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Sign in Sign up for a FREE subscriptionNew retail concepts gain traction, improving sector fundamentals
Although several bankruptcies involving high-profile retailers have captured headlines, the sector’s performance continues to improve as physical retailers explore omnichannel concepts to combat e-commerce, according to Marcus & Millichap’s midyear 2018 report.
With vacancy continuing to recede, 10 basis points to 5 percent, landlords are exploring new ways to fill the space. Today’s mix may include off-price retailers, health clubs and several other relatively e-commerce-resistant concepts.
This year’s retail construction activity will remain restricted a by still-tight retail lending environment. Additionally, space vacated by big-box retailers has been cut to smaller footprints suitable for expanding retailers.
Online retailers are entering the brick-and-mortar space to broaden their reach, like Amazon, which decided to forge a physical footprint through last year’s Whole Foods acquisition. In addition, Amazon Books continues to expand