Holiday Retail Sentiment Survey from Levin Management and 2020 CRE Outlook from Deloitte CRE News Hour 11/8/2019

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From the business desk at St Broadcast News this is the C.. Arena news hour. I'm Steve Lubeck. It's Friday November Eighth Twenty nineteen in this episode of the Sierra News Hour. We'll speak with Matt harding. Melissa seve right of Retail Tale shopping center firm Levin Management About Their preholiday survey of retail sentiment. And we'll have a conversation with Jim Berry. Leader of Deloitte's Loyd. US Real Estate Practice about the firm's twenty twenty commercial real estate outlook. We'll be back with the top news stories right after these messages Turn earn your podcasting. Passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position. Your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of PODCASTING DOT com. Oh today you can't wait for the media to cover your company Buzney. You have to be the media take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the Lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in Cherry Hill visit being the media dot Com for more information. Thanks for joining us on the C. R. E. News Hour. We just like to make note of a new option on the show page. For this episode you can click on the purple take the survey button right below the podcast player and share some information. That will help us get to know our audience better. We'd also appreciate your considering financial support for the Sierra News Hour by visiting our our patron link and becoming a show supporter you can also leave a tip in the tip jar by clicking the blue quid button right in the middle of the podcast episode page and if you're interested in becoming a sponsor of the Sierra News our right to me at Steve Add state broadcast news dot com. And we'll send you the rate card for advertising commercials officials. Now let's take a look at some of the stories that are moving. Sierra markets across the country October was a good month for jobs. The Bureau of Labor Statistics says total nonfarm in payroll employment rose by one hundred twenty eight thousand in October and the unemployment rate was little changed at three point six percent. Doug Duncan chief economist. At Fannie Mae has more perspective on the jobs report. The October jobs report came in relatively strong especially since it included significant temporary job Bob losses from the recently resolved. GM UAW strike as well as layoffs of temporary census workers nonfarm payrolls increased by one hundred hundred twenty eight thousand in October figure that included net losses of forty two thousand for motor vehicles and parts manufacturing. We expect act the motor vehicle sector to show a corresponding rebound in employment next month. In addition job gains for the prior two months where revised Edward by a total of ninety five thousand another positive for the labor market the average workweek held steady an average hourly earnings growth was unchanged unchanged at three percent year over year which should offset concerns of weakening personal income growth in the household survey. The unemployment rate ticked up one tempest month but remains at historically low levels in labor force participation increased as well indicating workers are continuing to return. Turn from the sidelines. Based on this report the Fed should be comfortable with its tone at the recent. FOMC meeting in which implied a more muted appetite for future future rate cuts Manhattan ranks among the greenest cities in the country according to the annual office green building adoption index and inaugural multifamily. Emily Green building adoption index by CBRE Maastrict University and the University of wealth ranking seventh and tenth respectively. According to the report Manhattan became greener over the past year with thirty five percent of its office. Space now green certified. That's up from thirty one. Point Seventy five percent in twenty twenty eighteen. Currently the market boasts two hundred sixty seven. Green certified office buildings out of an inventory. Totaling seven hundred eighty eight properties the twenty nineteen Green Building Adoption Index Found Green Certified Office space across America's third largest office markets has reached forty two point two percent. That's up from forty one point. Nine percent last year and marks a new high Chicago took the top spot in the green building. Adoption Index for the Third Straight Year with seventy ninety one percent of its space green certified. The multifamily green building adoption index. Found that while it's still in the early stages three point three percent of all multifamily type family apartment. Units in the top thirty markets have been green certified according to the Index Manhattan ranked tenth with three point five percent or about eleven thousand thousand of its multifamily apartment. Units Green certified along these lines. The American Institute of Architects is criticizing the decision by president trump to officially withdraw from the Paris climate accord. AAA President William Bates called the decision shortsighted and says the economic impact to the United States says a participant in the Paris agreement is a fraction of the toll will pay if we do not make climate action a top priority as a nation in September the AIX Diane expanded its efforts to drive climate action and issued a declaration called where we stand. Climate Action Rockefeller Group and joint venture partner. P. You see C. P. S. H. I.. International one of America's top ten largest. It solutions providers has purchased a four hundred thousand square. Arafat building in Rockefeller Group Logistic Center for fifty nine and a half million dollars. Shi will use the building primarily for it configuration the the building was developed specifically for an IT tentative features thirty six foot clear ceiling heights and eight thousand amp primary service connection including a full building building. Backup generator a chiller. Plant for ten in data software equipment a steel platform mezzanine for specialized mechanical electrical and plumbing equipment to support. Shi's data operation and increased roof load to accommodate a solar rooftop application. The buildings located at four hundred Ridge Road in piscataway getaway New Jersey. Jol's hotels and hospitality practice says the firm advised on the sale of the Saint Regis New York on behalf of Marriott. International Qatar Investment Authority purchased the two hundred thirty eight key property for three hundred ten million dollars. It's subject to a long term management agreement. The Saint Regis. New York's located in Manhattan's Midtown East sub market overlooking Fifth Avenue. The property holds Forbes Five Star and AAA five diamond ratings amenities include the escort restaurant and King Cole Bar and nearly fourteen thousand square feet of meeting and Event Space Ashkenazy Acquisition Corp. edited Vernon Hills shopping center in in East Chester New York too it's diversified portfolio the acquisition was orchestrated by Cushman and Wakefield the New York based private real estate investment firm purchased. The five I building West Chester County asset at a cost exceeding one hundred twenty five million dollars from Vernon Hills shopping center. LLC The market leading mixed-use property totals more than three hundred eighty thousand square feet. It's just five miles from the Central Business District of White Plains and features a mix of retail medical and professional credit sentence. The properties notable retailers include starbucks New York Sports Club Barnes and Noble Gap American Eagle Brooks brothers and West Elm among others. It's medical presences expanding significantly because of high demand in the local market major tenants include Lawrence Hospital. And it's affiliated New York Presbyterian and Columbia NBA Medical Practices Mesa West capitals provided financing for the acquisition of a multifamily project Henderson Nevada and the construction of a Class A office tower in suburban Philadelphia. The separate loans total about one hundred seventeen point four million dollars a joint venture of an affiliate of American real estate partners and developer developer. Oliver Tyrone Pulver Corp has received a seventy six and a half million dollar loan from West Mesa for the construction of Seven Tower Bridge. That's the two hundred and sixty fifty thousand square foot class. A office building in Conshohocken a suburb of Philadelphia about ten miles north west of the city. Seven Tower bridges the last in a series of buildings buildings developed by OT PC and it's affiliates within the forty five Acre one point four million square foot master planned mixed use tower bridge development. It's it's the first new office project in Conshohocken. Since twenty two strategic funding alternatives a privately held commercial real estate firm announced the acquisition of Woodland Blend foles corporate center on Lake Drive East and route thirty eight in Cherry Hill New Jersey. Our hometown located on seventeen acres the three building. Complex combines combines for a total of about two hundred eighteen thousand square feet of class a office space the corporate park currently boasts in occupancy of ninety seven percent it's home to attendance at include. PNC Bank core. centric the law. Firm Ballard SPAHR I colonial Community Bank and MD bank affiliates of Endurance Real Estate Group Center Square Investment Management have signed a two hundred forty three thousand square foot lease with progressive converting at five ninety four Candu expressway sway and Hazleton Pennsylvania. The property was recently purchased from Quad Graphics and rebranded as five ninety four distribution center the lease increases the property's he's occupancy. To one hundred percent. An eighty six Acre infill development sites. Come online for sale in eastern Morris County New Jersey Cushman and Wakefield. Talking talking the property at eighty-five whip and he rode in whipping. That's part of one hundred ninety four acre former Alcatel Lucent site that's undergone a highly successful redevelopment and the rest of the campus today houses Bayer's North American headquarters and metlife investments global headquarters Cushman and Wakefield's New Jersey. Capital Markets Team is marketing marketing. The opportunity on behalf of Bayer which is selling. It's currently zoned for Professional Office Research Laboratories State license hospitals and nursing homes childcare childcare centers and more fair stead and meadow partners have acquired the chocolate factory lofts. A one hundred. Twenty five unit converted factory at two hundred seventy five Park Avenue in Brooklyn selling price was sixty seven and a quarter million dollars. The former Tutsi roll factory spans the entire southern facing side of Park Avenue. Can you and it's about a block from the Brooklyn Navy Yard and the new wegmans flagship. Location Terror Cap Management Privately held investment firm headquartered in Estero Florida is acquired centerpoint office center one and two in Denver Colorado for seventy seven and a half million dollars. The acquisition consists of two multi story office buildings things totaling three hundred. Seventy four thousand rentable square feet the properties in the heart of Denver on the intersection of I twenty five and Colorado Boulevard less than six miles from downtown Denver in the largest new office transaction in Bergen County New Jersey so far this year promotion in motion a manufacturer of fruit snacks fruit roles confections and other snack food products has signed one hundred and ten thousand nine hundred forty five square foot headquarters lease at two twenty five Bray Boulevard in Park Ridge. New Jersey. The Con- Group has acquired South Valley Ranch at two hundred ninety two unit apartment community in Henderson Nevada for fifty four and a half million dollars built in nineteen ninety-seven South Valley ranch is situated on seventeen. Point three seven acres Henderson's one of the fastest growing communities in America newmark Knight. Frank is announcing the firm successful completion of the sale of three property portfolio of office and retail in Chicago's Fulton Market district. They didn't disclose the buyer. The portfolio totals about seventy seven thousand square feet between three buildings. You're listening coming to the CR Newshour from state broadcast news. Dot Com real estate industry landscape is continuing to evolve at a rapid pace if CRA are- companies want to remain competitive as we head into twenty twenty. It'll be critical for them to focus not just on location location location but also on the tenant experience experience in one of the keys to focusing on the tenant. Experience is leveraging insights from data analytics and Emerging Technologies Deloitte and Touche has just just released its twenty twenty commercial real estate outlook and joining us to talk about that. Outlook is Jim Berry. He is the US real estate leader for Deloitte and Touche out of Dallas Texas. Jim Thanks for joining us. On the Theory Newshour stay. Thanks for having me today. So it's an interesting report and you've you've been doing this kind of report for several years. And there have been some changes in the perception of commercial real estate By institutional investors particularly particularly when it comes to the use of technology and analytics. Tell us a little bit about what. You're finding sure and stave This year for Twenty Twenty Deloitte Commercial Real Estate Outlook. We went ahead and took advantage of really where things are today and we actually polled seven hundred fifty global real estate owners ars operators investors and really tried to cover a couple of different things as you just mentioned. We were really looking for insights from that group on on how they were viewing Technology the enhancements that were occurring and how they were adapting to some of that which really drove us into the area of Tentative experience France in addition since we're going out to those seven hundred fifty Global owners operators real estate. We also just wanted to get their perception on on the economy and how they were seeing things over the next eighteen months. So maybe a COUPLA insights first off on technology and how we're seeing Real estate companies embrace that as I just mentioned when we looked at some underlying themes that came out is really this idea tenant. Experience really came through loud and clear and when we framed that up we really said that when you really looked at some of the underlying data and and how things are moving in evolving the old adage of location location location being the primary driver for real estate has really evolved into where now it's location experience appearance in analytics and a great example of that is that sixty four sixty four percent of those executives that we survey said they were GonNA continue to increase investment intended experienced technology But an interesting stat on that In contrast there's only forty six percent that believed there that's really part of their core core competency so many people get so what are the implications for property owners Who are looking for investment In terms of how they deploy technology technology yeah. There are several several opportunities that really exist out there and kind of continuing down that stream of the tenant experience. It's an really the end user experience you know. I've been in real estate now for about thirty five years and one of the great things. About real estate is there has always been the opportunity to interact with With the tenant and partner and team with them but what we're really experiencing today is through the use of technologies technologies through the Hal and and what Data gathering and use of. That really means there's really increased opportunities to do even more from a partnering with the tenant and ultimately the user and that really has become more and more critical and so when you look at it from the perspective of what our tenants value and they're really increasingly valuing that that opportunity the teen differently with the With the real estate owner and operator and and and the investors are really looking at it from the perspective of the wave of Use of real estate as that continues to evolve Alvin. Change that you know. They're looking for those Owners operators that they can invest and are really embracing technology. So you've got some examples in the report of some interesting approaches at people are taking. Can you talk about some of those examples apple some of those cases absolutely so let's start with With some things about that are already some examples that people are currently embracing using thing when you really break it down. You know. Current examples of where people are focusing right. Now a lot of it. I call it You know some of the basics so environmental final so lights heating Security has moved up quite a bit But beyond just the basics of building security. It's really once again. Providing twenty four seven seven top of security for the for the individual tenant end user of the space and then the other thing that's That's continuing changing to move up. The scale is interactive and the use of mobile APPS Internet of things to really drive more and more of the ten external durance so making the the real estate itself the a real element of of how the how the end users actually experiencing things another area is in is in artificial intelligence and it's it's interesting and that artificial intelligence is really moving up the evolved significantly over the last few years and has gone beyond machine learning to now that's deep. Learning natural language processing technologies really just continued to evolve. And it's no longer technologies. That are distant future. I mean these are technologies that exist. Today there are very usable by All companies and real estate companies in particular Sir however only one third of CRA Are Really companies are that we survey we're actually using artificial intelligence And those that were are still more or less using them in fairly traditional space so once again an opportunity area for people to to look for new ways to to expand on on our existing technology. Do you get a sense from them. what it is. That's holding them back from from implementing these technologies. Well I think there's there's a couple of things We mentioned last year and actually even the year before and our commercial and what's Commercial real estate outlooks that you know the time was really now That real estate while it's been a traditional lag lagging in in the adoption of certain technologies. You know it really needed to Move forward aggressively and we stayed at that point. A couple years ago we restated last year and we are clearly seeing some movement in those in those areas in a positive fashion and sustained investment technology. But it's really so in answer to your question. Part of just closing the gap you know. There was a gap that was created and the need to accelerate and some of those investments and really embrace it. There's also just a natural You know question of how do you allocate your capital in a very capital intensive in In business you know. It's really a question of water. We water what do you invest in is is in how important is today to invest in that And so there was some concern out there that you know. Technology wasn't fully there yet. That was it too early to jump in Dan. Some of those kinds of things so I think that concern has has really You know Somewhat alleviated over the over the last couple years so I'd say the combination of just a need to catch up and the second on You know wearing how to place your bets from a technology perspective so let's shift just a little bit from the technology part of the study to your overall outlook for twenty twenty I guess based on looking at the report year economists Sir Concerned about volatility around the world and particularly some concerns about the U. S. China relationship can talk a little bit about those results as we. We came out with the with our Deloitte Twenty twenty outlook. We really did want to also ask the question you know as with those seven hundred fifty global real estate state owners not riders. How are you feeling and what we came? You know the end result of that is we say mixed but moderate optimism still exist in and just throw out a couple statistics Going across all the sectors. And you know that that were included in the survey fifteen percent still remained very optimistic our next eighteen months and sixty one percent somewhat optimistic so still combined well over seventy percent And the very or somewhat optimistic however in comparing that to the prior year where in and the twenty nine Teen Deloitte Outlook we actually were on the other side. The table and exclusively surveyed five hundred global investors and at that time ninety six percent indicated that of those real estate investors that they would be at or increase their label level investment. So moderating optimism to watch watson. Play there There's clearly Concerns over you know some of the global influences you know Not At sits trade or whether or not it's Brexit or just Just the fact that there's still a lot of discussion while it's just been a really long sokoll and what does that really gonNA mean but the fundamentals across Real estate commercial real estate in general steel remained strong. And that's the contrast and that when you look at leasing activity when you look at The overall financial picture They you know it still looks very optimistic. Overall I will say that the feelings And the most concerns that people have right now Interest Rates Geographic market risk and tenant concentration remained the top three items their most focused on from a risk perspective. One of the statistics. I found really interesting is among the respondents geographically the g the respondents in Hong Kong seemed to be this have the strongest optimism for the markets whereas In the very optimistic category the United States was way down about about twenty percent Hong Kong at forty percent both still positive but You know given the what we see on TV. And then the news about Civil unrest unrest and protests in Hong Kong. How do you account for the fact that they are still optimistic? There that they're not concerned about the civil unrest. Yeah Yeah Stephen. And you're right when you break it. Down into major geographic areas. It was Asia will lead from optimism scale followed by North America and Dan Europe And I do want to to make sure it's clear. Though that when we did the survey it was in June. We know twenty nine so there was obviously some things happened since then in Hong Kong that could have impacted that but still overall overall when you still look at the underlying things even with that that You know with the unrest and concerns that are happening globally in. They're still you know. Overall when you look at those Major Geographic Areas Asia North America Europe. You know that That optimism seems to be still generally holding talk about the challenges that people have with collecting data data analyzing data in. We're does that fit into what they're spending their money on and where they're putting their attention. This is really an area. That's that's really leave off for commercial real estate companies. You know the reality is there's enormous amounts of data that are available. And when you now when you think about The increase use of other technologies. We're not you know the technology's taught into the Internet thing mobile outs all that. That goes in through the smart buildings and some of those kinds of things once again. A lot of data and opportunity for data both structured in unstructured data for most real estate companies is still very early stage however and there's a lot of questions that companies are really trying to deal with Who owns the data? I mean there's still foundational question of who really who really owns the data. Is it the real. Estate Company is the tenant And how's is that really gonNA play out it's also unclear on You know some of the regulatory landscape you know it'd be an example that being in the EU view with the general data protection regulations. That have come out and how that's going to weave in and play but but pushing through all of that the the reality is that data will continue to be a great great opportunity For real estate companies while the have to work through governance in structure and process and how best to handle that enabling so debased enabled capture management and usability of that there's really really An enormous opportunity the other thing. That's an interesting contrast You know when you when you grapple with some of the risk against let's you know time back to the end user. The reality is tying into some of that. Data's really some of the things that can best drive that end user experience experience and so I think the question now is not when or how to use that are are that. Data's going to be a usable source source. But really how best to use that. And how to make sure you're setting up the governance and control structures so that you can you know we've your way through some of the some of the risks are are involved with it. So what are some of the things that Your study recommends that people think about doing to digitize and personalized the tenant experience -periences smart buildings are going to play a role in that. Yeah no doubt about it so You know from a smart building perspective. You know. I think that's a that's a great example of where things are going in heading and and and really were. The expectations are Back to that point we made about. It's no longer location location location. It's location experienced analytics and and that experience as really having an equal weight to the location look locations locations always going to be important but if you have a building that really can Have you know offer the not just the omitted these been on an overall experience a usability adaptability to anybody. Who's WHO's actually you know the end user experience in that particular real estate where nuts retail or office or multifamily even industrial. I mean that's really becoming more important when you look at smart buildings That's really interesting to go along to scale to say we n is the tip. What is the tipping point from? It's no longer going to be a nice to have or even a a An existing feature of that. You're moving into but rather it's an expectation and once again when you break it down geographically You See Across the world that really the The Netherlands in Singapore and some of those areas are really saying that within the next two years that well over fifty percent are gonna be required to do that an interesting contrast to that as the US respondents all believe that that need to occur as well and being in the upper You know high percentages manages well over seventy percent but within five years. So it'll be an interesting question on how to take existing being buildings And really trance begin to to continue to transform those and build. What is becoming an ever changing expectation of end user? Well we'll keep an eye on it and we thank you for taking the time and we'll check back with you when you do the next survey Steve thanks for including me on the Sierra Newshour Jim Berry is the. US real estate leader for Deloitte and Touche. He's headquartered in Dallas Texas and we'll put a link in the show notes to the full survey on the delayed website site We'll be back in a minute Shalom along. This is Rabbi Richard Address. Join us for our podcast. Series from Jewish sacred aging entitled seekers of meeting will explore some of the issues in events that impact impact ourselves our families in Jewish world at large in light of the current revolution in Asia. The secrets of meaning podcast airs every Friday morning at eight. AM AT JEWISH JEWISH SACRED AGING DOT COM. You can't wait for the media to cover your company. You have to be the media take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the Luebeck that can media companies handle the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully equipped studio in Cherry Hill. Visit being the media Dot Com for more information with twenty-six shopping days as between Thanksgiving and Christmas the shortest possible window the twenty nineteen holiday season is arriving early. The North plainfield based commercial real estate services firm Levin Management Corporation is once again surveying. It's retail tenants. It's the eighth annual preholiday retail sentiment survey and the results show some strong optimism for the sales period between now and Christmas. In fact twenty seven point seven percent of these surveys respondents think their peak seasonal sales will come before Thanksgiving and twenty eight and a half percent expect their peak sales during black Friday and Thanksgiving weekend. The statistics are mirrored industry-wide. Ed Major retailers are launching their holiday sales promotions even earlier than usual and we spoke again with Levin Management Corporation's Chief Executive Officer Matthew Harding and Melissa Right Vice President of marketing to get a sense of what the results tell us about the retail environment for the holiday shopping shopping season Madden Melissa. Thanks for coming back to the theory. News hour to talk about the holiday season retail indications are that things. They're gonNA be good Tell us a little bit about what you're finding yes. We've we've just recently completed our survey of retailers in our over one hundred property pretty portfolio and things are very positive We've really cut record. Highs in terms of expectations that are retailers. I have for the coming holiday season. and that's especially impressive because of really a a five-year run year of similar numbers Similar feelings where each each year is going to be better than the last and really nearly An all time all time record of our respondents indicated that they are are going to have a expect to have a better season this year than last nearly eighty eight percent up respondents anticipate that sales will meet or exceed. Last year's levels and last year was a pretty good year as well. People were pretty confident and sales were good. It was is it was and and over the last four or five years. We we've seen that consistently so I I think General Consumer Confidence has has has remained strong Employment levels have remained strong and then also when we ask retailers. How they've done so far? This year. they they were all positive as well. So they're they're basing it. I think upon expectations but also on on their track record for the first part of this year which which is seen strong sales and strong Levels of traffic in stores of customer traffic in the stores. So how does that play into into the conventional wisdom which is not always very wise That retail is challenged because of the rise of e ECOMMERCE and. What does that tell us about? What's really going on in retail When we look at Places like traditional shopping malls which are still in some cases seeing some challenges Getting retailers least up and getting the spaces occupied. I'll I'll speak first and and maybe would be Melissa can can add to that as well. a couple of things that one important thing that another trend that we've seen over the last number of years years is that the holiday shopping season has broadened. Its not black Friday to Christmas anymore. you start art seeing black Friday. Promotions and sales starting at the end of October and a a strong number of our our retailers expect their peak sales to come early early in the season Nearly thirty percent twenty twenty percent of our respondents expect their peak seasonal sales to occur prior to Thanksgiving and Twenty eight twenty. Nine percent really anticipate peak sales during the black Friday. thanksgiving weekend. So really they've expanded expanded The season and frontloaded it. And that's especially important this year where there are only twenty six shopping days between Christmas and Thanksgiving being the shortest possible window. So they've they've mitigated their risk in a sense by by broadening the holiday shopping season and that's been a consistent trend that we we've seen over the last number of years as well and then they're doing all kinds of things in the stores in in different ways to use technology and so forth to reach out to tenants uh-huh Melissa can probably out a couple of points on that calm. The brick and mortar retailers continued to look at different ways. to differentiate themselves from the e commerce and and the other physical store cupboard competitors A lot of that is You know creating convenience Slough at checkout process A well trained and friendly sales people A lot of our increase seen Sales people we see that forty percent are at for the full holiday period nearly forty percent of our participants that are participants. He's been stat. How do you say that? Sorry that participate in our survey nearly forty percent are adding adding seasonal staff And we've seen that with some of our big retailers like target who invested fifty million into their holiday payroll for more employees than floor A lot of retailers are doing in store experiences In store events to create a more pleasant shopping experience which an in store experience what what would be an example of then maybe showing them how to set their table for Christmas. Or you're on different ways to entertain their guests different products that are new to the market and how to use them. Are you getting a sense that the bricks bricks and mortar retailers are getting more comfortable integrating technology accepting the fact that people are going to walk around the store using a cell phone on a smart phone to compare prices or compare products are they. Are they doing more to accommodate that. Oh yes you have to. Have you have to be able to a combination the mobile devices because people are are looking at their founding comparing price in before they check out. Are there any other unusual or new new technology approaches. That people are using that you've heard about I mean a lot of it's the same. You know social media and text messaging A lot of our participants have tried new first time offerings. This year. Nearly thirty percent reported they will they are or will be the first using first-time offerings such as entertainment or increase prior variety of products and services and in store pickup up in return for online purchases. Last one's a a big one to showing how bricks and mortar her and ECOMMERCE and online presence of retailer really Have come together to work together to be as convenient genus possible for the customer whether they WanNa shop online strictly shop in the store or a combination of both and and we're we're seeing that across different types of retailers you know grocery to regular retailers and so forth and then seeing that so much in the grocery and but but department store Electronics like best buy and so forth getting incidental sales when the customer comes in to pick up an item and that customer can have that item within a couple of hours Order online know that it's there in the store go pick it up So you know retailers from seeing ECOMMERCE immerse as a threat or technology If if really the successful ones who have really merged that into their platform To reach their customer and serve their customers and then also using technology to reach out to their customers to get them into the stores through some of the things. That Melissa was talking about Pushing out coupons Pushing out ADS and so forth to their existing customers or potential customers. You've been doing doing the survey since twenty twelve Aside from the fact that the season has seemed to have gotten longer. Are there any other changes in the way people approach of the holiday retailing season. That you find are different from when you first started The first one is the the big one and then they use of technology. I think that we've seen a more of our respondent say that they're using technology and why one way or another and then Also with a little bit of a lag in in timing starting to use it but then also really seeing seeing results results in the stores so I I would say that that. That's an important trend that we've seen over time. You've been leasing space to retailers for a very very long time What kinds of things are retailers? Saying to you about Their leasing strategies. What are the things that you as a property owner or representative property owners have to Accommodate in terms of the requests. You get from people who are looking to Lee space in one of your centers. We are really trying to help. Our retailers be as successful as as possible obviously in in our properties and and more so seeing that as a partnership between a property owner and a retailer so a number of things We are modifying Parking areas to help grocery stores put pick up or department stores put Pick up spots convenient pick up spots for customers who have ordered online and WANNA stop and pick up items or have have some from the store. Bring it out we. They are renovating Shopping Centers to improve the experience for customers We are also adding Modifying our lighting systems to led to help Push down Combine area costs lost. We are also in in certain circumstances investing in in in helping a retailers with technology by established Abbas establishing websites for properties where retailers can come in and and post ads that then can be Those ads it's GonNa be pushed out to people in in the neighborhoods around the property set to know that the retailers there and to know what kind of sales or promotions are going going on at the shopping center so a whole host of different things That we're doing to try to help retailers be successful in our properties and also set our properties a apart from the competition so to speak any other a tips for people about What to look for in the retail environment in the holiday season I I would. I would say that you know what a number of different organizations are predicting four and a half five percent increase in sales this year. I have seen some notes Saying that it's a good idea to get out there and shop early. Because the PR- the product dried up. That you want may not be there at the end of the season so Get out there and chop early. I would say shop early and often correct matt harding and Melissa. You've right thanks very much for joining us on the news hour

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