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The National Forums program brings together industry professionals in select groups to share industry knowledge, develop successful business strategies and build strong relationships in a confidential and non-competitive setting. Learn more about this unique opportunity and apply for appointment today. 

The Forums provide a unique opportunity for members to openly discuss project challenges, business opportunities and lessons-learned in a confidential and non-competitive setting. Over time, fellow members become a trusted circle of advisors.

The National Forums are an excellent way to become involved, stay in touch and develop new connections with key industry leaders.

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Preparing for a New Normal in Commercial Real Estate

Originally published on June 5, 2020 by Shawn Moura, Ph.D. 

The coronavirus pandemic has accelerated social and economic changes that were underway before the outbreak, while also leading consumers, workers and employers to adopt new preferences and behaviors. Collectively, these changes will require that commercial real estate firms adopt new approaches to design, customer relations and business operations to be successful in the future. Christopher Lee, founder and CEO of CEL & Associates, offered his predictions for how the outbreak will reshape demand for commercial real estate in the U.S. and outlined steps that firms can take to remain competitive during a recent NAIOP webinar.

Lee observed that the commercial real estate market is currently about halfway through a downturn. Although the Federal Reserve’s intervention in credit markets and fiscal stimulus measures have mitigated some of the outbreak’s effects on the economy, “all of that is going to burn off fairly soon unless another economic stimulus comes forward.” Substantial economic uncertainty and fears about the coronavirus have paralyzed decision-making in most markets. Buyers are concerned about the pandemic’s effects on building revenues and expenses as well as potential liabilities from infections, and some may no longer be able to secure favorable financing for an acquisition. Sellers are uncertain whether they should sell now or wait out the pandemic, and are unsure whether they will have good options for investing the proceeds of a sale.

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10 Renovations to Consider Before Reopening the Office

Originally published on June 3, 2020 by Clay Edwards

As offices are set to reopen across the country over the next few months, many companies are considering all their options to make the workplace as safe and healthy as possible for returning employees. Companies will need to do more than put hand sanitizer dispensers everywhere and rearrange desks to put employees’ minds at ease.

Regardless of whether your company is heading back into the office ASAP or still managing a remote workforce, there’s still time to make updates with no or little disruption. At Skender, we’re actively collaborating with our clients to modify density and employee circulation to meet social distancing guidelines, and we’re seeing installations and renovations of all sizes. Here are 10 office updates that we’re recommending to support a healthy return to work...

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Some Guidelines on Rent Relief and Lease Obligations

Originally published on May 13, 2020 by Stephanie Friese, Christine Norstadt and Jennifer Garner for the National Real Estate Investor

The jury is still out for May income as landlords and property managers are still assessing the impact from their tenants’ payments. Office, industrial, and multifamily landlords will likely receive most, albeit with some shortfall, of rents because tenants in these sectors have not been affected as much as in the retail sector, where we are hearing reports that as many as 40-50 percent of retail tenants will not re-open.

Strategies to provide tenants with relief

Landlords must time the relief right. On the one hand, don’t rush. Investors need to make sure any relief is not in conflict with loan documents or is pre-approved by their lender(s). Many also believe we don’t yet know how long or short the recovery process will be and want to avoid the costs of multiple amendments. On the other hand, if recovery is going to be long, engaging with tenants early gives the landlord an opportunity to structure a relatively good deal with tenants, builds goodwill, and creates a basis to deny additional requests for relief from that same tenant if circumstances continue to worsen in the coming months.

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Solving the Pop-Up Puzzle: Tips for Owners and Short-Term Tenants

Originally published in the Winter 2019/2020 Issue by David Schneider, Herman Lipkis

There are a lot of reasons for developers to embrace these temporary spaces, but due diligence is required.

 

Pop-ups and short-term uses for commercial property have grown from a trendy concept into a means of monetizing vacant or underused spaces. Moreover, as improved and varied amenities have become a priority for commercial and residential tenants, real estate developers are starting to reframe how they think about existing and future development.

 

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COVID-19’s Impact on CRE: What We Know Today (and Don't)

Join NAIOP Charlotte on Tuesday, March 24th at 2-2:30 p.m. ET for The Advantage Series is an exclusive member benefit, delivering expert insights into the latest research to help you make informed business decisions.

Repercussions from the ongoing COVID-19 pandemic are far-reaching and still quite unknown, but one thing is for certain: the impact on commercial real estate will be substantial. A week ago, CRE fundamentals were solid; will that improve our recovery timeline? What do experts see for the potential future of the industry? How do you recognize a deal today, and know whether it’s better to act quickly or hold? The questions are numerous, and NAIOP is here with guidance to support you today and get you thinking ahead for tomorrow. Have a question for our speakers? Submit it now.

Speakers:
Larry Lance, Executive Vice President-Asset Services, EverWest Real Estate Investors, and 2020 NAIOP Chairman
Al Pontius, National Director of Office & Industrial, Marcus & Millichap
John Chang, National Director of Research Services, Marcus & Millichap

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Retail is Alive and Well. It Just Looks Different.

Posted on November 14, 2019

By Trey Barrineau

Retail apocalypse? What retail apocalypse?

Yes, there have been significant changes in the retail space in recent years, said Amy Sands, managing director with JLL during “The Latest Trends in Retail,” a panel discussion at CRE.Converge 2019 in Los Angeles. However, she said “apocalypse” is an overblown term for what might properly be called “an experiential revolution.”

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Retailer Strategies for Meeting Omnichannel Demand

Posted July 12, 2019

By Kathryn Hamilton

Studies have shown that shoppers of all ages are buying more online than in stores than ever before. So how are retailers addressing these shopping and buying habits? David Hudson and Chris Sultemeier, two leaders from Duke Realty, tackled this topic at I.CON West 2019, NAIOP’s industrial conference held this week in Southern California.

Consumers today fully expect to have the ability to shop and engage with a retailer across multiple channels. Three experiences build the multichannel experience for the retailer: 1) giving consumers the ability to buy in a physical store; 2) enabling orders to be placed online; and 3) following and engaging on social media. Studies show that if a retailer can connect with a consumer through all three channels, the value of that consumer (who is typically younger and wealthier) is much greater for the retailer; in fact, the average value of a consumer who engages with a retailer across all three channels is four times the value of one who engages through just one channel. This loyalty – and repeat customer – is key to a retailer’s success.

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NAIOP Insights: Blurring the Retail Line

Posted on March 28, 2019

 

Redevelopment is almost 100% of what's going on in retail real estate.

Today developers are selecting premier spots where they have access to customers, and that often means reusing existing retail locations.

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Experiential Trends Spark New Retail Success

Posted on December 10, 2018

By Richard Sarkis

Demand for retail properties has taken quite the hit in the wake of rapid e-commerce growth. Companies like Amazon continue to eat up industrial spaces, while brick-and-mortar retailers seem to lose foot traffic by the day.

As that demand has washed away, however, a sturdy foundation has emerged for real estate developers to rebuild and reinvigorate the retail industry as a whole. It has become clear that value remains in the development and reuse of retail spaces across the country.

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Food Halls are Reviving Retail

Posted on July 5, 2018

An infographic by Faith Hope Consolo, chair of the retail sales and leasing division at Prudential Douglas Elliman, finds that “food is the new fashion.” Younger shoppers are more interested in “eating while shopping than their parents and grandparents,” and this behavior is leading to a trend in “eatertainment”-style properties. The report predicts by 2020, the number of food halls of 10,000 to 50,000 square feet in North America could reach 300 (up from 100 in 2017). Additionally, the report recommends a new rule of thumb for malls: 70 percent of their space toward food, entertainment and lifestyle experiences, while the remaining 30 percent should be dedicated to retail.

Supreme Court: States May Collect Internet Sales Tax

Posted on July 2, 2018

The U.S. Supreme Court ruled in South Dakota v. Wayfair, Inc. that states may collect sales taxes from online retailers, even if those sellers do not have a physical location in the state. That reverses a decision the Court had made in 1992 in Quill Corp. v. North Dakota.

NAIOP supports the collection of existing sales and use taxes from online retailers when these taxes are already owed to state and local governments, including backing legislative efforts in Congress that would specifically empower states to do so. Not collecting these taxes puts brick-and-mortar retailers at a disadvantage to out-of-state vendors whose purchasers can avoid taxes, as the Court pointed out in its decision.

“Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the States,” Justice Anthony Kennedy wrote in the decision. “These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause.”

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Retail Outlook for 2018: Changes and Opportunities

Posted on May 24, 2018

According to Cushman and Wakefield’s first quarter report on shopping centers, the retail sector will continue to struggle despite a strong economy. However, it’s not all bad news – while stores found in malls and power centers (e.g., electronics, department, sporting goods) will continue to decline, other sectors will expand, such as dollar stores, discount grocery, off-price apparel, beauty/cosmetics, fitness/health clubs, fast food, coffee and fast fashion, most of which operate in neighborhood and community centers. According to the report, these trends could benefit the owners of Class A malls. "Anchor closures at trophy or Class A malls present opportunities for landlords to attract new, more relevant tenants such as food halls, experiential concepts or other trendy new retailers at current rents," the report states. "Landlords will also see non-traditional mall tenants such as discounters, off-price or grocery chains move into some of these vacancies."

Supreme Court Considers Changing Internet Sales Tax Policy

Posted on May 4, 2018

The Supreme Court is expected to issue a decision by the end of June in South Dakota v. Wayfair, Inc., et al, a case that could change how sales taxes are collected on Internet purchases.

Two years ago, South Dakota passed a law that would require out-of-state companies to pay sales taxes if they sold more than $100,000 worth of goods or made 200 separate sales transactions in the state. The law was designed as a direct challenge to the Supreme Court’s 1992 ruling in Quill Corp. v. North Dakota, which blocked states from collecting sales taxes from Internet retailers if those retailers don’t have a store, warehouse or sales staff physically present in the state.

NAIOP supports the collection of existing sales and use taxes from online retailers that are already owed to state and local governments. Not doing so puts brick-and-mortar retailers at a disadvantage to out-of-state vendors whose purchasers can avoid taxes.

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Does Your Modern Build-out Have a Hearing Problem?

Posted on April 13, 2018

By: Clay Edwards

Open ceilings, exposed concrete floors and glass-walled spaces are the hallmarks of contemporary interiors. These design choices convey a hip and modern mindset for the companies and retailers that inhabit them, but they can come with a drawback that impacts business: noise.

Without the sound-dampening effects of the acoustical tiles used in drop ceilings and wall-to-wall carpeting and other soft surfaces, ambient noises such as conversations, whirring heating and cooling systems, and shifting furniture are amplified. And plans to mitigate this heightened noise can add extra materials, labor costs and time to your build-out.

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Disruptive Forces in the Retail Last Mile

Posted on April 6, 2018

By: Marie Ruff

In 1936, The New York Times claimed, “A rocket will never be able to leave the Earth’s atmosphere.” In 1943, the chairman of IBM said, “I think there is a world market for maybe five computers.” Advances and tools that once seemed impossible are now commonplace – from flying in a commercial airplane to holding a device as powerful as a computer in the palm of your hand.

At CRE.Insights: The Last Mile, speaker David Schwebel, senior director of business development with Swisslog Technology, began his session on the automated age of industrial with these premises:

  1. Change is constant.
  2. Things don’t always go as you expect them.
  3. You will be wrong more than you are right.
  4. When you become right, it changes the world.
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CRE's Critical Contributions to US and State Economies in 2017

Posted on March 14, 2018

By: Dr. Stephen S. Fuller

Development and construction of new commercial real estate in the United States – office, industrial, warehouse and retail – generates significant economic growth at the state and national levels. This annual study, “The Economic Impacts of Commercial Real Estate,” published by the NAIOP Research Foundation, measures the contribution to GDP, salaries and wages generated and jobs supported from the development and operations of commercial real estate.

Commercial real estate development and operation of existing buildings generated the following economic benefits:

  • Supported 7.6 million American jobs in 2017 (a measure of both new and existing jobs).
  • Contributed $935.1 billion to U.S. GDP.
  • Generated $286.4 billion in salaries and wages.
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The Hidden Costs of Open Ceilings

Posted on February 22, 2018

By: Clay Edwards

Open ceilings, with their exposed ductwork and industrial vibe have become popular – but trendy rarely equals inexpensive. For many years, omitting the traditional drop ceiling was assumed to be not just cooler but also to cost less. Common sense seemed to be that by choosing open ceilings, the cost of the drop ceiling was simply avoided, saving on labor, materials and time.

2008 study of retail and office interior construction in five cities seemed to back up that assumption. Sponsored by the Ceilings & Interior Systems Construction Association (CISCA), the study found that initial construction costs for suspended ceilings were 15-22 percent higher than for open plenums in offices, and 4-11 percent higher in retail spaces.

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Malls Invest More Than $8 Billion to Attract Shoppers

Posted on November 16, 2017

To create destinations that captivate shoppers beyond mere retail purchases, owners have dramatically transformed malls by investing more than $8 billion in renovations over the last three years. JLL’s new report, A New Mall Rises, explores 90 super regional and regional malls that are currently undergoing or have gone through a significant renovation during that time period.

“Malls must respond to changing shopper preferences with laser focus and evolve their purpose through redevelopments to be relevant,” said John Lambert, director of retail development for JLL. “Many of the 90 properties we looked at are elevating their role beyond purely shopping and becoming destinations for dining out and entertainment, community activities and even lodging and residential.”

 The capital improvement upgrades fell into five main categories:

  • Forty-one percent of malls added food and beverage options, and of those, 55 percent also added entertainment offerings.
  • Forty-three percent of malls are adding non-retail uses including multifamily, office, hotels, call centers, schools, distribution centers and/or medical facilities.
  • Twenty percent of malls are dedicating space to the community including open green spaces and kid-friendly play areas.
  • Ninety-four percent of malls are getting a makeover through common area improvements, rebranding and/or making tenant upgrades.
  • Twenty-two percent of malls are de-malling the space or demolishing it for the highest and best use in the community.

To Survive, Malls Must Reposition

Posted on October 5, 2017

A report by CBRE, “What’s Wrong with American Shopping Malls?” finds retailers with low-growth rates, such as department stores, occupy a majority of U.S. shopping malls’ gross leasable area compared to retailers with higher-growth categories such as restaurants and home furnishings. This disparity, according to CBRE, indicates malls should lease to different retailers to stay competitive.

However, shifting the merchandise mix will take time. The report states retail leasing structures, such as reciprocal easement agreements that require a retailer’s permission before modifications are made to the shopping center, and the overall reluctance to change among department stores will delay the process. Those who “shift the tenant mix toward higher-growth, lower e-commerce penetration spending categories can create room for revenue growth.” CBRE also notes super-regional malls, characterized by larger sizes and diverse combinations of tenants, have demonstrated a sharp increase in net operating income over regional malls during the past four years.