With store closings and the bankruptcy of major retail chains, the retail industry is changing before our very eyes. Online retailers are thriving while storefront retailers are struggling. Recent developments are only a prelude to the many more changes to come in this industry. How can commercial investors adapt to the changing landscape of retail space in Boston?
Focus on Service-Oriented Businesses
Online sales are growing in leaps and bounds, but not everything can be sold online. Service-based industries will always need physical space. In fact, new types of service and entertainment venues, such as virtual reality theme parks, are trending. Repurposing retail space to service and entertainment makes perfect sense. Both have similar requirements for parking, visibility, and consumer access. Building sizes and interior space needs are also common. By shifting to new and growing consumer models, CRE investors can leverage and continue to profit from existing assets despite the changing landscape of retail space in Boston.
Shift to Distribution Centers
Although consumers buy online, retailers need local physical space to store inventory and manage distribution operations. Therefore, there is a natural shift from retail storefronts to distribution space. With consumers demanding shorter delivery times, online retailers are focusing less on centralized distribution and more on geographically convenient centers throughout the country. CRE investors can capitalize on this by adapting assets in key locations to this new real estate need.
Real Estate Market Stability
The changing landscape of retail space in Boston does not necessarily make commercial real estate more volatile. It is still a relatively safe investment alternative with reliable returns. It simply requires investors to adapt and adjust to market changes in order to identify opportunities and maximize profitability.
Rely on Local Experts
Whether you have retail space, flex space, or any other type of commercial real estate in and around the Boston area, rely on local experts to properly position that asset for lease. By understanding the region and changing market conditions, the ABG Realty team has the knowledge, network, and resources to help you achieve your goals. Contact us to schedule a consultation!