CREJ - Retail Properties Quarterly - August 2017
The 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 evolution 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 predictions 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 experience-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 location 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 redefine 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 dentist than go to their bank. On Page 22, a grocery veteran addresses the possible impacts Amazon will have on the supermarket competition. He challenges grocers to take a page from movie 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 experiences 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 – critically 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 reconsider 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.com 303-623-1148, Ext. 104