16C —April 23 - May 20, 2021 — Spring Preview — M id A tlantic Real Estate Journal
www.marej.com
N ew J ersey R etail
By David Townes, Cushman & Wakefield Retail’s Rebound: Post-Pandemic Outlook
B
to normal life. Middle-and- high-income households have built up strong wealth and savings during the pandemic, reporting a record high of $116.5 trillion in Q3 2020, a result of soaring stocks, home values and income. This mix of factors has set the stage for a strong consumer spending surge that we’re starting to see slowly unfold. A Shift to the Suburbs Before the pandemic, the suburbs faced challenges competing with the urban lifestyle. But, as millenni- als started entering their
30s, a shift from urban cores toward the suburbs started to emerge. This trend only accelerated throughout the pandemic; as a result, there has been a significant net-out migration in large northern cities throughout the U.S. This has contributed to more suburban opportunities, es- pecially in locations that boast easy access to trans- portation hubs, retail and restaurant amenities, such as the Central and Northern New Jersey suburbs, which are among the top regions in the country that have
witnessed healthy migration activity over the last year. Retailers Making Moves Don’ t let the negative headlines fool you: retail is rebounding. Over the past year, my team has closed 50 retail transactions across a variety of industries for a myriad of local, regional and national players, total- ing more than 250,000 s/f of space across New Jersey. In recent months, we’ve seen several notable transactions with retail tenants making significant commitments in the state. Quick service con- cepts such as Krispy Kreme and Popeyes both recently committed to space in New Jersey at 4,000 s/f and 3,800 s/f respectively, while French café and bakery Maman secured 2,000 s/f for its first location in the state. Another retailer that has been flour - ishing despite the pandemic is Phenix Salon Suites, a business ownership concept that offers turnkey solutions for professional hairstylists. The salon recently secured 15,000 s/f in Edgewater, marking its 11th location in New Jersey and largest across the state. While many restaurants have struggled over the last year, those that were able to quickly pivot their concepts to takeout and delivery have fared well. We’re also seeing increased demand for second-genera- tion restaurants in desirable suburban locations. While the retail sector’s outlook remains fluid, there are several indicators pointing to a positive rebound. Retail sales are forecast to grow at an average annual rate of 3.7% per year over the next five years, almost identical to the five years that preceded the pandemic. Most importantly, it is anticipated that post- pandemic consumers will be spending more than ever at brick-and-mortar stores. The return to retail has ar- rived and the timing couldn’t be better. Now it’s time to fo - cus on the sector’s good news and ensure these wonderful businesses continue to thrive. David Townes is a senior director in retail services at Cushman & Wakefield where he is responsible for landlord and tenant representation through- out New Jersey. MAREJ
rick-and-mortar re- tail has faced a mul- titude of challenges
stimulus checks, consumer confidence has been steadily growing and specific retailer types have been doubling down on their investments. The suburbs, too, are a key player in what’s driving this retail renaissance. Consumer Confidence is Key Without consumer confi- dence, retailers have little to work with – it’s a key indi- cator of the sector’s growth trajectory. And with the strongest income growth ever recorded – little of which has been spent – consumers are poised to let loose and return
throughout the pandem- ic. Despite t he s e em- ingly end- less curing of negative head l ines , the sec tor h a s b e e n
David Townes
quietly building its comeback in the most unexpected ways. While some of the credit lies with the successful roll- out of vaccines coupled with
WHAT’S NEXT IN NEWJERSEY RETAIL
Fueled by ideas, expertise, and passion across borders and beyond service lines, our Cushman & Wakefield Retail professionals create dynamic solutions to prepare investors and occupiers for what’s next. Our understanding of a shifting retail landscape coupled with local market perspectives provide insight into current conditions, trends and strategies. From physical and experiential, to supply chain and distribution, we keep the pulse on the evolving consumer experience to oer unparalleled expertise. Let us harness the power of real estate on your behalf.
Find out how the power of real estate is unleashed on your behalf at cushmanwakefield.com
David Townes 201 508 5268 david.townes@cushwake.com
Alana Friedman 201 508 5258 alana.friedman@cushwake.com
cushwakeretail.com
Made with FlippingBook Ebook Creator