• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Market
  • Leasing
  • Education
  • Video
  • Tenants
  • Retail
  • Trends
  • Investment

CommercialWebPage

Commercial Real Estate Prescott Arizona

  • About
  • Featured
  • Management
  • Tenants
  • Documents
  • Videos
  • Contact

Retail Trend Lines and Insights

August 11, 2016 By Donald Teel Leave a Comment

dstMacy’s stock is up this morning. Their physical market presence is predictably down.

Do not buy their stock just yet. Wait until Macy’s closes nearly 100 stores in what is now regarded as the biggest red flag in retail merchandising since the market crash of 2008.

The retail segment of the CRE market has been flipped over and is shaking out. There’s more change coming as digital consumers and their shopping habits continue to shape the retail industry’s commitment to bricks-and-mortar operations.

Our behaviors are transforming some of the most renown retail establishments in the nation. In the end, the change will make them better because it is customer-driven.

Small is the New Big

We are going to see retailers continue to shrink their physical presence within all trade areas as small becomes the new big, where bits and bytes become modern transaction currency.

For me, the tightening of operating costs and the reduction in square footage is making a lot of sense in a world driven by Facebook, Twitter, YouTube, Google+ and the entire spectrum of millisecond communications. And, I have not even mentioned Amazon’s 30% per year growth rate each year for more than a decade straight.

Let’s remind ourselves that Apple sold a lot of iPods, iPhones and computers without a lot of retail operations.

These facts beg the question what happens to retail malls and shopping centers that have been historically dependent on a top-down marketing model that had the biggest brands drawing the traffic to the lesser known tenant mix? Hmmm?

Finally, the Customer is Right

The change we see is the result of a behavioral mandate and operating reality similar to our move from gas guzzling cars to fuel efficiency. We got rid of our eight mpg cars and trucks and replaced them with new 14, 20 and even 40 mpg automobiles. The industry retooled, we adjusted, and life went on and the industry survived.

Market realities and consumer habits are creating a fuel efficient retail industry. Market presence, innovation, and the digital economy are connecting consumers with retailers in more cost-effective and time-saving ways.

Going shopping is not what it used to be. People now live their frenzied lives on the run. We are starved for time and the efficiencies we experience by having an Amazon account are a dream come true and if you are Amazon Prime the shipping is free. Driving, walking, biking and hiking are on the increase. But our eagerness to walk the floor of 100,000 SF retail store is, well…borrrrring.

Filed Under: Retail, Technology Tagged With: amazon, consumers, macy's, Retail, Technology

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Search the Blog

Subscribe to CommercialWebPage

Receive CRE News to Your Inbox

The Premiere AZ CRE Blog


Welcome to CommercialWebPage.com, Arizona's premiere commercial real estate investment and property management blog. We are now in our second generation with more commentary, tips, tools and other features designed for investors, CRE brokers and property managers.
wni-skyscrapper

commercial properties northern arizona

Willow Creek Village Prescott AZ
Prescott Retail Website Prescott AZ

Featured Posts

  • Leasing
  • Investment
  • Taxes

Lease Opportunity – Historic Prescott

Drive through restaurants are in demand. Downtown drive through restaurants are in greater demand. Now, add to this fact that we have a former Jack in the Box drive through restaurant now available for lease and it’s located just three blocks from Prescott, Arizona’s historic downtown square and Whiskey Row. Everyone in Prescott, and most […]

Leupp: REITs Signal Beginning of 3-5 Year Recovery in Commercial Property

Jay Paul Leupp, founder of Grubb & Ellis, talks with Bloomberg’s Julie Hyman and Mark Crumpton about the outlook for the U.S. commercial real estate market. Leupp also discusses his investment strategy and prospects for Associated Estates Realty Corp. and Sun Communities Inc. (Source: Bloomberg) Donald Teel is a Senior Associate and Principal with Arizona […]

Cost Segregation Studies

Syndicated from John Deirmenjian, CPA. Cost Segregation Studies can provide a range of significant benefits to businesses. These studies can be applied to buildings that have been purchased, constructed, expanded or remodeled since 1987. In order to realize the maximum available benefits under current tax law, the IRS requires Engineers, CPAs, and possibly other professionals, […]

CRE Topic Cloud

arizona arizona commercial bank owned barack obama buyer's market cap rate cnbc commercial commercial property commercial real estate document donald teel economy flagstaff foreclosure Grubb & Ellis Industrial investing Investment investor investors lease leases Leasing market Medical mortgage northern arizona Office owners ppa prescott prescott arizona prescott commercial property prescott commercial real estate prescott valley Prop. Mgmt. real estate recovery reo Retail sedona Tenant Tenants Video

Website by e-PartnerĀ® Development · Copyright © 2021 · Donald Teel - Commercial Real Estate Brokerage & Property Management Services· Email· Terms · Login