Retail Is Dead...And Here to Stay

It’s been a weird decade for commercial real estate, to say the least. Retail was no exception.

Before the crash of Lehman Brothers, we saw people flooding the annual International Council of Shopping Centers conventions in Las Vegas who had no business being there in the first place. Developers built lifestyle centers in locales that didn’t need them. Same-store sales were sky high for retailers that ended up not existing anymore. The flow of lattes seemed endless. Blockbuster existed. It was if there would be no end to the money flowing into the industry.

Of course, much like the tech boom, it ended.

So where does retail go from here? Honestly, it doesn’t seem that bad. Sure, we still have employment problems in this country. But people need clothes and food and entertainment and Christmas will never go away.

 Looking back on the last 10 years, the biggest story by far in the retail real estate industry was the failure of General Growth Properties. General Growth was perceived as the most successful mall company at the time, maybe not a financially (indeed, it had a ton of debt) like Simon Property Group, or flashy, like the now-bankrupt Mills Corp., which Simon bought after that firm failed. But it had prestige, with its amazing Las Vegas portfolio and trophy malls around the country.

Well, General Growth is back and never actually died. Neither will retail. Just don’t expect to light your cigars on $100 bills any time soon.