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— Retail Properties Quarterly — August 2017
www.crej.comContents
Letter from the Editor
T
he acceptance that we are in
the midst of a structural retail
shift is a theme of this issue.
Not only do experts seem to be
in agreement that this evolu-
tion is taking place, but also they agree
that this does not
mean the death of
retail as we know
it. Brick-and-mortar
stores are here to
stay, as long as
they’re willing to
adapt to continue to
cater to a changing
consumer base.
This issue kicks off with a section
about the state of retail. Articles on
Pages 4-14 examine the retail outlook
and share statistics, insights and pre-
dictions for the question on many
people’s minds: Is brick-and-mortar
retail on life support?
The outlook for Colorado is rather
sunny, assuming the types of tenants
occupying this real estate will continue
to change as the market learns a new
equilibrium that embraces more expe-
rience-based retail.
The other articles within this issue
also touch on these evolving customer
needs. From leasing to marketing and
managing, one driving force behind
retailer decisions is how to turn a loca-
tion into a sought-after destination
that draws consumers.
Capital One is trying to do this with
its new real estate locations, Capital
One Cafés.The concept aims to rede-
fine how consumers interact and think
about visiting their bank. Apparently,
this shakeup is overdue. According to a
recent study, 71 percent of millennials
said they would rather go to the den-
tist than go to their bank.
On Page 22, a grocery veteran
addresses the possible impacts Ama-
zon will have on the supermarket
competition. He challenges grocers
to take a page frommovie theaters,
which were threatened by movie
rental stores and streaming options. If
supermarkets can reinvent themselves
into places that consumers want to
visit, the threat of Amazon, or any
other internet-based grocery option,
won’t be that impactful.
And finally, within Colorado’s packed
brewery market, it seems safe to bet
on the ones that offer unique experi-
ences and atmospheres.The article on
Page 20 states that a brewery without
an interesting atmosphere, regardless
of the number of taps it offers, will feel
like any other restaurant and bar – crit-
ically impacting its ability to succeed
in the tight market.
As many of these new shopping
center tenants change their operating
habits to entice consumers, shopping
center owners might want to reconsid-
er certain standard lease provisions, as
attorney Heather Park Meek outlines
on Page 16, in order to best protect
their assets.
Michelle Z. Askeland maskeland@crej.com303-623-1148, Ext. 104
Questionof the issue: Isbrick andmortar on lifesupport? Pipeline, employment growth are promising Cameron Flint Denver market offers support for retail opportunities Drew Isaac It’s all about food and fitness in the Pikes Peak region Tiffany Colvert Store closures result from more than just internet Stuart Zall and Seth Goldstein Millennials want evolved malls, not no malls Larry Thiel and Brian Landes Reimagine the uses for big-box vacant spaces Gannon Roth Resurrecting retail: Leasing issues to consider Heather Park Meek Designing banking locations for the digital age Matt Rowan Craft brewing makes big impact on retail real estate Ray Rosado and Pamela Flora Supermarkets must enhance shopping experience Howard Gerelick Centers need to differentiate from e-commerce Danaria Farris McCoy Help your quick turnaround TI projects succeed Corey Nook 4 6 8 10 12 14 16 18 20 22 23 24