CREJ

Page 2 — Retail Properties Quarterly — February 2021 www.crej.com Contents Letter from the Editor I n the midst of the holiday sea- son, reports on consumer spend- ing seemed muddled. However, a report from the National Retail Federation frommid-January sheds light on the overall numbers – it turns out that 2020 holiday spend- ing was one season for the record books. Spending during November and December grew 8.3% over the same period in 2019 to $789.4 billion. Six out of the nine retail categories saw gains. However, the leading category was online and other nonstore sales, which was up 23.9%. The other retail sec- tors that reported year-over-year increases included building materials and garden supply stores; sporting goods; grocery and bev- erage; health and personal care; and furniture and home furnishing. Mean- while, three sectors saw retail sales decrease: clothing and clothing acces- sory stores (14.9%); electronics and appliance stores (14.4%); and general merchandise (0.1%). Interestingly, holiday-related spend- ing increased the most in the third and fourth weeks of December, which was too late for online orders to be deliv- ered on time for Christmas, so many consumers took advantage of order- ing something online and picking it up in store or via new curbside pickup options, the report states.This option has been evolving and improving over the course of the past year, and this trend is explored throughout this issue. One important aspect for retail prop- erty owners or managers with tenants seeking out these kinds of services is how lease provisions need to change. Considerations are explored on Page 13. The NRF report attributes the increase in spending, which was more than double the 3.5% average holiday increase over the previous five years, to a variety of factors. “Despite unprecedented challenges, consumers and retailers demonstrated incredible resilience this holiday sea- son,” said NRF President and CEO Matthew Shay. “Faced with rising trans- mission of the virus, state restrictions on retailers and heightened political and economic uncertainty, consumers chose to spend on gifts that lifted the spirits of their families and friends and provided a sense of normalcy given the challenging year,” he said.The assoc- tion believes President “Biden’s stimu- lus proposal, with direct payments to families and individuals, further aid for small businesses and tools to keep businesses open, will keep the econo- my growing,” the report states. The report also cites consumer encouragement of vaccine news as a potential indicator that this pent-up spending could continue.This would be great news for brick-and-mortar retailers as well as restaurants, which did not benefit from the holiday sales bump but are getting creative to thrive post-pandemic. A number of pandem- ic-induced restaurant trends that are here for the long term are explored in this issue as well. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext. 104 Holiday buying prompts hope Net-leased properties remain fluid amid uncertainty James Rassenfoss and Drew Isaac Northern Colorado retail fares well amid pandemic Melissa Moran Denver area retailers riding the pandemic wave Anthony Palumbo Colorado is being flooded by net-lease demand Hayden Salvas Retail asset investment may present opportunity Jason Schmidt Retail lending options forecast to continue improving Peter Keepper Curbside pickup prompts lease provision changes Tal Diamant and Elizabeth Bhappu Kudla Reevaluating retail trends for a post-pandemic world Alex Staneski Stakeholder cooperation helps all involved Brian Pesch A few silver linings for Denver’s restaurant industry Paul Nora Mindful design solutions for pandemic challenges Cecilia Hanover 4 6 8 10 11 12 13 16 17 18 19