![]() ![]() There's a trend toward open-air shopping centers over non-prime malls, reflecting retailers' adaptation to shifting consumer preferences and changing shopping habits. This resilience is evident in record-low vacancy rates, driven by limited supply and evolving demand. However, the development of new retail venues lags due to high expenses, and many underperforming malls are transitioning to mixed-use spaces, reducing retail availability.Īlso, despite a complex economic environment, the retail property sector remains robust. Retailers are further capitalizing on their physical locations as showrooms and hubs for pickups or exchanges, countering the escalating costs of last-mile deliveries. While reduced footfall, store closures and retailer insolvencies once troubled the industry, it's now seeing a resurgence due to renewed consumer enthusiasm for in-store shopping. ![]() Factors like the geographical position of properties and the demographics of the surrounding trade areas critically determine demand. Retail REITs are significantly influenced by the broader economic health, employment landscape and consumer spending patterns. Also, net lease REITs enjoy the ownership of freestanding properties, wherein both rent and the majority of operating expenses for the properties are borne by tenants. These include regional malls, outlet centers, grocery-anchored shopping venues and power centers, including big-box retailers. The Zacks REIT and Equity Trust - Retail industry embodies a group of REITs that own, develop, manage and lease diverse retail spaces. However, concerns arise with rising retailer bankruptcies, high expenses and potential financial stress, leading to cautious real estate decisions and a possible increase in vacancy rates. These have poised Regency Centers Corp., Kite Realty Group Trust and Essential Properties Realty Trust well for growth. Omnichannel strategies, diversification and adaptation have reduced the threat of e-commerce on physical stores, with retailers leveraging spaces for online orders and customer engagement. Record-low vacancy rates and a trend toward open-air shopping centers reflect retailers' adaptation to shifting preferences. The Zacks REIT and Equity Trust - Retail industry constituents are poised to benefit from the renewed in-store shopping enthusiasm post-pandemic, sustained demand, limited supply, enhanced leasing and pricing capabilities for retail REITs and retailers utilizing physical locations for showrooms and pickups. REG, Kite Realty Group Trust KRG and Essential Properties Realty Trust EPRT. Chicago, IL – J– Today, Zacks Equity Research discusses Regency Centers Corp. ![]()
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