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| Ehimetalor Akhere Unuabona/Unsplash |
Despite a meteoric rise in ecommerce transactions over the last year and half, the experience hungry human is slowly walking back to the retail store, resulting in new store openings and some such.
And before you let brick-and-mortar naysayers fill your cart with one-sided online opinions, please take a look at the current retail leasing trends.
📌 Ecommerce Brands Are Opening Brick-And-Mortar Stores: Brands that started online are jumping aboard the physical store wagon. Many are creating in-house teams and opening stores across the world if they have the money.
For smaller brands with shallower pockets, working with a ghost-retailer to open new locations has become a popular choice.
📌 Smaller High Street Stores Are Hot: Instead of occupying space in large, commercial malls, retail brands are more keen to build smaller footprints in pedestrian-friendly zones.
As the need for large storage spaces for inventory is negated due to e-commerce, last-mile facilities, and delivery services, smaller stores are increasingly making business sense.📌 Class A Retail Assets To Thrive: While contemporary, class A malls are seeing rising rents, rents fell quarter-over-quarter for Class B and C assets, signalling the need for malls to step-up and adapt to changes in retail demand if they want to survive.
📌 ESG Scores Are Gaining Importance: As the climate crisis has come sharply in focus, retail brands have developed sustainable goals.
This new green focus means brands will be seeking environmentally conscious real estate, including refurbished old buildings in high-demand locations.