Consumers want a better shopping experience, but that doesn’t mean they expect a ground-breaking demonstration or innovation every time they step foot in your store. As the industry shifts, mixed-use projects are significantly benefiting retail real estate. Rather than a retail-only development, large properties are being used for different purposes that reach consumers across the spectrum. Rather than a typical mall, usage is shifting to “live-work-play” design.
Mixed-use projects broaden the shopping experience.
Retail real estate no longer revolves around discrete destinations, such as a supermarket or large gym that typically stands alone. Malls that are losing their anchor stores are focusing less on a replacement and more on incorporating movie theatres, gyms, and grocery stores that were never the traditional choice. By involving different kinds of retailers, the shopping experience is broadening considerably. Mixed-use projects offer a one-stop destination where consumers stay longer, spend more, and have a better experience in the process.
Retail lease terms and regulations are being reconsidered.
Retail lease terms are shifting as physical stores evolve, and these changes are often in favor of the retailer. And as laws change, regulations are being updated as well. Microbreweries are of considerable interest to consumers, and the legalization of marijuana offers a new frontier for retailers that have been prohibited from doing business in certain retail spaces. Mixed-use projects that house different types of retail may see common features of the standard retail lease no longer be relevant. Pop-up stores are becoming more prominent, eliminating percentage rate, for example.
The retail industry is undergoing multiple changes, but the opportunities for success are increasing every day. There are several ways to do business, but traditional methods of retail are not a part of the new puzzle.