CREJ

Page 22 — Retail Properties Quarterly — May 2021 www.crej.com profits, hiring and capital expendi- tures. With a score of 50 indicating a neutral outlook, panelists on the current report gave an overall LBCI of 64.4, up from 47.9 the previous quarter. Looking ahead to the third quarter, those numbers jumped to 68.8 – the highest overall score in the 19-year history of the index. Confidence in the state economy showed the strongest gains, increas- ing from 46.9 to 68.3. CU cites posi- tive developments encompassing the pandemic such as increasing vaccinations and easing restrictions as the biggest factors behind the optimistic sentiments. Consumer sentiment also is strong. An April Groupon survey indicates that 75% of Americans are ready to experience the “Joy of Doing the Ordinary,” a longing to return to normal activities and social contact, including going out to eat or to the movies. The study also showed an overwhelming interest in continued support for local merchants. From a jobs perspective, The Con- ference Board reports that by the end of the year around 4.5 million more jobs could be added to the economy, and the unemployment rate is expected to drop well below 5%. Leisure and hospitality, with a concentration on restaurants and bars, were the top industries with open positions at the close of April. Colorado’s comeback also looks very promising. The Connecting Colorado job board reported 19,353 job listings in retail and 3,575 in the food preparation and serving-related category during the third week of April. n Restaurant demand. Our company anticipates restaurant demand to be significant at press time and in the months ahead due to easing restric- tions and the warmer weather that always fuels socialization. During a recent trip to Arizona, a state that began to open up earlier than Colo- rado, I encountered long restaurant waits and full dining rooms and patios. Spending in restaurants and bars led to a 9.8% retail sales gain in March when economists had expect- ed an increase of only 6.1% based on people receiving their stimulus checks. And casual-dining CEOs have referred to indicators of pent- up demand throughout their most recent earnings calls. The National Restaurant Associa- tion’s 2020 Annual Report details a multitude of unfortunate pandemic impacts but also includes a fine look forward. More than ever, it says, people are making plans to eat on premises. Equally positive, diners indicated their interest in being able to visit in person the restaurant locations from which they ordered to-go food. And restaurant patrons with disposable income, as well as middle-income diners, are ready to spend on meaningful culinary expe- riences. Thankfully, Denver area restaurant owners are reporting an encouraging sight: Their regular patrons, some of whom they haven’t seen in a year, are returning. n Pandemic fuels restaurant changes. Restaurants spent much of 2020 in survival mode and, sadly, too many closed. With ever-changing regula- tions, operators tweaked or complete- ly overhauled their business model to stay open, whenever possible. Meanwhile, outdoor dining expanded into parking lots, sidewalks and city streets. The city of Denver is enabling restaurants to retain their expanded outdoor service areas through October 2022. We appreciate the addition of al fresco dining as it represents real neighborhood-level activation. Curbside pickup, enhanced deliv- ery and payment options, and meal kits and subscriptions are among the innovations we saw during the pandemic period. Rapid operator investments in technology have been significant for reservations, point of sale and food-ordering systems. In Denver, several non-quick-service res- taurants have added pickup windows or expanded with new locations that include drive-thru options. Nationally, the phenomena of QSRs inside of other retailers may dimin- ish due to changing pandemic shop- ping patterns. McDonald’s is closing hundreds of outposts inside Walmart stores based on consumer preferences for drive-thrus, while new-builds of Burger King are being designed cre- atively to satisfy increased customer preferences for in-car dining with a modernization of Sonic Drive-In’s business model. n Technology is the brand. We believe many of these pandemic business developments will remain, but also we are seeing emerging technologies that will change the core of the busi- ness. We are in the midst of a due dili- gence period with a new coffee con- Continued from Page 1 Market Forecast SafeGraph Coloradans are returning to in-person experiences, as measured by cellphone foot traffic data aggregated by SafeGraph. More than any other activity, Centennial State residents want to head to the movies. Gyms, restaurants and grocery stores are the next most popular destinations.