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Page 10 — Retail Properties Quarterly — February 2017
Market Trends
Hungry for
Restaurant Space?
WE HAVE IT!
This document has been prepared by Colliers International Denver for advertising purposes only. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, no warranty or
representation is made of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.
CONTACT:
JAY LANDT
303 283 4569
JASON F. KINSEY
303 283 4598
LISA VELA
303 283 4575
BRADY KINSEY
720 833 4618
FOR SALE - 10,368 SF
FREESTANDING RESTAURANT
9101 Kimmer Dr. | Lone Tree, CO
FOR SALE - 4,968 SF
FREESTANDING RESTAURANT
4490 Peoria St. | Denver, CO
FOR SALE
ICONIC BOULDER RESTAURANT
Call for Details
FOR LEASE - 2,706 SF
END-CAP RESTAURANT SPACE
Valle Vista
104th & Federal Blvd. | Westminster, CO
FOR LEASE - 10,270 SF
END-CAP RESTAURANT SPACE
Sheridan Crossing II
120th & Sheridan Blvd. | Westminster, CO
FOR LEASE - 7,176 SF
FREESTANDING RESTAURANT
7850 Sheridan Blvd. | Westminster, CO
*Other opportunities available.
A s we all have witnessed,
especially of late, the retail
real estate market contin-
ues to evolve through the
impact of the internet. Major
retailers with decades of success
and previously known as some of
the most successful companies are
now being crushed by retailers that
had the foresight
to create or sus-
tain their business
using the internet.
What was once an
ideal investment
in a center with a
clothing store or
electronics retailer
as the anchor is
now proving to be
a risky decision.
As a real estate
investor, you have
to ask, what is a
national credit? Is
there a use that does not carry with
it significant financial risk?
The face of retail is forever
changed, big-box retailers, depart-
ment stores and specialty mall
retailers are shutting doors, closing
locations or going out of business
entirely. Retailers that are surviving
this new norm are those that are
focusing on the opportunities cre-
ated through the internet. Do they
really need brick-and-mortar space?
The traditional tenant mix at a retail
property now has a tremendously
different look, as you see more ser-
vice tenants filling the spaces once
filled by goods providers.
Successful retail real estate inves-
tors are identifying needs-based
centers to invest in and internet-
resistant tenants to place in their
existing properties. These tenants
include businesses such as dry
cleaners, dentists, veterinarians and,
most frequently, restaurants. Histori-
cally, retail properties may have con-
tained restaurants that accounted
for 10 percent of the shopping cen-
ter. Now it is common to see a retail
property with 40 percent or more of
the tenants selling food or a 100 per-
cent food-based retail specialty strip.
This shift in the market has created
a significant financial burden on
landlords and tenants, given the fact
that restaurants continue to be one
of the most expensive build-outs in
retail real estate.
So, what does the retail investor
do now? The decisions by landlords
to lease to a certain tenant are no
longer based on just the current
creditworthiness of the specific ten-
ant, but now require a landlord to
strongly consider the sustainability
and viability of the tenant’s busi-
ness when considering the internet.
While consumers continue to desire
a convenient, easy shopping expe-
rience, entrepreneurs will explore
ways to fulfill that demand. The one
thing we know is that no business
is immune to ever-changing tech-
nology, as evidenced by the recent
fulfillment of a customer’s order
at 7-Eleven with a drone delivery.
Remember the iPhone is only 10
years old, technology is driving com-
merce more today than ever before
and will continue to do so with the
evolution of purchasing power at the
consumers’ fingertips. The consum-
er is in the bull’s-eye of this change,
first the malls are impacted, next
the big-box stores and then?
Some businesses, such as auto-
motive repairs, community-centric
retailers and food service, appear to
be the least impacted at this point.
At least, for now.s
Joel A.
Meranski
Asset manager,
Western Centers
Inc., Denver
Foothill Green Shopping Center in Littleton features many internet-resistant tenants, including two restaurants, a convenience store
with gas station, hair salon, liquor store, pet-grooming business, taekwondo studio, insurance company and gaming center, among other
businesses.