Retail Sector’s Reinvention Phase Continues
Amazon and the rise of e-commerce continue to pose challenges to Chicago-area retail, but recent evidence contradicts the gloom-and-doom headlines, suggesting the sector may be entering a prolonged period of reinvention.
According to Taylor Johnson client Marcus & Millichap, a slowing construction pipeline has led to declining vacancy rates and rising rents — good news for landlords and an improvement from 2016. After providing GlobeSt.com with Marcus & Millichap’s latest retail report, we connected the reporter with investment specialists from the firm who discussed challenges and opportunities facing tenants and landlords. Takeaways included an oversaturation of certain types of fast-casual restaurants, which are being replaced by more service-oriented businesses, and continued recovery in the suburbs, where the vacancy rate has dipped below 8 percent — the first time that’s happened since 2008.
Marcus & Millichap’s Adrian Mendoza (l) and Austin Weisenbeck (r) recently talked to GlobeSt.com about what they called a transition period for retail.