Speaking at a ULI Minnesota event, Kevin Cavenaugh, owner of Portland-based Guerrilla Development, said bigger is not necessarily better, and oftentimes it is worse, in terms of the complexity and risk.
Since 2004, over $1 billion has been invested in redevelopment and new construction in downtown Cincinnati and the adjacent Over-the-Rhine neighborhood. Representatives from Erie, Pennsylvania; St. Louis; and Atlanta have visited the city in the last year to see how a combination of nonprofit redevelopment, historic preservation, land banking, and strategic acquisitions, funded by tax credits and corporate investments, have turned things around.
The highly coveted second corporate headquarters of e-commerce giant Amazon.com would be a welcome addition to Austin, but the $5 billion project undoubtedly would produce more housing and transportation woes in one of the fastest-growing regions of the United States, said panelists at a ULI Austin event.
With e-commerce’s stake in U.S. retail at less than 10 percent, suggestions of a “retail apocalypse” of brick-and-mortar stores is greatly exaggerated, panelists said during a ULI North Texas event on the retail sector. Still, panelists at an event in Dallas said the industry has to find new ways to reinvent itself and connect with customers in order to thrive.
Soaring rents have seen London’s New Bond Street rise to become the world’s third most expensive retail street, according to a report by Cushman & Wakefield. The annual Main Streets Across The World report, now in its 29th edition, tracks 451 of the top retail streets around the globe and ranks the most expensive in 68 countries by prime rental value using proprietary data.
Trading Up: Dining, Leisure, Amenities, and the New Shopping Centre is the second report from the ULI Retail and Entertainment Council to look at the role that food and beverage (F&B) and leisure have in supporting shopping centers as they adapt to retail sales moving online. This year, the research extends that topic to consider how the addition of community amenities is also emerging among shopping center owners.
Retail is the pulse of any vibrant urban environment, including downtown Los Angeles (DTLA). Just ask Avison Young’s Derrick Moore, who has brokered some 400 DTLA retail leasing deals in the last few years.
A new report from CBRE highlights that the two categories occupying the most space in U.S. malls—department stores at 48.7 percent of gross leasable area, and apparel, accessories, and shoes at 29.4 percent—also posted relatively tepid retail-sales growth from 2011 to 2016. In contrast, categories with stronger retail-sales growth, such as health care, still account for relatively little occupancy of U.S. malls
In addition to Amazon’s purchase of Whole Foods, an enormous amount of movement has occurred in the grocery sector in the past year, as regional chains expand into new markets and European brands enter the United States.
Sales per square foot at all but a few public retailers have declined to an average of $325 ($3,498 per sq m), down from nearly $375 ($4,036 per sq m) in the early 2000s, according to research by CoStar. But while e-commerce has been disruptive to traditional retailers, several companies, including Apple, Tiffany, and lululemon, have managed to increase sales.