It is an understatement to state that the pandemic created a shift in market trends and consumer behavior. The post-covid era created a new awakening amongst consumers and despite forced resistance, in how major shopping centers and retail strips work and engage with their customer base. The onset of the post-pandemic era brought with it, decline in retail sales and saw a shift in investment habits from traditional retail towards other kinds of commercial real estate. This, however, is set to change.
The drop in retail traffic caused by COVID-19 is unlike anything observed in recent times, but there is a silver lining to this gray cloud; It has sparked a renewed interest in change. Real estate experts, investors and market specialists are seeking accurate and reliable information which can assist change. Retail is taking an about-turn and is on track to be a significant driver in the economy's future growth. The question, however, remains - Is physical retail shopping a thing of the past? The short answer to this is No! The Directory of Major Malls (DMM) dataset demonstrates the transformational revival that is reshaping brick-and-mortar development and utilization. The pandemic did shift the retail market to an online platform, but not to the extent of causing a permanent vanishing of physical retail centers, nor did it cause any economic concerns in the long run. Shopping centers and malls are making a comeback, reemerging in a spectacular manner. According to an analysis of recent data managed and sold exclusively by DMM, "More than 20% of larger conventional enclosed malls have plans to convert to hybrid configurations that combine retail, office, residential, and other alternative uses in the next few years."
We’ve curated a list of important questions one must ask when planning on investing in real estate, specifically retail investment:
- What is the current status of the anchor space vacancies linked with major retail complexes and malls?
- What is each center's tenant mix, and the diversity changes over the past years?
- Which owners/developers contribute the most and least to the shopping center or retail strip?
- What is the total leasable area?
- What are the categories other tenants fall under?
- What is the current and past foot-traffic of the shopping strip?
- What demographic components are in a 1,3, and 5 mile radius?
According to the National Retail Federation, retail sales in 2021 are projected to amount somewhere between $4.33 trillion and $4.4 trillion. This is a huge increase that will undoubtedly include sales from both, existing and future shopping centers, retail strips, and malls. The right time to invest in retail centers is now. Take advantage of these changing times and begin your process of wealth creation and accumulation. Real estate investment can be risky and needs the overview of an expert or professional. TC Global Commercial can help you with such real estate needs and more. Begin your investment journey with TC Global Commercial by getting in touch with one of our experts in the industry.
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