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Urban Retail Trends Predict the Bigger Picture
The U.S. shopping corridor where people spend the most time—is it Fifth Avenue in New York or Rodeo Drive in Beverly Hills? Actually, it’s neither. That distinction is held by the Metro Center corridor in Washington, D.C., where the average visit is just over three hours.
The nation’s most popular retail corridor for Millennials? Has to be Manhattan’s Meatpacking District, right? No, it’s M Street, again in D.C.
Well, then Meatpacking at least ranks as the most popular district in New York for this demographic, doesn’t it? No again, although it is the busiest corridor in town after 11 p.m. In fact, Union Square is the top retail corridor for Millennials in New York.
These are a few of the shopping metrics that JLL has zeroed in using geofence technology, in partnership with location-based analytics firm Alexander Babbage. More broadly, JLL’s latest City Retail research report identifies six themes that characterize urban retail today. These include:
• Office and retail space are becoming intertwined.
• The center of gravity of urban corridors is shifting, particularly within the luxury sector.
• Vacancy is rising in corridors where there are large floorplates, as smaller format stores are on the rise.
• Despite rises in vacancy, prime urban corridors remain the top destination for retail innovation.
• Food and beverage operators are seeing luck in some markets, but are struggling in others due to prohibitive pricing.
• Demand exists for prime urban retail assets, but investors are unable to find the supply.
“The continued merging of office and retail space, the large floorplates left behind by big box retailers, and the lack of supply for prime urban retail assets all demonstrate the impact the changing retail landscape has on these urban corridors,” said James Cook, head of retail research at JLL. “The trends that are occurring in these prime urban corridors today are just a preview of the trends that will be impacting retail locations in other markets in the future.”
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
- ◦Lease
