Colorado-Real-Estate-Journal_416345

August 2024 — Retail Properties Quarterly — Page 3 www.crej.com I t goes without saying that the retail market has slayed some formidable giants over the last 15 years. The rise of e-commerce. The brutal impacts of the COVID-19 pandemic. Seismic shifts in consumer preferences. All have meaningfully tested the resil- ience of the brick-and-mortar model. Yet, despite these pressures, physical retail spaces have not only endured but thrived, showcasing an arguably unrivaled adaptability. If you’re a property owner, the takeaway is clear: Those who evolve alongside retailers by offering creative solutions are best positioned to cultivate long-term rela- tionships and achieve success in this ever-changing environment. n The resilience of brick-and-mor- tar. It wasn’t long ago that headlines were rife with predictions of retail’s demise. “Retail is On Death Watch, and it’s all Amazon’s Fault,” blared the New York Post in 2017. And here’s a beacon of restraint from Business Insider in 2021: “Retail Apocalypse: The Industry Is on the Brink of Col- lapse.” These breathless epitaphs weren’t outliers. They were reflections of conventional wisdom that turned out to be dead wrong. While online shopping has certainly transformed the landscape, and while the pandem- ic landed a hard punch, brick-and- mortar stores have shown a unique ability to adapt, evolve and rise above it all to the tune of near record-break- ing occupancy rates at last check. A key factor in this resilience is the flexibility and adaptability of retail spaces. Retailers no longer stick to traditional store formats. Some retail- ers have ditched the prototypical store envelope altogether, opting for dynamic spaces that can be reconfigured for different uses. This flexibility allows retailers to test new concepts, cater to local markets and respond swiftly to changing consumer behavior. The rise of omnichannel retail- ing during the early to mid-2010s is a prime example. Once a novelty, buy- online/pick-up-in-store formats are now so common it’s hard to imagine shopping without the option of swing- ing into a reserved parking stall and popping your trunk so your personal shopper can deliver your order. This evolution came over time, reflecting the gradual but steady adaptation of retailers to new consumer demands. Now retail spaces are multipurpose hubs, serving as showrooms, fulfill- ment centers, and customer service points all at once. n The role of the property owner. Property owners play a crucial role in facilitating the adaptability of retail spaces. This involves more than just providing space; it means partnering with retailers to support their busi- ness models and growth strategies. In this regard, the most direct path to success is investing in innova- tive site design and infrastructure to enhance the functionality of retail spaces. Sometimes it may take state- of-the-art design and engineering, but most of the time all it takes is a little outside-the-box thinking. That blight- ed alley? It’s actually a future online pick-up drive-thru lane. The neighbor- ing unit about to vacate? Say hello to the anchor’s new fulfillment center. Innovation of almost any size or shape can create opportunity. When we acquired a Walmart Neighborhood Market in Provo, Utah, for example, we sought to identify creative ways in which we might be able to enhance the tenant’s operations and sales. We went to Walmart and said, “Hey, we notice you don’t have an online grocery pickup component at this store. Your lot is under-parked and inefficient for customers. We can address these things for you with a few enhancements.” They liked our ideas enough to extend their term. They weren’t asking for our help, but we created a win-win by identify- ing solutions to problems they didn’t know they had. And all it took was relocating a small shop tenant and introducing a jackhammer to an obso- lete parking lot. Such flexibility in adapting and repurposing spaces meets the evolv- ing demands of modern retail and boosts operational efficiency for retailers. Additionally, property own- ers can significantly support the retailer’s objectives by championing entitlements and helping streamline the process for obtaining necessary approvals. This proactive approach reduces the time and costs associated with implementing new retail con- cepts, making it easier for retailers to innovate and thrive. n Looking ahead. In an ever- evolving market, what’s next on the horizon? Our best guess is artificial intelligence, which is poised to revo- lutionize retail with a host of new features that will impact the physical envelope, including adaptive store layouts, interactive fixtures, smart checkout solutions and energy man- agement systems. If you’re an owner, don’t just imagine constructing mod- ular spaces to accommodate adaptive layouts, virtual fitting rooms, cashier- less stores and augmented reality demo zones. Plan on it. Incorporating these artificial intelligence applica- tions into brick-and-mortar designs will not only enhance the efficiency and functionality of physical retail spaces but also create more engaging shopping environments that give your tenants the competitive advantage. And it will galvanize your reputation for providing well-maintained, high- performance spaces. n Final thoughts. The adaptability of the retail market remains its great- est asset. As consumer behaviors and preferences continue to evolve with advancements in technology and shifts in societal trends, retail spaces must also transform to meet these changing demands. In fostering environments where retailers can experiment and grow, property owners will build strong, enduring relationships with their ten- ants. By staying ahead of trends and supporting the evolving needs of the retail landscape, they will not only attract forward-thinking retailers but also ensure their properties remain relevant and valuable in a rapidly changing world. s jkatzer@acd-co.com Adapting to thrive in a changing landscape ADAPTABILIT Y Josh Katzer Partner and director of retail development, Armstrong Capital Development Thornton Town Center 9901-10005 Grant Street Thornton, CO 1,600 SF – 68,645 SF retail space available For Lease. Anchor and Junior anchor spaces available for immediate occupancy. Monument signage available. Visibility from I-25. Join Home Depot, Walmart Supercenter, Sally Beauty, Sky Zone, Starbucks and other national retailers. Anthology Development NWQ Parker Road & Stroh Road Parker, CO Commercial pads available for SALE or LEASE! Mixed-Use zoning allows for a variety of uses. All off-site work, utilities, and public improvements complete. Pads ready for immediate development. High growth, high income suburban location anchored by King Soopers. Situated in the Lone Tree Entertainment District portion of Lone Tree, Colorado. Built in the year 2000 adjacent to a Regal Cinemas theater (vacant since 3/23), this property has enjoyed a great deal of success offering a variety of restaurant and entertainment options. Located in the southwest quadrant of Interstate 25 and C-470, Denver’s outer loop highway, the Lone Tree Entertainmentdistrict is highly visible and accessible to the residents that live in the South suburbs of metro Denver. The property sits just South of Park Meadows Mall one of Colorado’s top shopping destination at close to 1.6 million square feet with over 185 stores and anchors, Nordstrom, Macy’s, Dillard’s and JC Penney. Ikea, the furniture store giant anchors the northern limits of Lone Tree. The property could be purchased as an investment, owner/user investment or redevelopment opportunity. The adjacent vacant theatre is being considered for mixed-use redevelopment, including residential uses, and is currently under contract to a developer. The city of Lone Tree is proposing to place the Entertainment District into an urban renewal area which would provide incentives for improving existing properties or redeveloping those properties into different uses. 9535 Park Meadows Drive Lone Tree, CO 9633 Prominent Point Colorado Springs, CO 18,500 SF available For Sale. The space is currently built out as a restaurant and event center. Other approved uses include retail showrooms, medical of ce, brewery, winery and many others! Space is potentially divisible. 8 Outdoor Pickleball courts with removable bubble to allow for 365 days of play. York Street Yards NEC 38th Avenue & York Street Denver, CO Retail spaces available for Lease with restaurant infrastructure. Spaces range from 2,268 SF to 33,347 SF. Come join Skiptown, Beat The Bomb, Rivian, Elemental Bakery & Cafe, Stick & Feather, Cohesion Brewing, RAD Power Bikes, Craft Collective, River Bear American Meats, Adults & Crafts, and many more at York Street Yards. Allen Lampert David, Hicks & Lampert Brokerage is the premiere retail brokerage rm in the Rocky Mountain Region. 5750 DTC Parkway Suite 200 Greenwood Village, CO 80111 303.694.6082 www.dhlb.com Ken Himel & Shawn Peel For Lease Allen Lampert For Sale For Lease For Sale *AVAILABLE Grant St 178,095CPD 20,253CPD For Lease Scott Hagan & Allen Lampert N Stroh Rd S Parker Rd ANTHOLOGY SOUTH 10.88 AC ANTHOLOGY NORTH 12.23 AC Philip Hicks & Robin Nicolson For Sale or Lease Ken Himel & Shawn Peel