The Greatest Threat to Retail Real Estate

Lichens: “It is true that consumer buying habits are changing, but these changes incorporate more than just increasing use of e-commerce.”

CARLSBAD, CA–Changing consumer buying habits as part of a confluence of factors have created the perfect storm that is taking its toll on the retail industry right now, Real Capital Markets’ COO Tina Lichens tells GlobeSt.com. We recently reported on the firm’s May 2017 Retail Sentiment Report, which found that retail investors believe shifting consumer buying habits are the greatest threat to the industry, reinvention is the key to solving the industry’s greatest issues, anchored shopping centers are the preferred property type by a margin of 3:1 and interest rate movement is not a significant factor in investment decisions. In addition, the report revealed that more than 57% of investors surveyed are net buyers of retail properties, an indication investors looking for opportunities and the ability to “balance” portfolios previously buoyed by other asset types.

We spoke with Lichens about some of these findings and what they indicate for the sector’s future.