Jacaranda Plaza, a 173,044-square-foot, Publix-anchored retail center in Plantation, FL.

MIAMI—2017 is getting off to a strong start on the retail front. But where do we go from here? There are many factors to consider, from the new leasing account standard's impacts on real estate strategies to the rise of e-commerce to the adaptation of traditional retailers and beyond.

GlobeSt.com caught up with Anthony La Malfa, assurance partner in BDO's Real Estate & Construction practice and Natalie Kotlyar, leader of BDO's Consumer Business practice to get some unique perspectives. The duo offers key insights on the pop-up resurgence, interest rates and more in this exclusive interview.

Will pop-up resurgence last? “The pop-up resurgence is a trend that's likely here to stay in 2017. It doesn't just allow retailers to show off creative concepts, it's also a chance for landlords to showcase space to potential longer-term tenants,” La Malfa tells GlobeSt.com “With vacancies starting to rise in major shopping hubs like Fifth Avenue, welcoming pop-up tenants can generate revenue on otherwise-empty properties.”

Kotlyar, has more perspective: “As more traditional brick-and-mortar retailers refresh their concepts or explore new locations, one option to consider is the pop-up shop,” she says. “Pop-ups are a great opportunity to capitalize on urgency and hype around a temporary shop, as well as lower rents.”

What about the rate hike? “The December rate hike has set interest rates on an upward path into 2017, putting pressure on landlords to bring in higher rental rates to balance out the added cost,” La Malfa says. “While a rise in interest rates signals stronger demand, rental rates have long been high and perhaps unsustainable, suggesting we could see downward pressure on real estate values in the year ahead.”

Is ominichannel the way of the future? “We're in a brick-and-mortar renaissance where retailers are fully recognizing their challenges and opportunities in stores,” Kotlyar says. “We're seeing incredible tech innovations and enhancements finally reach the store, helping retailers realize true seamless omnichannel strategies. Those who aren't keeping up risk being left behind.”

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Why Some Retailers Risk Getting Left Behind

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