makes
sense why CBRE selected Denver as
one of the secondary urban markets
that is best positioned for restaurant
spending
growth.Wecertainly are
leading the way when it comes to fast
casual.The number of quick-service
restaurants in Denver increased by 67
percent in 2015 compared to the previ-
ous year, according to CBRE research.
In the report, Denver joined Min-
neapolis, Baltimore and Philadelphia
as the best-positioned cities for res-
taurant spending growth, thanks to
reported high job, income and popula-
tion growth in each city.
I found the four up-and-coming res-
taurant formats identified in the report
to be extremely interesting, because
Denver has already embraced many of
them. All four formats appeal to mod-
ern diners looking for diversity, conve-
nience, uniqueness, relative affordabil-
ity and experiential focus, the report
stated.The formats include:
• Food trucks
• Food halls
• Celebrity-chef restaurants
• “Grocerants” – grocery stores that
offer prepared foods and made-to-
order meals.
While restaurants still are a gamble
– thanks to high failure rates and sub-
stantial tenant improvement require-
ments – the report identified one way
retail owners are taking a chance.
“One solution CBRE has seen prop-
erty owners undertake is to forego
immediate repayment of build out
costs or to keep base rents low in
exchange for an ownership stake in
the restaurant,” the report said. “In that
approach, the property owner received
a share of that restaurant’s profit even
after the initial investment is repaid,
thus providing the property owner a
return on its assumption of risk”
I’m curious how Denver restaura-
teurs, and those who rent to them,
will continue to be on the forefront of
dining experiences, embracing new
formats while also celebrating what
already works well.
Whether you love the fast-casual
environment, love to explore hip new
spots or love to pick your meal from
whichever truck is parked nearest you,
one thing is certain – anyone living in
Denver who is not exploring the res-
taurant scene is missing out. Happy
dining!
Michelle Z. Askeland maskeland@crej.com303-623-1148, Ext. 104
Demand for dining outdesigning
excellence
creating
value
developing
opportunities
full service architecture and engineering
denver | fort collins | colorado springs | 303.692.8838
|
www.f-w.com Denise Leal | 303.407.6724 |dleal@f-w.com 1/2 page - first available right hand page