Retail Sector Makes Headway in Experiential Drive
“Location, location, location” still holds, of course, but for the retail side, the main considerations these days might be stated as “food, fun and fitness,” as retailers strive ever harder to create experiences that will bring shoppers into retail centers, according to a midyear 2019 retail outlook from Marcus & Millichap.
An experiential approach to finding the best mix of retailers appears to be winning the approval of investors, many of whom are looking to sign a variety of non- or less-traditional tenants. To fill vacant big-box spaces, gyms and other fitness tenants are much-desired, as are entertainment retailers, such as e-sports venues and dine-in movie theaters. The report notes that fitness tenant space in shopping centers has almost tripled in the past 10 years. Other experience-oriented retail categories have a positive outlook as the economic cycle progresses. Bars and restaurants, for example, are likely to remain sought-after tenants.