Every month, we reach out to retail industry leaders in order to gain their perspective on the market. This month, we asked: Are there any new retail tenancy trends that you are particularly excited about as we enter into 2024, and why?
Corey Bialow, CEO, Bialow Real Estate
The one consistent theme I’m seeing within the retail industry is the continuing trend towards concepts that offer an experience or service that I refer to as “Amazon-proof” retail. Traditional brick-and-mortar retailers are being forced to downsize their prototypical footprints as online shopping continues to take away market share. The result has been the emergence of new, exciting “Eatertainment” concepts that combine food and beverage, an experience and branded merchandise all under one roof.
We’re also seeing a strong uptick in new types of service businesses that have evolved into retail-centric concepts. Landlords and developers are seeking out these types of uses, as they also fall into the category of something that can’t be done online. Some of these unique uses we’re seeing on leasing plans throughout the country are swim schools, med-spas, vets, boutique fitness, urgent cares and childcare centers, etc.
Anjee Solanki, National Director, Retail Services & Practice Groups, Colliers U.S.
With the lack of new construction and quality real estate, retailers are becoming even more creative. We are seeing a trend in the QSR space with the likes of Chick-fil-A and Taco Bell going vertical in their latest new store formats, which does not include dine-in service but rather a kitchen on the second level with multiple drive-thru options for customers who are picking up or ordering on site. This format provides customers a seamless experience across any shopping method they prefer.
It is estimated that 39% of all retailers are planning to test new retail formats over the next few years. The most common type of new format retailers want to test in-market is an omnichannel store that enables them to introduce new features and facilities, such as collection points for online orders, ordering kiosks and drive-up/curbside facilities.
