We asked: What do you foresee happening with retail tenancy trends and consumer shopping habits in the second half of this year, and why?
Michael Hirschfeld – Vice Chairman, National Retail Tenant Services, JLL
There is clearly pent-up demand for being out and about, socializing, traveling and seeing friends, and this will positively impact shopping. I think for the next few months, until we have greater clarity and a simplified set of guidelines in place, international travel, inbound or outbound, will recover more slowly than domestic travel. Thus, the destinations that are the traditional domestic destinations will continue to see an immediate spike in activity. Las Vegas is an excellent example. Based upon traffic counters we have installed for one of the projects we are agents for, we saw traffic of just under 700,000 people for the week that ended May 30. This is only slightly less than pre-pandemic levels! Las Vegas is a good example, as it is so readily accessible from many large population centers by car. Anyone who may still be reluctant about air travel can easily drive to the city. This also can be seen in domestic tourist destinations such as Boston, Washington, D.C., South Florida, as well as smaller markets like Charleston, S.C., or Nashville, Tenn. The favored tenants for these locations are restaurant and music venues, and other socializing destinations.
Other retailers, especially in the fashion sectors, are seeing increases in sales but at slower rates of growth. As we get through the summer and the initial “socializing” push, fashion and goods will start to show greater growth. “Back to School,” which this year maybe should be called “Back to School and the Office,” will be the impetus for this. We anticipate significantly higher footfall for streets, malls, and shopping centers as we head into the fall. Assuming no setbacks from a health and safety perspective, I think the fourth quarter and the holiday season are set-up to do well.
James Famularo – President, Meridian Retail Leasing
We are 100% bullish on New York retail. We’re seeing a surge in the market already, as people will always need restaurants, bars, cafes and service-oriented businesses like salons, dry cleaners, day care centers, urgent care facilities and schools, et cetera. Absorbing vacancy will take some time, but demand is strong and increasing every day.
