4C — August 28 - September 10, 2015 — ICSC PA/NJ/DE Conference & Deal Making — Shopping Centers — M id A tlantic
Real Estate Journal www.marejournal.com
S hopping C enters
By Thomas S. Onder, Esq. and Jerry A. Nelson, Esq., Stark & Stark Tailoring Your Property to Capturing the Millennial “Boom”
T he average age of a Millennial is 24, and their generation is now
reported “Millennials...would rather spend their hard-won cash on out-of-town vacations, meals with friends, gym m e m b e r - ships and , o f c o u r s e their smart- phones...,” as r e f e r enc ed b y S t o r e s Suffer from a Shift of Be- havior in Buyers, published on August 13, 2015. This generation also dis- tinguishes itself from its pre- Jerry Nelson
decessors as in other ways, including being more 2 : •Internet Savvy: Millennials
for a retailer or product while at a shopping center, paying their rent on-line or electroni-
or ethnicity other than non- Hispanic white. This diversity also corresponds to them being more apt to choosing to live in an urban environment, like a city core or suburban town cen- ter. High density “Live/Work/ Play” developments show that many Millennials are willing to sacrifice large space to be in a good location with transpor- tation options, a grocery store, retail stores, medical facilities, restaurants and other enter- tainment options. •Highly Educated: More than 60% of Millennials have attended college. This increase in college education corre- sponds to an increase in col- lege debt, pushing Millennials into the rental market, as opposed to purchasing a home for the near future. Besides the experience, this educated workforce also looks for value when spending their dollars. As such, owners that can focus on catering to their wants and needs at a value-added cost can really achieve success with this group. The choices Millennials make will shape the economy for years to come. This genera- tion’s attitudes for purchasing is quite different than prior generations and presents a real opportunity. For property owners of shopping centers, multi-family, commercial and/ or mixed use buildings, the key to growth is to understand who the Millennials are, what motivates their purchases, how to tailor properties and how to attract and meet the generation’s expectations and needs. Property owners can also benefit by reviewing and improving leases, contracts and other documents and procedures with experienced counsel to maximize this op- portunity. 1 The Pew Research Center, Janu- ary 16, 2015. 2 The White House, 15 Economic Facts About Millennials, The Council of Economic Advisors, October 2014. Thomas S. Onder is a shareholder and member of the Commercial, Retail and Industrial Real Estate, Litigation and Bankruptcy & Creditors’ Rights Groups of Stark & Stark. Jerry A. Nelson is a share- holder andmember of Stark & Stark’s Business & Cor- porate, Commercial, Retail and Industrial Real Estate and Real Estate, Zoning & Land Use Groups. n
the largest in the United States, even surpassing t h e B a b y Boomer gen- eration. 1 Be- sides the ob- vious differ- ence in age, Millennials
“For property owners of shopping centers, multi-family, commercial and/or mixed use buildings, the key to growth is to understand who the Millennials are, what motivates their purchases, how to tailor properties and how to attract and meet the generation’s expectations and needs.”
are the first generation to have Internet access during their formative years. This experi- ence makes them more likely to use technology in their daily lives, whether posting a review about a restaurant they just patronized, searching online
cally signing documents. Their communication choices can lead to new and innovative ways for property owners and retailers to connect to this larg- est generation. •Diverse: More than 40% of Millennials identify with a race
Thomas Onder
also have very different pur- chasing behavior than other generations. For instance, The New York Times recently
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