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🛍️ Monday Market Insights - Melbourne’s & Victoria’s Retail Scene 🛍️ According to the 2023/24 Large Format Retail Directory prepared by Deep End Services, the top 10 occupiers by floor space which includes Bunnings Warehouse, Harvey Norman, and JB Hi-Fi, account for over over 2.2million sqm of LFR floor space. With Bunnings alone occupying over 650,000sqm nationally. These anchor retailers have proven to be critical in driving customer footfall and boosting the retail ecosystem, particularly more so in the large multi-tenanted homemaker centres of 20,000sqm or greater. To stay competitive in Melbourne’s evolving retail landscape, stay tuned for more insights and updates in our upcoming posts! #RetailProperty #MarketInsights #EconomicUpdate

MY ANALYSIS: The Next Domino Falls in the Great Retail Pharmacy Reset (Walgreens 1200 Store Closure Announcement) Walgreens’ announcement to close 1,200 stores over the next 36 months is the latest move in the ongoing retail pharmacy reset that has been building for years. On the surface, this might look like bad news—store closures, lost jobs, vacant real estate—but in reality, this is a healthy market correction that savvy investors and landlords have been anticipating. With Walgreens’ cap rates exploding over the past two years, many property owners holding these leases are actually well-positioned to come out on top. Here’s why: • $360 million in rent payments and an additional $180 million in occupancy costs are being shed, which helps Walgreens stem losses and right-size their footprint. • The average Walgreens floor plate is around 15,000 sq. ft., so we’re talking about 6 million sq. ft. of real estate being reintroduced into the ecosystem. • This space will need to be repositioned—and there’s enormous potential here. Creative, adaptive reuses are already emerging, particularly in prime, hard-corner locations. Think multi-tenant retail, healthcare facilities, or mixed-use developments. • While uncertainty lingers around whether leases will expire or stores will go dark, landlords should be seeing the opportunity for better long-term outcomes. In many cases, this reset could allow for higher rents, more stable tenants, and long-term gains in value. Rather than fearing this change, it’s time to embrace it. With smart strategies and a bit of patience, these closures could lead to winning real estate transformations across the market. #CRE #RetailPharmacy #Walgreens #CapRates #RealEstateStrategy #MarketTrends #RetailReset #CommercialRealEstate #NetLease #NNN

Early bird registration pricing ends on Thursday, August 1st for our InterFace Kansas City Retail conference. This networking event will be held on August 22nd, hosted at The InterContinental Kansas City. TOPICS TO BE DISCUSSED: Economic Outlook: Panelists will delve into economic factors shaping retail property values and investment activity in Kansas City. Valuations and Investment Trends: Where are current valuations and what is the forecast for retail property values in Kansas City? Occupancy Rates and Rent Rates: How have occupancy rates and rental rates trended in the last year and what is the expectation for the next 12 months? Leasing Dynamics in KC Retail Space: Leading Kansas City retail brokers will share insights into demand and activity in the market. New & Growing Retailers: Which retailers and restaurants are seeking space in Kansas City? Tenant Preferences and Landlord Strategies: How are landlords and tenants changing tactics to meet evolving consumer demand in Kansas City? Evolution of Tenant Mixes: How are tenant mixes changing to draw more consumers more frequently? What are the strategies for entertainment retail and food & beverage tenants? Retail Real Estate Opportunities in KC Submarkets: Where is the greatest potential for growth in retail real estate in Kansas City? Which submarkets should we watch and what factors will determine growth? Learn more about the challenges and opportunities shaping the dynamic Kansas City retail market. And connect with the decision-makers buying, selling, financing, and brokering deals, as well as those spearheading development, redevelopment, and leasing initiatives in Kansas City. Register Here: https://cvent.me/25MmZ1 #InterFaceKansasCityRetail #retail #commercialrealestate #cre

According to an article by Cushman & Wakefield, despite increased construction, rent, and operation costs, store productivity has risen in the U.S., leading to expansions. Here are the recent trends in retail: 🏬 So far this year, store openings have outpaced closures. If this continues, it will mark the third consecutive year of growth, a pattern not seen in the last decade! 🛒 The top retail stores driving more openings are discount stores, apparel/shoes/accessories, and grocery/convenience stores. 🛍 Open-air shopping centers are outperforming traditional malls due to their proximity to residential areas, having essential retailers (like grocery stores) within the shopping center, and providing a more diverse tenant mix. 📈 Retail spaces in highest demand are either 2,500 SF or smaller, or larger than 2,500 SF. For more information, visit their article at: https://lnkd.in/gAyuribv #CRE #Retail #Tucson

JUST CLOSED: A prime 4,500 sq. ft. retail center in Orange County. Anchored by Walgreens (NAP), Makena Plaza features national tenants Subway and First Bank. Click the link to read the press release: https://lnkd.in/e9JZiHpU #stripcenter #westminster #orangecounty #rtailrealestate #retailinvestments #retailinvestmentsales #retail #retailnews

Have you heard the latest buzz? The retail sector in Metro Phoenix is on fire! 🔥 The Metro Phoenix retail sector has seen a spectacular recovery since the pandemic, with our Q1 2024 Phoenix retail market report stating that “since Q4 2020, Phoenix has rebounded, creating a national leading market with demand surpassing availability.” James DeCremer notes that vacancy is the lowest he has seen in his 21 years as a retail broker. Matt M. notes “What you had there in the first quarter is some new space being delivered and not all of it being absorbed. You also had some closures of box spaces. I don’t expect [negative absorption] to continue. I think we’ll be back on the positive side for the rest of the calendar year.” AZ Big Media: https://lnkd.in/en4BSZv6 #Retail #Phoenix #AYdifference

Prime Retail Space Available at Washington Point in Northglenn

DCC member organization H-E-B’s impact in #NorthTexas is extending beyond the stores. As a major creator of jobs, the grocery chain employs 3,000 people across its Metroplex stores, hiring from DFW’s large and growing talent pool. H-E-B also accounted for 22% of all retail construction in Dallas-Fort Worth in 2023, prioritizing rapidly-expanding areas north of #Dallas to begin its foray into the region. “As we think about the future of our business and position ourselves for success, we look at several deciding factors such as market demand, strong population growth and real estate availability,” said Mabrie Jackson, the company’s senior director of public affairs for the region. Read more here: https://bit.ly/49qYbmM

Dallas' retail market is heating up and it doesn't seem to be slowing down! Fort Worth Report provides a very informative update on retail sector performance. Retailers and grocery stores are major demand drivers for leasing. #Retail occupancy in Dallas-Fort Worth exceeded the highest rate at 95.2%.   Despite high construction costs and phased construction, grocery store construction is at a record high. 14 grocery stores are opening or under construction in the DFW area. The highest occupancy rates were observed in #shoppingcenters and communities with grocery stores as anchors. Read more here >>>https://rb.gy/tfqaga #retailcommercialrealestate #retailoffice #dallas #dfw #dallascommercialrealestate

Industry News: Target’s ‘winning retail format’ includes large — and small — store expansions Target Corp. is pulling back the curtain on its 2023 new store openings and remodels for a glimpse of what’s to come as the retailer set an ambitious pace moving into 2024. “From more stores to more deliveries, we’ve set an ambitious pace moving into 2024," the company said in a blog post, in which it offered up details about its “winning retail formula.” Target opened 21 new stores across 10 states nationwide in 2023, with locations ranging from bustling urban hubs and sprawling suburbs to college campuses. Nearly half of the store openings were in California and New York. Four were in new markets for Target: Jamestown, N.Y.; Kill Devil Hills, N.C.; Quincy, Ill.; and Grass Valley, Calif. (The locations of the 21 new stores Target opened last year listed at end of article.) Twelve of the stores featured Target’s larger format, which averages 125,000 square feet and boasts an open layout, expanded assortment and large backrooms to support the chain’s same-day fulfillment services. The retailer went even bigger in Prosper and New Caney, Tex., and Yonkers, N.Y., with stores that averaged 135,000 square feet. ————————————————— 💥Over 16 MILLION Square Feet Represented💥 ✅Visit https://lnkd.in/gKX9JcPy for more! ————————————————— #realestate #newenglandretail #property #forsale #retail #realestateinvesting #business #broker #realestatenews #properties #investor #investmentproperty #connecticut #nerp #newengland #connecticutnews #newenglandrealestatenews