It's been a busy news week for watchers of Internet retail. Cyber Monday's results are in, and it proved to be record shattering: a 20.6% increase over 2012 sales, according to IBM Digital Analytics Benchmark.

Ironically, while shoppers were busy clicking on their smartphones, tablets and computers, the US Supreme Court declined to review a New York case involving efforts to compel online retailers to collect sales tax from shoppers in areas where they do not have a physical presence. Instead of having a national precedent, online sales taxes remain a state-by-state issue, unless the controversial Marketplace Fairness Act is passed.

Both topics are likely to be discussed at next week's ICSC New York National Dealmaking conference. But few analysts are looking at the real estate investment implications of growing online sales. One exception is Chris Muoio, senior associate and economist of Auction.com, who notes that ultimately, it all comes back to basics.

“With retail markets facing the secular shift towards e-retail, local economic dynamics will become even more important in driving retail property fundamentals,” Muoio says.

An example is Texas, “whose robust local economy is driving a recovery in retail fundamentals even as most other US markets struggle to gain momentum,” Muoio adds. “No longer can one just buy retail as a cyclical economic play, as market performance is becoming increasingly localized.”

Just as the Supreme Court seems to be saying, all retail is local.

Look for more from Muoio in a commentary on GlobeSt.com in preparation for the ICSC New York National Conference, where he examines several East Coast markets and why Santa is delivering gifts to some investors and lumps of coal to others? “New York City's retail market is strong and healthy thanks to a robust local economy and employment has risen to an all-time high,” he says.

Instant Insights /

Cyber Sales and Taxes

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