Every month, we reach out to retail industry leaders in order to gain their perspective on the market. This month, we asked: Which retailers/restaurant brands do you predict will be “hot” as we head toward 2024, and why?
Josh Poag, President/CEO, Poag Development Group
Since pre-COVID, we’ve been focused on entertainment, fitness, health, beauty and restaurants. But it seems fashion tenants are coming back. Traditional women’s fashion was killed during COVID because women weren’t dressing up and were instead buying athleisure from places like Lululemon. It began reversing in late 2021 when people started getting out of the house again and going to Christmas parties, for example. Now, in 2023, tenants that we wrote off as dead, such as Chico’s, Ann Taylor, Talbots, J. Jill and White House Black Market, are now coming back strong. Same with men’s fashion brands, like Jos. A. Bank. So, I told my leasing team I’m now open to more fashion tenants.
Steven Levin, Founder/CEO, Centennial
What I find exciting is that the growth in retail today is back to being merchant led, both in terms of food and beverage and in fashion. For a while we’ve seen this chef-driven growth trend in restaurants, which is where customers are really finding the experience they want. Every city has its own grouping of these, in which there are maybe three to five great restaurateur chefs who are very concept-driven, whether it’s for an Italian or a Mediterranean restaurant, for example.
As for fashion, people are now getting back to work and going out to dinner, so consumers are interested in casual wear that’s not athleisure. What will continue to be popular is what we call the contemporary brands, such as Reformation, FRAME, Veronica Beard and Brunello Cucinelli. These brands are hitting it spot-on with a timeless personality of style, providing fashion in a more minimalistic design that resonates with consumers today. Just walk along the SoHo neighborhood of New York City, and you’ll see a lot of what I’m talking about.
Dan Spiegel, SVP, Managing Director, Coldwell Banker Commercial
The carwash tenant is hot because it doesn’t need heavy staffing and doesn’t necessarily require a lot of land. In fact, I know of two separate cases where former Applebee’s restaurant spaces on corner lots have successfully turned into carwashes. Grocers continue to trend, which started during the pandemic. Medtail, whether it’s physical therapy, chiropractic services or dialysis clinics, is becoming more popular not only because the population is getting older, but also because hospitals want to get closer to their clients by situating themselves in grocery-anchored spaces. Cannabis and CBD stores are also a niche growth industry, depending on what state you’re in and what the regulations are. Fast- casual restaurants also continue to do well, perhaps because we’re all so busy in our lives and want to take-out our meals. Gaming type tenants are also popular.
