The summer months afford everyone with more time for activities, travel and especially shopping. Apart from winter holidays, the summer brings one of the largest spikes of sales for retail properties during the year. It is also a time of significant activity increase in the retail real estate market.
The retail real estate market pertains to the buying, selling and leasing of commercial real estate properties which are used exclusively to market consumer goods and services. There is a larger variation of elements involved in retail real estate as opposed to other types. The return on investment (ROI) in this market can be much more volatile and extreme in ranges being influenced by the financial strength of the retail owner, the concept of that entity, growth, and acceptance by the consumer and financial markets.
“Retail real estate is rapidly transforming as old formats and concepts are fading away and new ones emerge,” says Ted Pfeifer, Vice President – Retail for Landmark Commercial Realty. “Since entering retail real estate over 20 years ago, I have seen much more rapid changes annually, especially in technology, in depth analysis, communication, and complexity. I see no reason to assume this will not continue to be the case.”
This has been most easily seen with consumer goods that have been transformed by recent advances in technology like movies or books. As the way we consume retail goods changes, so does the demands on various retail properties and how they decide to do business and offer merchandise.
One thing about the retail market that is not changing is the type of properties that remain popular with investors. “Presently, free standing properties with excellent visibility, accessibility, and with significant population bases are in demand, and will continue, in all types of retailers, especially restaurants,” adds Pfeifer.
The importance of high visibility and high traffic locations for a retail property cannot be overstated. Also, an agent, like Ted Pfeifer, who can provide these types of locations, could not be more valuable. Finding the right location, for the right type of retail property does not always come easy. The retail market is an ever changing landscape. An agent who understands his area of service and is constantly plugged into the market changes can provide the information needed to help an investor find the perfect retail location for their goods and services.
“The field of retail real estate requires a character and disposition of individual that accepts, perhaps revels, in change, quick movements, time-sensitive reactions. The field itself is a mixture of expertise, communication in all forms, and art,” says Pfeifer. “The ever changing projects and complexity intrigued me long ago, and continues to do so.”