Retail Space
Michelle Hernandez PA
Retail Space
Commercial Retail Space has been experiencing changes, from growing economy, then COVID, and now hybrid/reopened economy. Retailers have been adapting to more connective social experience both online and in-person. Although people have transitioned back to in-person shopping, retail shoppers are still making 37% of purchases online. As the focus on technology is growing, retailers must adapt to new retail trends and provide more in-person experience to produce strong traffic.
Pros
- 1. High Returns on The Investment – gross rental return is 9-12% on commercial property.
- 2. Longer Leases – Average tenant lease is 3-10years, they stay longer and invest capital into customizing the space.
- 3. No Rates and Other Expenses – Triple Net leases position all expenses on tenant-real estate tax, building insurance and maintenance.
Retail Space Trends 2022
- Selling online is a MUST – shoppers want to be able to buy locally and national anytime regardless of their access to in-person shopping.
- Omnichannel shopping experiences – integration of in-person experience and digital e-commerce experience.
- Technology systems to assist retailers with labor shortages – AI enabled decision support for resilient business.
- 12-24hr Delivery – in store returns option
- Social commerce – Experiences that connect offline and online shopping
