How Landlords Are Capitalizing on the Growth of Experiential Retail

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How Landlords Are Capitalizing on the Growth of Experiential Retail

In an unexpected twist, retail is making a triumphant comeback, emerging as one of the hottest asset classes in real estate. Over the past year, demand for retail space has surged by nearly 42 million square feet, with record low availability at just 4.8 percent as of April 2024. This dramatic turnaround comes on the heels of years marked by store closures and bankruptcies, signaling a new era where certain sectors—like food and beverage and bargain retail—are not just surviving but thriving. Dive into this article to explore how these shifts are reshaping the retail landscape and attracting investors eager to capitalize on the resurgence.

At the heart of this retail renaissance is the rise of experiential shopping, where the focus shifts from mere transactions to creating memorable experiences. Younger consumers, particularly Gen Z, are seeking out stores that offer immersive, Instagram-worthy moments rather than just products. Retail giants like Ace Hardware and Dick’s Sporting Goods are leading the charge with innovative concepts designed to draw in foot traffic and enhance customer engagement. Discover how these experiential spaces are transforming shopping from a chore into an adventure, and why they represent a critical investment opportunity for landlords.

As the line between shopping, entertainment, and community continues to blur, the implications for retail landlords are significant. The growing demand for experiential retail necessitates long-term leases and prime locations, prompting landlords to rethink their strategies and partnerships.

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Presented by NYSERDA

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