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The Alan Mayes Company
14560 183rd Ave NE
Woodinville, WA 98072
Phone : 425-
Cell : 206-
Fax : 425-
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The Alan Mayes Company
Real Estate Services
Leasing, Site Selection Construction Management
TM The Alan Mayes Company
www.alanmayes.com
Retail Real Estate – New Normal
The last year has seen a reduction of consumer confidence and sales throughout the retail industry. This reduction in sales has caused many retailers to close stores or at minimum to request and receive lowered rentals so that their units can survive another year to see what the future brings. The reality is that consumers have been forced by economic conditions to spend less. This has forced retailers to adjust their model significantly and at the same time demand lowered rents for all new stores.
We don’t really know when retail sales will return to somewhere close to the sales
received in the last few years so retail chains have had to reduce expense and to
re-
Retailers and Developers have found it necessary to work together to complete deals, finish center merchandising, and to try and keep existing centers vital and viable. And for the foreseeable future, this strategy appears to be the New Normal for Retail Real Estate. Landlords and Retailers finding ways to continue their business models as best they can until the economy changes or each of them have to morph their models to react to emerging sales trends.
New Normal means lower sales, lower profits, lower rents, lower expectations and lower growth. It may well be that we will all look back at this period of New Normal and long for these days again. Certainly the retail scene has changed forever.
Alan Mayes
Senior Vice President, Point Retail.com
