12A — April 23 - May 20, 2021 — Retail Development Reimagined — M id A tlantic Real Estate Journal
www.marej.com
R etail D evelopment R eimagined
Levin Management’s Annual Outlook Survey offers a glimpse of brick-and-mortar resilience A silver lining for retail? Poll reflects optimism, agility and a focus on customer convenience
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cally, to address COVID-19,” Harding said. “The responses here make sense. While we all hope – and even anticipate – that 2021 will bring a return to normalcy, we are not there quite yet. As more people are vaccinated, restrictions con - tinue to lift and the economy regains solid footing, the retail industry will enjoy renewed velocity.” LMC survey participants reported their adoption of a variety of pandemic-fueled adaptations in 2020. Near- ly two thirds (61.4%) added fulfillment options such as online ordering for store or curbside pick-up, shipping or delivery service. Nearly one third (32.9%) incorporated shopping reservations/ap - pointment times, and 30.0% created a designated area for click-and-collect orders (in-store or curbside). Other modifications included open- air setups for dining, classes or other activities; limiting numbers of shoppers in-store; and stepped-up cleaning pro - tocols, health screenings and other safety measures. Notably, more than half (52.7%) said they will main - tain some or all of their pan- demic-fueled adaptations as permanent operational best practices. Flexible fulfill - ment options topped the list of changes that will carry through to the future – an
LMC takeaway reflected in other research, including De - loitte’s 2021 retail industry analysis. “We witnessed first-hand how retailers worked to reopen or stay open during the pan - demic,” Harding said. “They exercised creativity, and fo - cused on providing safety and convenience for their custom- ers. That last point – customer convenience – has true staying power. Even before COVID-19, fulfillment agility had taken its place in the spotlight. For several years, major retailers have been adopt- ing omnichannel fulfillment, with click-and-collect driving customers to brick-and-mortar stores. Now that practice has become nearly universal – across categories and among retailers large, small and in- between.” To that end, Harding noted that the retailers best posi- tioned to succeed moving for - ward will remain focused on catering to the habits, wants and needs of consumers. And they will continue to embrace today’s digital environment. Beyond enabling new avenues for fulfilment, technology has become a powerful marketing tool for LMC survey respon- dents. When asked to compare their amount of 2021 planned technology-centered market - ing – such as email, text mes - saging, SEO optimization,
Google AdWords, banner ads or other Internet advertising, and social media/social mar - keting – to last year, 86.1% indicated they will spend as much or more. “This commitment reflects the vital role of digital plat - forms in reaching consumers,” Harding said. “Our annual Mid-year Retail Sentiment Survey – which we suspended in 2020 but look forward to conducting again this June – typically focuses on technology issues, and this is one of our repeat questions. Ultimately, our data shows sustained trending in brick-and-mortar retailers leveraging tech plat - forms to differentiate them- selves and compete in a digital world.” LMC’s surveys, conducted three times annually, also include an October/November poll gauging expectations and plans for the holiday season. For nearly seven decades, the company has served as a trust- ed single-source commercial real estate services provider for institutional and private owners. LMC today maintains a diversified, retail-focused portfolio in the Northeast and Mid-Atlantic states. The firm’s capabilities continue to evolve with new technologies, efficien - cies and sustainability-focused initiatives to serve a new gen - eration of properties, investors and tenants. MAREJ & Foster Real Estate, Pivot Physical Therapy, and Hair Cuttery. However, the zoning change to allow for mixed uses will serve to alter the trajec - tory of this dynamic center for the foreseeable future. The Ranson-Charles Town market is poised for growth as evidenced by Mart in Homes’ 1,100-unit Presi - dential Point now under construction. Moreover, the shopping center is located within an Opportunity Zone and can support up to 50,000 s/f of future development in - cluding other complimentary uses such as multi-family, office, medical or hospitality. The Potomac Marketplace is prominently located along Rte. 9 (17,600 VPD) with 2,250 feet of frontage and is the dominant retail presence in the trade area. MAREJ
performance in 2021. This compares to a trailing nine-year average of 68.1% expressing optimism for the coming year. “We view the percentage of our tenants that held their own or even grew their sales last year – during an incredibly difficult period – as significant,” said LMC’s Matthew K. Hard - ing, chief executive officer. “The positivity expressed for the near term is also encouraging. It mirrors the steady optimism we have seen through the his - tory of our survey, which spans a variety of economic climates and transformational changes for retail.” This outlook is sup - ported by forecasts from organi - zations like the National Retail Federation, which anticipates retail sales growth between 6.5% and 8.2% this year. LMC survey participants were asked what top three drivers they feel will have the biggest impact on their busi - ness in 2021. Of the presented options, the most popular in - cluded COVID-19 vaccine roll - outs (selected by 68.8%), the further lifting of COVID-19 related restrictions (selected by 63.9%), the economy/con - sumer confidence (selected by 54.9%), and shifting consumer expectations and shopping patterns (selected by 36.1%). “We have been asking a simi - lar question for the last few years, although we expanded the list of drivers for 2021, logi -
O R T H P L A I N - FIELD, NJ — In February 2020, Levin
M a n a g e - ment Co r - p o r a t i o n ’ s (LMC’s) an - nua l Ou t - look Survey of retailers wi t h i n i t s 1 1 0 - p r o p - erty, 15.5
Matthew Harding
million s/f leased andmanaged portfolio drew some of the most positive sentiment in the poll’s decade-long history. Just one month later the global pandemic took hold in the United States – changing the course of the industry swiftly and profoundly. LMC, once again, recently surveyed its tenants. The results reflect the challenges brick-and-mortar space users – particularly the hard-hit re- tail, restaurant and entertain - ment categories – have faced over the past 12 months. Yet it also reveals the resilience of a sector that is no stranger to change. Regarding 2020 performance, it comes as no surprise that sales were down last year for a majority of LMC survey respon- dents. However, more than one third (34.3%) reported their an - nual sales met or exceeded 2019 levels. Further, more than two thirds (66.9%) of respondents expressed optimism for store RANSON, WV — Heiden- berg Properties Group and Strategic Real Estate Part- ners , owners of the Potomac Marketplace in Ranson, WV announced a zoning change for the property. On March 16, the City of Ranson Plan - ning Commission rezoned the Potomac Marketplace from Highway Commercial (HC) to T-5 Urban Center and T-5L Urban Center Limited. The Potomac Marketplace has served as the dominant re- tail center in Ranson since its opening in 2006, but this zon - ing change will allow for the creation of a dynamic, mixed- use and walkable neighbor - hood. The T5 district consists of higher density buildings that would accommodate of - fices and apartments, as well as the existing retail. Accord - ing to Heidenberg Properties’
Heidenberg Properties Group announces zoning change for the Potomac Marketplace in Ranson, WV facilitating mixed uses at the property
low us to create a destination for Ranson residents to shop, dine, live and work in one loca - tion, consistent with the City’s long-term vision.” The Potomac Marketplace has been a vital retail cog for the City of Ranson, WV due to the presence of home improve- ment market leader Home The Potomac Marketplace
Depot, national fashion retail - ers including Kohl’s and Mar - shalls, regional grocer Weis Markets, Petco, and a variety of leading fast-casual restau - rants such as Panera Bread, Glory Days Grill and Dunkin. Additionally, the shopping center is home to service and wellness tenants such as Long
CEO Robert Heidenberg , “This zoning change is the next step in our value creation process for the Potomac Mar- ketplace. We were excited to bring a best-in-class retailer such as Marshalls to the cen- ter in 2019, but we believe that the ability to add mixed uses at the property will al -
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