What is your view on the future of the retail sector?
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[{"id": "gvh5oaf", "text": "I think that small neighborhood retail centers will be fine. Many office and service users will take over this space. \n\nThe big box stores with 20K+ SF are the ones that are being hit the hardest. Macy's, Dillard's, Bed Bath and Beyond are all closing hundreds of stores.", "replies": [{"id": "gvh6ypj", "text": "Yep. Lots of conversion opportunities coming soon.", "replies": [{"id": "gvhbewa", "text": "What types of uses do you foresee that they will convert those big boxes into?", "replies": [{"id": "gvhbz7s", "text": "A few that I know of are call centers, online retail last mile delivery, and even a soundstage for film production.", "replies": [], "depth": 4}, {"id": "gvhd7fn", "text": "Mini storages is another.", "replies": [{"id": "gvhjdot", "text": "I could totally see Walmarts and such being transitioned into storage facilities!!!\n\nThat\u2019s a service that will never die.", "replies": [], "depth": 5}], "depth": 4}, {"id": "gvhjzdc", "text": "Amazon will probably look at some of these since they are opening stores, but mini-storage is a good option.  Gyms is another", "replies": [], "depth": 4}, {"id": "gvhkyfs", "text": "I have seen them transitioning into residential, as a tower attached to the rest of the mall. You bring permanent foot traffic, a new category of tenants, and more walkability. Of course this only works in more urban settings.", "replies": [], "depth": 4}, {"id": "gvhtose", "text": "I have seen some gyms pick it up.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gvh5s12", "text": "Retail will still exist although some types of retail may be challenged. Convenience-based retail will remain, as will the top fashion malls. But B malls and power centres are likely to get repurposed over time.", "replies": [{"id": "gvh675t", "text": "Agreed. I think if someone is getting into retail leasing now they should really start thinking about creative ways to readapt the spaces. Networking with professionals in other market sectors such as industrial will likely be beneficial to future success.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gvhc7uy", "text": "Convert retail &amp; office space to Condos.\n\n&amp;#x200B;\n\nYorktown Mall is already working on this as are several others.  I suppose those down voters will have to down vote the Chicago Tribune as well.\n\n&amp;#x200B;\n\n[https://www.chicagotribune.com/suburbs/oak-brook/ct-ppn-suburban-malls-tl-1128-20191126-pt5ufqnu25gihddrjxwgsk3roi-story.html](https://www.chicagotribune.com/suburbs/oak-brook/ct-ppn-suburban-malls-tl-1128-20191126-pt5ufqnu25gihddrjxwgsk3roi-story.html)", "replies": [{"id": "gvhkwic", "text": "Not sure why this got down voted (twice).  It's happening across the country with highly capable owners / developers.\n\nOne of the best retailers in the entire world owns a place called Bellevue Square and Lincoln Square.  The dude is a genius.  He has residential on the top floors (30 and 40 stories), office in the middle, retail on the bottom...and his properties get ***the*** top dollar in the entire Seattle region.  No one charges more than he does....and he's full..with people begging to take any available space.\n\nPeople live up top, go to work in the middle and when they're done, they go downstairs to shop.\n\nThe concept is about as close to a home run with 3 on base as it can get.", "replies": [{"id": "gvht85x", "text": "What else are these Mall Owners supposed to do?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gvhdf3m", "text": "Unpopular opinion: Florida is a risky market long term due to climate change. Personally I would not put the work into a market that will not have the same alure to investors down the road.\n\nThat being said, I think a retail specialty will be a benefit to you long term. Retail spaces from 1000-3000 SF are what the market wants. There is a ton of transition that will occur in the next 10 years to meet those demands and if you are knowledgeable and have the right network there will be plenty of opportunities to capitalize. \n\nFor some businesses having a retail location will be more for branding purposes and less about actual in store product sales. Also there will always be services best rendered in person that will require a storefront. \n\nRetail has experienced a tough period over the past year, but in my market we are back to pre pandemic rates and vacancy has gone waay down in the past 3 months. Retail ain't dead, it is just changing. That means transactions and lots of broker commission for this product type.", "replies": [], "depth": 1}, {"id": "gvhecc5", "text": "Covid simply sped up the inevitable when it comes to retail (in general). Does anyone truly prefer navigating that big cart through grocery store aisles and then standing in long checkout lines versus pre ordering and having someone load your purchases into the trunk of your vehicle or getting groceries delivered? C\u2019mon, it was only a matter of time. If Grandma Boomer is willing to get on Facebook, she\u2019s definitely willing to change her grocery shopping habits. \n\nShopping malls were barely surviving pre-Covid. It\u2019s an antiquated way to shop that has been on a steep decline for several years. \n\nRetail space geared towards restaurants, services, and niche purveyors could bounce back or crater. It\u2019s TBD. Why pay a premium to enjoy a meal at a restaurant when you can have the same experience at home in your slouchy pants?", "replies": [{"id": "gvhnxy0", "text": "Every time I get groceries delivered or put in the trunk of my car, I get:\n\n* produce that has already gone bad\n* cans that are dented\n* milk that will expire within the next 3 days\n* a poor substitution that I wasn't contacted about, or no substitution at all, and still charged for the original item\n\nThere's a reason cap rates for grocery-anchored centers haven't gone up at all in the past 12 months.", "replies": [{"id": "gvhvbdb", "text": "grocery is going to automated robot pickers and amazon style infrastructure.  Grocery anchored centers aren't having cap increases because there is literally nothing to invest in and caps are crashing everywhere across every industry.  TBH I think the grocery anchored centers are about to have a hard time.  Gimme a smaller footprint prime RE location and I'll fill that with medical, retail facing office, telecom etc all day.  \n\nThis idea of work a deal with an anchor then make cash on inline is changing, it completely brought down the mall industry, and grocery is next IMO", "replies": [], "depth": 3}], "depth": 2}, {"id": "gvhwmmb", "text": "Yeah I like prefer going to the store. Its an excuse to get out the house and take a walk and I am likely to see stuff I would not have thought of browsing online. Plus online groceries look unappealing even amongst the stuff that I know I like. And I am no boomer.", "replies": [], "depth": 2}, {"id": "gwg7u84", "text": "I don't see people moving on from picking food in person; it's a highly visual and engaging experience. Is an Uber delivery driver gonna give a shit which cut of meat has more marbling, which fruit is ripest?\nFarmers markets are still a thing for these same reasons and we're a few industrial revolutions more advanced than that.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gvhk9i8", "text": "It will come back strong, but different.\n\nThe death of retail has been predicted since the 80's.\n\nIt will be fine.", "replies": [], "depth": 1}, {"id": "gvht4gv", "text": "Where I live the home service, building and maintenance services business is booming. My small roofing company has the need for small office, indoor storage/warehouse and outdoor storage for equipment. I could see the demand for space like that being viable in some older mall type spaces. We are building a 5000 sq foot warehouse and office space for this purpose on our commercial property and will be leasing out the other half of our building. Converting an existing space with lots of outdoor parking in place and loading docks would actually be very cost saving as long as the space is properly repurposed\n\nEssentially walmart type stores will become distribution center focused and shipping hubs. After all product still needs to be moved from point a to point b and using these spaces as distribution and fulfillment centers will only get bigger. Same day pick up and delivery are key services and good online marketplaces to shop will drive this.", "replies": [], "depth": 1}, {"id": "gvhu9yw", "text": "understand you can make money, actually a lot of money, in a down market.  People who solve problems get paid a lot.  Being an expert in something that is hard to deal with can be a good thing.  \n\nIs the next 20 years going to be great for retail?  I mean probably not.  I don't see anyone who really thinks that is the case.  Current retail sits on some of the most valuable land out there, something will happen with it.  Figure that something out and be ahead of it and you will do well.  \n\nSometimes you do better going where people don't want to go.\n\nIf your plan is to put a sign up on random strips and get calls and call it a day retail probably isn't going to work like that much longer.  Just like MF was dominated by distressed and people who knew how to redevelop and now its dominated by low caps and everyone and their cousin trying to trade the same properties now.", "replies": [], "depth": 1}, {"id": "gvi4el7", "text": "Retail isn\u2019t going anywhere just yet. It will decline, but it\u2019s not leaving until at least 2035.\n\nIn the meantime, beginning the transition is your best bet. Turn your mall into a storage facility/office building, or maybe a hotel", "replies": [{"id": "gvj56u0", "text": "Could you explain more why we should turn our malls mall into a storage facility/office building, or maybe a hotel?", "replies": [{"id": "gvjived", "text": "I\u2019m not saying you should do it now. I\u2019m just suggesting you to begin the transition as soon as possible to take advantage of the industries which are actually booming, like e-commerce (storage) and tech startups (offices)", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gvi59w2", "text": "Amazon-Proof Retail will be the future, Grocery &amp; Gyms will fill bigger vacancies, Restaurants will stay. Malls will turn into mixed use developments and will create office and retail space. Marijuana legalization will also be interesting for retail leasing in the future.", "replies": [], "depth": 1}, {"id": "gviyfsn", "text": "Retail leasing is hard. There are many variables, not the least of which are demographics and traffic counts. Those are changing. How people shop is changing, and my entire life retail has been a joke. \n\nThe brokers in retail work so hard for so very little money compared to office or industrial. Do literally anything else with your life. Stay away from retail. Unless it is triple net sales. That\u2019s probably going to be ok.", "replies": [], "depth": 1}, {"id": "gw0rx6z", "text": "Definitely true, is going to affect broker in a positive way. Real estate broker have lots of opportunities in this area", "replies": [], "depth": 1}]