I catch up with Anthony Buono, Executive Managing Director, Retail Services, the Americas, CBRE, at RECON at which time he describes to me the dynamic changes that retail real estate is going through.
With the addition of multi-channel distribution models through the internet, brick & mortar as well as outlet centers, retail is revolutionizing they way that we have been doing business.
Anthony describes a number of themes behind the changes that he is seeing including the following themes and sectors:
1. High street retail, urban, fashion, luxury, downtown format are doing extremely well;
2. Restaurants and food & beverage is doing;
3. Bigger boxes that have an internet component to them are shrinking and retailers are using less space.
Anthony uses a great term, “adaptive reuse” of the big boxes. We discuss how some larger big box retailers are shrinking the retail portion of the boxes and expanding backend of the boxes for logistics and/or same day delivery.
Finally, we discuss the trend towards medial as a predominant use in shopping centers.