As we prepared to close out 2020, I’m sure many of you reading this thought to yourselves, “Thank goodness, let’s get 2020 over with and move on!” I can’t say that I blame you. It’s understandable that everyone has a different perspective. People have been impacted differently, and perhaps still have feelings of unease surrounding the pandemic, the economy and most importantly family and loved ones.
Our Monthly Market update is a week late (oops!) but the good news is that the stats about December haven't changed since last Monday! The commercial real estate market as a whole isn't expected to rebound fully for a good long while, but there are sectors that have been surviving - even thriving - through the last 10 months!
The annoyance with these emails is even further exacerbated by the fact that it is VERY possible that your household was effected by all of the shutdowns due to COVID-19. According to the Fed 20 percent of all employed people were laid off or furloughed in March along with an additional 6% who were working reduced hours or on forced leave without pay.
July showed some promising numbers when we took a look at our monthly report!
The number of lease transactions are (WAY) up from last month. On top of lease transactions being up, we also saw that leases were being signed at 107% of the asking lease rate which is good news for landlords!
Not surprisingly retailers are a litttttle leery signing new leases in the midst of a pandemic. Even with businesses beginning to open up across the country in May and June, there are still too many unknowns out there.
Among those questions are:
Could this be the jab to the throat brick-and-mortar retail was trying to avoid? Back in February forecasts were predicting that U.S. retail would see moderate growth somewhere around 2.8% in 2020. This was PC (pre-COVID), of course. Now, the newest available data is showing that U.S. retail sales will most likely decline 10.5% this year, and those getting hit the hardest will be brick-and-mortar retail stores.
Normalcy in everyday life certainly seems like a distant dream for most of the United States right now. With radical changes to how we work, shop, eat and otherwise live thrown at the country so suddenly, one thing is for certain – the way we go about our lives is going to be very different once the dust has settled from this COVID-19 pandemic.
As the first quarter comes to a close, I wanted to take a moment to share my perspective on a growing trend that seems to be taking shape across the retailer landscape...big box stores, regional stores, service businesses - no one is exempt. What has happened to the service in the phrase ‘customer service’?
Even with a strong Holiday season at the end of 2019, brick and mortar stores have been struggling to increase in-store sales and compete with online giants. Coming into 2020, experts anticipated that there were going to be a number of store closings in addition to the previously announced upcoming closings.
Lucciano‘s Italian Ristorante & Bar has leased 5,100+/- SF adjacent to Shaw’s Supermarket. Owned and operated by Tina and Lou Hatsiandrou the new space is almost triple the size of their previous restaurant where they built up a local following and reputation for offering gluten free pastas and baked goods for 20 years. The new restaurant has 164 seats and a custom-designed wooden bar top that seats an additional 18 guests.