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Retail Development Adapts to Stay Afloat in Choppy Seas
Looking into 2023, uncertainty still exists in the retail development industry, writes Cox Castle & Nicholson partner Daniel J. Villalpando. With the pandemic largely in the rear-view mirror, the uncertainty this year takes the form of supply chain issues, rising inflation, a labor shortage in retail, and general doubts about the economy.
“Despite all of these pressures and uncertainties, many in the industry remain cautiously optimistic about the coming year, while acknowledging that being able to adapt to changing times will remain key to survival,” Los Angeles-based Villalpondo writes in a CCN report, Retail Development – Weathering Choppy Seas While Staying Afloat.
He writes that many retail developers are seeking to strategically take back certain spaces prior to the natural expiration of the applicable leases. The idea is to remerchandise with better tenants and higher rents.
Meanwhile, some “mid-box” or “junior anchor” tenants like PetSmart and Staples, who are looking to downsize their footprints, may be willing to give space back early, allowing landlords to aggregate enough square footage to attract certain “hot” retailers in an effort to revitalize their shopping centers. Click here for the complete report.
- ◦Development
