IRVINE, CA—We will continue to see a transformation of neighborhoods and submarkets throughout the West Coast as they adapt to consumers' retail preferences, JLL's Howard Wong tells GlobeSt.com. Wong recently joined the firm as a VP based in Orange County and will support the its investor and owner clients with their leasing efforts and merchandising strategy for retail properties on the West Coast and in Hawaii.

Wong brings 25 years of leasing experience in the shopping-center and retail industry through the US and has also worked internationally on tenant-presentation projects and with investors from Asia Pacific and China. Prior to joining JLL, he was managing director and director of leasing for Passco Cos., where he oversaw the leasing services of the firm's retail portfolio of regional malls, lifestyle centers, power centers and new developments and co-managed the acquisitions of shopping centers and street-retail redevelopments.

We spoke with Wong about the challenges to retail leasing on the West Coast, which new types of tenants are coming in and how landlords are partnering with retail tenants to boost their success in this market.

GlobeSt.com: What are the biggest challenges to retail leasing in the West Coast right now?

Wong: The biggest challenge in retail leasing on the West Coast is keeping up with changing consumer demand and demographics. We are seeing demographic shifts of cities and areas throughout the West Coast, including the growth of the Asian and Hispanic population. This has brought new opportunities for Hispanic and Asian grocers, as an example, to fill vacant big boxes as well multiple food and services for this niche.

Also, the increase in high-density housing has changed the retail landscape in urban and suburban areas. There are many areas that were dilapidated or under developed. However, the new apartment and condos growth has attracted new consumers in these neighborhoods.

GlobeSt.com: How do you see this sector changing as we move into the final quarter of the year?

Wong: We will continue to see a transformation of neighborhoods and submarkets throughout the West Coast as they adapt to consumers' retail preferences.

GlobeSt.com: What new types of tenants are seeking retail space in the West, and what's coming down the pike?

Wong: Several types of tenants are targeting Millennials and Generation Z as well as the Baby Boomers that are or becoming empty-nesters and continue to grow on the West Coast. This includes healthcare tenants ranging from urgent care for convenience to specialized healthcare facilities for Baby Boomers. In addition, specialized health and wellness from cycling, yoga/Pilates studios to equipment and apparel have increased, especially with the West Coast lifestyle of living.

GlobeSt.com: What are landlords doing to partner with retail tenants and boost their success in this market?

Wong: Landlords are becoming more creative and flexible in structuring deals and opportunities with pop-ups and temporary tenants bringing new, innovative concepts from independent to non-traditional retailers, including manufacturers. We're seeing many of the top brands in the industry from the electronic and auto industry implementing showcase stores to market and brand their image and products. These stores are attractive to the consumer and shopping centers since they are well-known brands that create synergy, and the majority offer an interactive experience for the consumer.

Also, landlords are implementing food halls where they are creating turn-key build-outs to attract popular chefs and new food and restaurant concepts to create new synergy and traffic to the shopping center. We have seen many in the major larger West Coast cities, but this has continued to expand into the smaller markets, towns and local neighborhoods.

Instant Insights /

Demographic, Consumer-Demand Shifts Challenge West-Coast Retail

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