MIAMI—Retail can be impacted by any number of factors. The economy and consumer confidence are chief among the influencers. But there are other forces at work that don't qualify as X factors yet are reshaping the industry.

GlobeSt.com caught up with Tim Blum, executive vice president and managing director of HSA Commercial Real Estate's retail division, to get some insights in part two of this exclusive interview. You can still read part one Which Trade Areas Will Win Big Retailers in 2017?

GlobeSt.com: E-commerce is an ongoing issue we discuss. How will this continue to impact retail real estate in 2017?

Blum: E-commerce is likely to continue to have a dramatic impact for those merchants whose products are easily bought and sold online. The challenge for retailers is to define a unique value proposition—whether through exceptional customer service, expansive product selection, exciting promotions or enjoyable experiences—that will attract customers on a regular basis.

Similarly, developers like HSA Commercial Real Estate are paying close attention to the rise of e-commerce and merchandising their projects with tenants that are best-positioned to outlast the immediate impact of online shopping. For example, our recent Calhoun Crossing shopping center development in Brookfield, Wisconsin, features three anchor tenants: Fresh Thyme Farmers Market, Total Wine & More and Designer Shoe Warehouse.

Those anchor tenants were all specifically chosen because of their capacity to attract customers to the project regularly. Fresh Thyme offers a tremendous selection of produce that changes daily based on seasonal supply and freshness; the well-trained staff at Total Wine & More can impress and educate customers with their extensive knowledge of wine and spirits; and Designer Shoe Warehouse has constant promotions on the latest footwear styles. Those are the types of brick-and-mortar shopping experiences that cannot be replicated online.

GlobeSt.com: How will demographic shifts impact retail real estate industry in 2017? And what are the implications?

Blum: Retailers and developers alike must be mindful of how to cater to the growing number of millennials in this country. By definition, millennials are more technologically adept than previous generations and, therefore, have an unlimited number of ways to shop online through either desktop or mobile devices. Therefore, retailers and developers must cultivate authentic experiences that encourage brick-and-mortar shopping.

For developers, this could mean forgoing national chain restaurants in favor of local establishments that make the dining options of a particular shopping center or mixed-use project more unique. At The Mayfair Collection, for example, HSA Commercial partnered with many of the best-in-class local restaurateurs to create a regional dining destination that appeals to both shoppers and potential future residents of the 69-acre mixed-use development.

Some shopping centers are struggling. Find out why in this column.

GlobeSt.com: E-commerce is an ongoing issue we discuss. How will this continue to impact retail real estate in 2017?

GlobeSt.com: How will demographic shifts impact retail real estate industry in 2017? And what are the implications?

Some shopping centers are struggling. Find out why in this column.

Instant Insights /

Two Key Factors Impacting Retail Real Estate in 2017

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