Build Me Up: How the Pandemic Has Shifted the Future of Retail Real Estate
The COVID-19 pandemic brought the world to a halt in 2020. Every industry was affected, and retail real estate was hit particularly hard. As e-commerce continues to rise and brick and mortar stores are closing their doors, realty properties need to adapt and evolve. Essential businesses like grocery stores are busier than ever, but ongoing staffing shortages are impacting everyone. On the latest episode of Kraus-Anderson’s Build Me Up podcast, KA’s Senior Vice President of Development Matt Alexander, Director of Development Tim Marco, and Leasing Agent Dan Mossey discuss retail trends in real estate.
Retail tenants struggled through the height of the pandemic, with many forced to close their doors. As restrictions are being lifted and businesses are recovering, they are facing new challenges. Between the current labor shortage and supply chain issues, businesses are challenged with staying open, with many being forced to limit business hours to keep up. Businesses are increasing wages and adding other incentives to attract workers, but it all comes at a cost.

Consumers are staying home and cooking more often, a rising trend from the pandemic that is keeping grocery stores busy and even expanding. The big box stores that once anchored many KA shopping centers, like Valley West, Clover, and Southtown, are being filled with bigger grocery stores. Part of the success of these decades-old shopping centers has been their ability to adapt and evolve as trends change. High-visibility locations help maintain regular traffic, and continual maintenance and investment into curb appeal and amenities keep these older facilities successful.

But they may start to look a bit different. Grocery stores are starting to change their models. While the aisles throughout the middle of the store will look the same, they are starting to fill the outer floor with quick-service food options, bars and restaurants, and other services like salons. With more consumers turning to delivery and pick-up options, these additional services will bring them in the door. With food delivery services on the rise, retailers will have to navigate the unique challenge of navigating higher traffic flow and find new ways to get consumers through the door.
To learn more about how retail properties are adapting amidst the COVID-19 pandemic, tune in to the latest episode of KA’s Build Me Up podcast. You can subscribe to Build Me Up wherever you listen to podcasts.
CATEGORY: Build Me Up