Is retail really going to be obsolete?

The facts about where retail is going…

The actual ratio of retail closures is 90 to 10. This is according to speakers from the capital markets panel at RealShare Southern California.

There may be a lot of headlines covering the failure of retail stores, but it is not as bad as the media is making it out to be. The reality is 90 to 10 and brick and mortar locations are going anywhere.

Experts state that commodity retail does not warrant caution. B and C class malls are definitely a concern from an investment perspective, but brick and mortar is safe.

So, where one individual states that New York retail is a disaster, with a high vacancy rate. Others advide to look deeper. What kind of retail is it? There are good and bad retail choices for this market, and much of retail’s quality is based on tenant mix and, of course, location.

It’s important to look at the competition. Consumers are shopping, but the majority of this traffic is driven by very strong brands. When looking at the competition, you can best understand what the tenant base is. Investors are not excited to finance a “no-name retailer” for instance.

While there is definitely two sides to this debate, it is agreed that not all retail is becoming obsolete. We are in a different market, and strategies need to be looked at differently before making retail decisions to compete in the market.

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