The Amazon Effect has not shackled the doors of retail units…it has transformed them.
Monday Mar 02nd, 2020
With the up rise of The Amazon effect, retail units are increasingly emptied and commercial real estate leasing and sales in the retail sector may have appeared to take a hit, globally, but does Canada have to worry?
Destination shopping seems to already be a thing of the past in most American markets, but Canada’s large retail malls are still doing well, with their marketing techniques and innovative ways to draw crowds.
According to the Retail Council of Canada (RCC) brick and mortar retail continues to thrive in major shopping malls and The 2019 Canadian Shopping Centre Study analyzes Canada's top shopping centres based on annual sales per square foot productivity and annual visitor counts, including a focus on year-over-year sales growth at Canada's most productive 30 shopping centres.(newswire.ca)
Canada’s retail market is still in good shape, and the retail apocalypse has not yet happened…unlike what media reported 10 years ago. Michael LeBlanc, senior retail advisor for Retail Council of Canada, said the retail industry has been “transformed,” and individual companies will be changing with it.
So, what does that mean to commercial leases and sales for the smaller plazas and outlets?
These transformations have taken shape and units are being leased as flex and warehouse, storage space. Perhaps not the foot traffic dream of the mid century idealists …but a safety net for investors in brick and mortar, commercially zoned buildings.
Retail space turned into sleek offices and outlets (re:mini warehouse and delivery hubs for online shopping) are the best use and most valuable turnover for empty retail space. Do we see a price per square foot increase along with this demand?
We say yes.
Think of it as Retail Redux: The Demand For Ecommerce Fulfillment Centers.
So, tell us...how are you marketing those empty spaces?