How Retail Can Face Its Greatest Challenges

Parton: “There are good things happening in the retail sector. But it is particularly market dependent; markets where there are big barriers to entry or where there is development weakness are where we are seeing the best opportunities moving forward.”

ORANGE COUNTY, CA—From big-box downsizing to Internet shopping and rising costs, the challenges retail real estate faces are great, but the nimblest and most resourceful players will win in the end, experts tell GlobeSt.com. We spoke with a number of executives who have a strong handle on different aspects of the sector to find out some of the biggest challenges retail real estate is facing and how it is overcoming these challenges. Stay tuned for a more in-depth feature on this topic, our Annual Retail Review, in Real Estate Forum’s May issue.

Lindsay Parton, president of DJM Capital Partners, tells GlobeSt.com the greatest challenge retail is facing is the downsizing of big-box retailers ranging from Sears to JCPenney. “All of the larger big boxes are challenged in trying to get rid of space. Most of this space will be turned into some other type of use, either office or multifamily. This situation does provide both challenges and opportunities. Operators like DJM are taking advantage of these opportunities while we have them, but it is a fundamental rebalancing of the retail format around America and around the world. Particularly in the US, we have come to be essentially over-retailed.”