According to research and trend analysis by real estate services provider and consulting and investment management firm JLL, the retail real estate and shopping center asset class needs a complete reorientation and realignment. This is because the consequences of the Corona crisis will make the existence and stabilization of retail properties dependent on whether they manage to prevent store closures and insolvencies with an effective all-round strategy and a unique selling proposition. Major changes in the leasing market in these asset classes are to be expected, according to JLL.
This applies to both retail companies and shopping center owners. According to forecasts by JLL experts, it is all about creating a distinctive brand and a unique selling proposition (USP). While retail parks are more crisis-proof due to their specialization and high investor interest and will therefore be able to survive on the market in the future, retail operators, especially from the fashion and textile sectors, must manage to create a distinctive profile and brand and secure their existence through a unique selling proposition.
In the case of already established and commercially successful brands, which are mainly found in highly frequented shopping streets and high-streets, the experts see less risk of insolvency. It could be much more the case that shopping properties change in such a way that the areas of the shop windows gain dominance. Similar to a showroom, customers would be encouraged to make a purchase by the presentation of the goods and then do so online. This would have the effect, for example, of changing the prices of store rents to the extent that the prices for shop window areas would rise and the traditional prices per square meter for shopping areas would fall. In the future, shopping center operators will also need a USP in order to survive in the market and not be interchangeable. JLL cites the "Loop 5" project as an example.
Source: JLL
© photodune.net
