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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. 

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Cox Castle's Villalpando

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).