CREJ - Retail Properties Quarterly - February 2018
One of life’s few certainties is change. Change is everywhere around us and it should not be surprising our retail landscape is changing rapidly too. Who in the aviation business would have thought passengers could simply have boarding passes without assigned seats? Who in the automotive business thought five years ago that self-driving cars would be highly likely by 2020? Huge shifts are occurring across almost every type of business as we work smarter and speed of connectivity to our colleagues is instantaneous. We see it in how companies are building their offices in more open, collaborative manners and adding amenities never dreamed of before. All done in an effort to retain the best and brightest. So why should retail be immune? As retail property owners from regional malls to neighborhood grocery-anchored centers renovate, redevelop and re-tenant, some trends in strategy are emerging. Food and beverage along with entertainment are becoming a much larger part of the tenant mix. For example, at Park Meadows, you can valet park your car and just feet away are Yard House and Perry’s Steak House. This makes it easy to enjoy a quick beer or two with buddies at Yard House, stroll over to Arhaus to pick up a couple items and meet your date for a great dinner at Perry’s. A highly efficient lifestyle model! Note: Many malls now are called lifestyle centers … maybe a coincidence, but lifestyle centers are a better description for how we trade as consumers. Retail experiences are daily occurrences rather than a big planned outing.
Entertainment and fitness are other categories seeing tremendous growth in Colorado’s retail sector. Theater chains are adding significant upgrades to their seating and food and beverage options to accommodate the clientele’s desire for a higher level of product. Examples of this can be seen with companies like AMC and Landmark Theatres in our area. Fitness companies of all shapes and sizes are vying to control geography through the Denver metro. A newer center that exemplifies how well this category fits is Cornerstar Shopping Center. The standalone 24 Hour Fitness is a great looking building that blends well with the shopping center. The full parking lot looks great too! Another evolution is retail becoming something not retail at all. As projects are being contemplated, built or redeveloped; multifamily residential, hotel and office uses are a part of almost every plan. Belmar Shopping Center is a great example of this. If current trends persist with e-commerce and the resizing of many retailers, more opportunities to add these integrated lifestyle components will surface in existing centers. One thing that hasn’t changed a bit in retail is it all comes down to the operator. Company culture, training, being fiscally disciplined and being a partner continue to be what separate the best retailers from everyone else. As Bob Dylan said, “We all gotta serve someone.” In retail, you need to wake up and ask yourself: Who am I going to serve today.