Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell Banker Commercial brand.
A majority of adults in the United States currently have access to cannabis, whether medically or recreationally. As of this year, 19 states have legalized recreational cannabis use, while 39 states have legalized medical marijuana use. Over the years, the general perception of cannabis has evolved. Once seen as a danger to communities and to younger children, cannabis is now more readily available and marijuana sales produce taxable income for local economies.
The healthcare industry quickly adapted to virtual care delivery during the pandemic. For both caregivers and patients, the rapid transition from in-office to on-screen visits left much to be desired.
Throughout the pandemic, retailers have had to overcome continuous hurdles: expanding digital capabilities, maintaining a workforce, battling inflation’s rising prices, keeping products stocked during supply chain disruptions and more.
In part 1 of CBC’s Consumer Behavior Shifts & How it Impacts Real Estate blog series, we discussed the ways in which consumer behavior has changed over the past two years and how those changes impact every facet of retail strategy. In part two, we will dive into the long-term impact of COVID on consumer behaviors and patterns, how these patterns are impacting both the restaurant and retail industry, and the effects of online shopping.
It comes as no surprise that consumer behavior changed substantially over the past two years. For example, the rise of omnichannel, shifts towards hybrid work, the growth of leisure activities, and increased economic uncertainty all contributed to rapid and unpredictable changes in when, how, and where consumers shop. These changes impact every facet of retail strategy, from chain-level considerations like when to open stores, shelf-level arrangements on where to place products, to product-specific decisions for pricing, packaging, and marketing goods.
On June 2, 2022, Coldwell Banker Commercial’s Senior Vice President and Managing Director, Dan Spiegel, hosted Lawrence Yun, chief economist for the National Association of REALTORS® (NAR) for an insightful and fascinating discussion where viewers learned how the American economy is performing at the midyear mark, important factors to consider and how it is affecting commercial real estate across all asset classes.
Malls were amongst the hardest hit retail sectors during the peak of the pandemic. Traditional indoor malls were closed due to stay-at-home orders, and rent collections from tenants seized entirely. Anchor tenants, such as JCPenney and Nieman Marcus, filed for bankruptcy and permanently closed many stores, according to a report by CNN. Additionally, bankruptcies by major mall operators, including Washington Prime Group and CBL Properties, each of which operate more than 100 malls, negatively impacted the sector. That said, malls are bouncing back far quicker than anyone expected.
In part 1 in our review of the Top 10 retail brands for 2022, we shared that retail was one of the hardest hit sectors given the challenges presented by the COVID-19 pandemic. In fact, the challenges changed commerce as we know it. Many retailers closed their doors forever, while some developed new and effective business strategies. In the first part, we discussed Placer.ai’s white paper that broke down expanding retail brands to watch in 2022, and specifically analyzed Raising Cane’s, Dutch Bros. Coffee, Gopuff, Blink Fitness, and Warby Parker. In this second installment, we will dive into the success of Allbirds, Arhaus, P0pshelf, Burlington, and Sephora inside Kohls.
Throughout the COVID-19 pandemic, we’ve witnessed many retail stores closing their doors for good, which ultimately led to a massive disruption of commerce. Retailers and brands were met with a variety of short-term challenges around COVID protocols, health and safety, labor force, cash flow, consumer demand and marketing. Although retail was one of the hardest hit sectors over the past two years, some retailers are coming back stronger than ever. Placer. Ai, a leader in data science and analytics, understanding and predicting industry trends, and breaking down top performing brands for any state, city, or zip code across a dozen categories, released a white paper that breaks down expanding retail brands to watch in 2022. In this blog, we will share insight provided by the report, which you can access here. Understanding what makes a retail brand succeed through (what feels like) impossible circumstances can make us all better investors and business owners.
A new report by NAR shows that retail markets across the country are showing promise. In fact, strong year-over-year gains in asking rents were recorded in Q3 2021. That primarily occurred in Midwestern, Southwestern and Southern metros such as Akron, OH; Las Vegas, NV; Tulsa, OK; Salt Lake City, UT; Fort Lauderdale, FL; Jacksonville, FL; Atlanta, GA; Nashville, TN; Tampa, FL; and Cincinnati, OH.