In a number of our posts we have highlighted the steady erosion of brick and mortar retailers as some succumb to the growing popularity of online shopping. To some, this may signal the beginning of the end of commercial real estate, but to others, it is simply an evolution of the marketplace.
Basically, some analysts believe that large commercial retail spaces previously occupied by big box stores or department stores are simply being replaced by relevant retailers. In fact, a recent globest.com article highlighted how commercial real estate brokers get calls every day from prospective retailers that are looking to expand their reach.
Because of this attention, brokers are convinced that retail is evolving instead of declining. If a store is no longer relevant, the space can be vacated and renovated to accommodate a new retailer. We have seen a number of examples where lifestyle retailers such as fitness centers, restaurants and family fun venues have replaced failing retailers.
This all points to new objectives in the commercial retail industry; which are to provide a unique shopping experience by incorporating first class entertainment and food choices to keep shoppers returning.
Further, with consumer metrics remaining strong, there will be continuing opportunities for upstart retailers to penetrate what used to be a difficult entry. This means that retailers will continue to rely on experienced commercial real estate attorneys to analyze potential deals and protect their legal rights as they forge new ventures.
The preceding is not legal advice and is provided for informational purposes only.