The international coronavirus pandemic continues to substantially effect the state of the retail real estate sector. Even in places where retailers are fully open again, customers are showing how they have altered their shopping behaviors – partially because of health concerns, but also due to newly formed habits of online shopping. Although research suggests customers will continue or even increase their online shopping habits, the brick-and-mortar locations are predicted to successfully adapt to meet different consumer needs.
According to Mike Margiotta, Principal with Emersons, “We continue to see a bright future for the retail experience as retailers and landlords partner to create exciting experiences and opportunities for their customers. We are seeing greater focus on innovation, technology, and meeting customer needs across channels, as well as the introduction of more finely targeted offerings.”
“We are seeing a gradual recover, albeit uneven and unpredictable. Regardless of online shopping, there is still sizeable capital waiting to be invested and retail portfolios continue to be a strong, defensive and long-term move,” says Mike.
While some large investors are trying to get out of the retail market, many private investment funds and personal investors see this as an opportunity to enter at lower initial output. But not all owners are ready to jump ship and dispose of their retail portfolio. Many are exploring other options to shore up their portfolios for the future, such as lease restructuring and capital markets.