The COVID-19 pandemic is generating renewed predictions about the death of commercial retail property. While there has been a staggering number of store closings and many landlords are struggling to fill those vacant spaces, the longer-term outlook may not be so dire.
Truth be told, the retail, restaurant and entertainment landscape has been changing for quite some time as consumers’ buying and dining preferences have shifted to prioritize convenience and the experiential nature of those activities. Those tenants that pivoted and adapted their business strategies and physical locations to meet consumers’ demand are better positioned to ride out the long-term impact of the COVID-19 health crisis. Survival will also depend on the underlying fundamentals of specific properties. For example, location will always play an important role in real estate, and those properties in high traffic locations within stable communities will continue to thrive over the long-term. This has already been evidenced by the increasing number of e-tailers and online businesses that are continuing to open brick-and-mortar locations to connect with customers in person.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email firstname.lastname@example.org.