Mike Conway, Vice President of National Accounts and Retail Partnerships at PECO, said in prepared remarks that suburbanization as a theme continues to play out, supported by strong macro tailwinds including long-term work from home trends and an aging millennial cohort seeking space to raise their growing families.

"As inflation and supply chain issues continue to create obstacles, retailers are recognizing now more than ever the importance of locating closer to their end consumers, and this is driving many of the trends today," Conway said.

Among the most active within PECO's portfolio are healthcare providers, which aim to be more accessible and convenient for their patients through open-air retail storefronts that create a comforting, welcoming environment and experience.

Quick-service restaurants are introducing no dine-in and drive-thru-only locations, reflecting strong grab-and-go trends that arose during the pandemic, PECO reported.

Addressing Web 3.0, Ashley Casey, senior director of national accounts at PECO, said it will be interesting to watch how retailers integrate Web3 and the metaverse into their omnichannel strategies.

Several leading brands have already introduced NFTs and others have filed for virtual goods to be sold in virtual stores.

Retail experts with whom GlobeSt.com spoke repeated many of these themes while adding their own unique twist. Read on for their insights. 

Appetite Reconciles with Consumer Demand

Chris Angelone, senior managing director and co-head of US Retail Capital Markets, JLL, tells GlobeSt.com that retailers continually seek to be closely aligned with consumer needs and experiences. 

"The most successful retailers over the past two years were the ones that were adaptable and able to change their operating model, and now they are more comfortable continuing to evolve, whether that be experiment with their format, introduce curbside pickup or integrate new technology," Angelone said. 

"Ultimately, investor appetite always reconciles with consumer demand and behavior for both tenants and property format. Capital wants to invest in assets that can meet the market today and in the future."

A Market 'Opportunity' in Dining

Laura Schwartz, regional vice president, leasing, Simon Property Group, tells GlobeSt.com that as she looks at 2022 and beyond, Simon centers will aim to continue to push the envelope in shopping, dining, and entertainment. 

"We see a significant market opportunity in dining, with several first-to-market dining concepts, such as Common Craft at Burlington Mall in Massachusetts, coming this year," Schwartz said. "Shoppers are also looking for new and innovative experiential retail—not just a place to transact but a place to experience a brand and engage with it in a new way. 

"Additionally, we expect to see a continuation of the trend of e-retailers opening up brick-and-mortar stores at our centers. We're seeing great value and success with physical outposts for e-commerce brands, from Warby Parker to UntuckIt and Joss & Main, which will open its first-ever physical store at Burlington Mall later this year.

"Finally, strong foot traffic and sales numbers across nearly every category is apparent, but particularly in the luxury category. This we expect will continue into the future."

Buy Online, Pick Up in Store Here to Stay

Patrick Toomey executive director, Institutional Property Advisors (IPA), tells GlobeSt.com that the COVID pandemic accelerated the omnichannel shopping experience.

"As has been true in the past, successful retailers adapted to the consumer, and are surviving—some even thriving and doing better than pre-pandemic," Toomey said. "Adapting to the 'buy online, pick up in store' is a common theme, and the retail store is part of the last-mile distribution system for many retailers."

He agreed that the drive-through-only concept is also gaining in popularity. 

"Many retail centers have been improved as there was a 'shake out' of weaker tenants, allowing owners to re-tenant their centers with a tenant mix that is more conducive to our new reality."

Grocery Stores Make Sense in Mixed Use

Samantha Bennett, associate principal at Cooper Carry, tells GlobeSt.com, "There is a heavy appetite for grocery-anchored shopping centers, a sector in commercial real estate that proved to be almost pandemic-proof. 

"As the built environment experiences the next level of densification, grocery-anchored sites are well-positioned to support future mixed-use development."

Cooper Carry has seen an uptick in design-related requests when it comes to repositioning and refreshing these vital community resources, Bennett said. Upgrades include façade renovations, new signage, lighting and outdoor amenity areas.

"Investors and tenants are attracted to grocery-anchored centers because they offer more visibility and foot traffic than other shopping centers," she said.

Dessert Retail Less Reliant on Indoor Dining

Cristina T. Sanchez, real estate attorney at Duane Morris, tells GlobeSt.com that she is seeing an increase in quick-service food stores, dessert and other sweet-focused food shops in shopping centers. 

"These concepts allow retailers to be less reliant on indoor dining and are likely a reflection of the trend following the pandemic to take-out and/or have delivered food quickly and comfortably," Sanchez said.

Placemaking Has Its Place

Francis X. Scire, head of leasing at Nora, a curated mixed-use district in West Palm Beach, tells GlobeSt.com that the client experience for shopping has evolved just as has the shopping center and development industry. 

"People are craving an experience more rooted in placemaking when choosing where to spend their valuable time and consumable dollars," Scire said. "As shopping trends keep evolving, retailers will continue to seek locations that cluster best-in-class hospitality offerings because they know that's what drives traffic and ensures proximity to a reliable customer base."

Consumers Power Forward

Macerich's CEO Tom O'Hern tells GlobeSt.com that at his company's regional town centers across the country, he continues to see the resiliency of the American consumer on display. 

"Since 2021, shoppers have come roaring back to our centers to shop with a purpose," O'Hern said. "People are enjoying a wide variety of in-person experiences at our properties—from shopping at physical stores and in-restaurant dining to going to the movies and readying their homes for a new season. Retailer leasing demand across the broad span of categories also remains strong."