Jon Hipp

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As we move forward into 2020, retailers have to keep up withtrends and new ideas to continually draw consumers in and spendmoney. These new, creative solutions are not limited to just onesector as we are seeing big-box stores, banks, etc. come up withdifferent tactics to employ. In the future more and more retaillocations will continue expanding off this and keep coming up withinteresting ways to drive in foot traffic.

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In the big box sector, one example is the retailer RestorationHardware, or as it is called now, RH. Known for selling furniture,recently the brand has decided to incorporate a dining space intotheir stores. In essence, it is creating a hospitality space insideof its retail location. This restaurant space is usually a mainfeature, not located in the back or off to a side, such as rooftopcomplete with a bar. This type of expansion could keep customers inthe store longer allowing them to look around longer andpotentially sway them into a purchase.

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Another sector embracing this trend is banks. The setup in atypical branch consists of tellers along with a few offices, buttoday we can see this changing. Layouts are becoming more open,less teller space is being set up and more offices beingincorporated into the space for consultations.

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Customers will come in and if they need to make a deposit orwithdrawal can use an atm or if they prefer, they can wait to meetwith an individual worker . Some banks are even taking this a stepfurther. Capital One has developed the concept of a Capital OneCafé, allowing people with a Capital One account to come in andwork, relax, or hangout similar to a coffee shop layout.

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The point of all this is to add value to the store and try andget customers to spend as much time as possible on location. Goingforward this is a trend to watch for in other big box and banklocations, as well as possibly other sectors embracing thesetactics. As the numbers grow, these properties will become morevaluable for investors and buyers, placing a premium on them whenthey are added to the market.

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Jonathan Hipp

Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.