As technology continues to advance, more and more shoppers are buying online. Nowadays most major retailers have convenient software applications that are compatible with the latest smartphones and tablet computers. Some even allow you to safely store your payment information, reducing the amount of time it takes to make a purchase.
When you combine this with the multitudes of bargain shopping and auction websites out there, a frightening trend in commercial real estate emerges. It means that many retailers require less space. The advent of online shopping may have also contributed to the demise of a few retailers that didn’t survive the 2007 recession.
Though there’s no inherent way to amend this problem and guarantee your landlord minimal vacancies, you can counterbalance this trend. The easiest way is to stop competing against the Internet.
Furniture, cars, electronics, clothes and home goods are all popular items for online shoppers. Coincidentally enough, many of the retailers who specialize in these products had closed up shop before 2009 ended. That’s not to say that all furniture stores or fashion houses are hopeless tenants, but the online markets have clearly been established for these products.
Instead, focus on securing service providers for your client. Restaurants, car repair shops, gyms, and nail and hair salons require physical locations, and chances are, they always will. There will always be caterers, personal trainers and aestheticians who make house calls, but the vast majority of Americans will acquire these services at physical places of business.