We asked: What do you foresee happening with retail tenancy trends and consumer shopping habits in the second half of this year, and why?
Jim Farrell — SVP/Market Leader, Charleston, SRS Real Estate Partners
“Revenge spending” is real. After such a lengthy time where we couldn’t get out to shop or eat — except for essentials — people are now spending and eating in a big way in physical stores and restaurants. Total retail sales increased close to 17% in the first quarter of 2021, and e-commerce still only accounts for 13.6% of the total, according to the U.S. Census Bureau. Huge percentage sales increases aren’t uncommon; after all, many retailers were closed in the 1st Quarter of 2020. However, many of the retailers and restaurateurs I’ve talked to recently are experiencing sales gains in excess of their 2019 numbers. This pent-up demand will continue through the rest of the year.
Joseph A. Aquino — President, JAACRES
While Manhattan slowly recovers from COVID-19, we notice the virtual absence of tourists, both from overseas and the rest of the U.S., and the dramatically reduced number of office workers coming to their usual workplaces. Nevertheless, we see national retailers taking advantage of the low rent opportunities currently available here. Most people are still working from home, so retailers have recognized the trend and are opening locations where these residents live. For example, Columbus Avenue, between 70th and 72nd Street, is a purely residential neighborhood and one of the most vibrant in Manhattan. Many of its residents continue to work from their apartments. Two national apparel brands just signed leases in this area that is filled with residential side streets: Faherty signed a lease for 243 Columbus Avenue, between 71st and 72nd Streets; and Allbirds secured a location one block away from Faherty, at 205 Columbus Avenue between 70th and 71st Streets.
