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.
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.
4.No Rates and Other Expenses-Triple Net leases position all expenses on tenant-real estate tax, building insurance and maintenance.
Retail Space Trends 2022
Social commerce- Experiences that connect offline and online shopping