Every month, we reach out to retail industry leaders in order to gain their perspective on the market. This month, we asked what kind of retail locations are the most popular.
Steve Merkle, Vice Chairman, Retail Property Services, Newmark
The best retail sites should have proximity to their customers, be easily accessible and be a safe environment. Power centers are trending, with the correct tenant mix. Mixed-use centers are also trending, and the successful ones need to provide a “sense of place” beyond just the opportunity to purchase an item. Developers therefore need to get the right environment for their centers and move away from simple functionality. Instead, malls should give customers a reason to go to the center. Regionally speaking, malls in tourism- driven markets are expected to do well, in addition to malls in locations where there is an influx of young people moving — such as Austin, Nashville, Tenn., and Denver — thereby giving those areas a great energy. However large markets, such as Los Angeles and New York, are also expected to recover with some submarkets performing stronger than others.
