Experience-Shopping Trends Still Driving Retail
http://www.allenmatkins.com/ucla
For the past several years, retail has been undergoing a profound change from distribution conduits to experience-shopping venues. Online purchases shift retail demand from brick and mortar distribution to warehouse distribution systems, and with the continued strength in industrial space, one would expect developers to have a negative sentiment towards retail. Yet, the Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey only observes strong pessimism in Los Angeles and Orange County. The answer for the other regions may lie in recent increases in spending power in the Bay Area and San Diego, the increases in home construction, and a general move towards experience-based retail.
For the past several years, retail has been undergoing a profound change from distribution conduits to experience-shopping venues. Online purchases shift retail demand from brick and mortar distribution to warehouse distribution systems, and with the continued strength in industrial space, one would expect developers to have a negative sentiment towards retail. Yet, the Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey only observes strong pessimism in Los Angeles and Orange County. The answer for the other regions may lie in recent increases in spending power in the Bay Area and San Diego, the increases in home construction, and a general move towards experience-based retail.
