Page 4
— Retail Properties Quarterly — August 2017
www.crej.comState of Retail
Dedicated to Denver.
Through personalized service and unparalleled expertise,
we provide a special kind of banking experience. We offer
commercial and industry lending, SBA loans and commercial
real estate – all with the steadfast focus necessary to help
local business and the community thrive. Stop in and discover
what makes the MidFirst experience truly special.
Cherry Creek
– 101 Cook St.
303.376.3800
Downtown
– 555 17th St.
303.376.5460
University Hills
– 2805 S. Colorado Blvd.
303.376.3840
midfirst.comA
s any retail broker can
attest, the No. 1 question
we are asked these days is,
“What’s the future of the
retail industry?”
When headline after headline pro-
files another store closure or major
e-commerce takeover, it’s easy to
think that the days of brick and mor-
tar are numbered. Fortunately, the
truth is not so simple. It’s true that
traditional retailers are in crisis, dam-
aged by quickly fluctuating consumer
tastes, technological changes, prices
and competition, but many retailers
have been able to thrive in the retail
market of the future.
In the past, if you wanted to buy
anything, brick and mortar was the
only option for consumers. Today,
with the rise of online and omni-
channel retail – brick and mortar is
no longer an obligation; it’s a choice.
Consumers have countless buying
options, which is unprecedented in
the industry. As a direct result, we’ve
seen historic household names file
for bankruptcy and close their doors
because they weren’t able to keep up
within an evolving industry.
More and more, we’re witnessing
a strong initiative to improve the
customer experience within stores
and restaurants. The e-commerce
platform has challenged retailers to
push the boundaries of what they’ve
done in the past and required them
to truly make an effort to under-
stand their customers. Many retail-
ers now are relying heavily on data
and analytics of the target consumer
to select the appropriate locations
and concepts that will cater to their
customer appropriately. They’ve
become more cre-
ative with in-store
experiences, using
different methods
to draw people in,
whether that is in-
store classes, wine
tastings or green
screens/photo
booths.
Looking ahead,
there are several
reasons to feel con-
fident about Den-
ver’s retail market. We’ve witnessed
a steady increase in population year
over year and have benefitted from
major corporate relocations.
The strong construction pipeline is
indicative of developers’ optimism
for the Denver market. Denver is
poised for growth in our urban land-
scape with neighborhoods like Cher-
ry Creek, the River North Arts District,
Lower Downtown, the Highlands and
South Broadway all seeing increased
invested capital and redevelopment.
Denver’s strong population and
economic growth is continuing to
attract retailers from a variety of
industries, including food and bev-
erage, entertainment, grocery and
fitness. One-of-a-kind projects like
the redevelopment of old industrial
spaces into unique, creative retail
concepts (Central Market, the Source
or Stanley Marketplace) are breathing
fresh life into the market and giv-
ing consumers a new reason to get
excited about Denver’s retail scene.
This repurposing and mixed-use
retail trend shows no signs of slow-
ing down. The suburban landscape
remains bullish and retail is follow-
ing the major housing growth in the
north and south parts of the market.
Grocery-anchored retail remains the
most dominant development oppor-
tunity, especially as power centers
take a back seat while big-box retail
changes course.
To answer the big question: Is brick
and mortar really becoming obso-
lete? The answer is no. In reality,
online purchases today represent less
than 10 percent of all retail spend-
ing, according to the U.S Department
of Commerce’s first-quarter retail
e-commerce sales report. Further,
the majority of online purchases
are goods sold by brick-and-mortar
retailers.
At the end of the day, it’s human
nature to be social, want to feel and
test products, try new restaurants
and visit different shops. The big-
gest change in the retail industry is
the retailers themselves. They are
becoming more sophisticated and
site selection is more strategic.
Retailers are making an effort
to understand their customer and
all of their habits so that they can
react appropriately. In lieu of all the
negative headlines, there are a lot
of retailers and restaurants poised
for growth as they evolve to stay
relevant and authentic. Brick and
mortar is not going away, but rather
it is growing into an experience-
driven art form as consumers con-
tinue to evolve.
▲
Pipeline, employment growth are promisingCameron Flint
Associate, CBRE
Retail Services,
Denver
One-of-a-kind projects, neighborhoods, shops and restaurants offer consumers reasons
to still be excited about the Denver retail scene.