{"id":1004607323,"date":"2022-10-28T01:48:51","date_gmt":"2022-10-28T09:48:51","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004607323"},"modified":"2022-12-09T02:11:18","modified_gmt":"2022-12-09T10:11:18","slug":"the-new-focus-in-djms-retail-investment-strategy","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/the-new-focus-in-djms-retail-investment-strategy\/","title":{"rendered":"How DJM Retooled Its Retail Investment Strategy"},"content":{"rendered":"
\"Rob<\/a>

Rob Miller, Vice President of Acquisitions, DJM. Image courtesy of DJM<\/p><\/div>\n

The retail market has been on a rollercoaster in the past few years\u2014and the ride is not over. Soon after pandemic-induced restrictions evaporated and people began returning to stores and shopping malls, the industry is once again facing another setback: inflation.<\/p>\n

But despite new headwinds, JLL <\/b>research found that most consumers intend to venture out beyond their laptops to do holiday shopping<\/a> this year, which would be a breath of fresh air for the retail sector. Daily need shopping centers are particularly well positioned to perform well going forward. <\/p>\n

Commercial real estate developer, investor and manager DJM<\/strong> altered its acquisition strategy following the pandemic. Known for high-profile redevelopment projects, DJM added a more recession-proof asset type to its portfolio: grocery-anchored centers. In the past couple of years, the company purchased six properties of the kind, all located in California. Vice president of Acquisitions Rob Miller shared details about the company\u2019s pivot in investment strategy, current goals and predictions for the sector.<\/p>\n

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READ ALSO: <\/strong>Retail Fundamentals Stay Positive<\/a><\/p>\n

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What are the benefits of investing in daily needs centers amid current market conditions?<\/strong><\/p>\n

Miller:<\/strong> To date, open-air daily needs shopping centers\u2014and especially those anchored by grocery stores\u2014have outperformed other types of retail, like experiential retail, power centers and certainly malls<\/a>. Foot traffic and store sales numbers bear this out.<\/p>\n

If we look at a typical retail shopping experience during the pandemic, it was very much necessity-based at the outset, before ultimately gravitating toward services and in-person experiences like dining or drinking.<\/p>\n

DJM\u2019s portfolio and our recent acquisitions benefited from both phases of the pandemic. We continue to add open, common-area space to our centers and look to improve merchandising by adding grocers, services, and compelling food and beverage experiences.<\/p>\n

In your opinion, did the pandemic generate retail trends that will have a lasting impact on the sector?<\/strong><\/p>\n

Miller:<\/strong> The pandemic had an enormous impact on consumers<\/a> and, as a result, on physical retail. It accelerated important trends in the industry such as the conversion to omnichannel and moving away from enclosed malls. The question going forward will be how sustainable or lasting some of these changes prove to be.<\/p>\n

We\u2019re already seeing delivery and to-go business drop back, which was expected as consumers seek live, in-person experiences. Another question going forward will be what happens in the space as consumers spend the household savings which were built up to historic levels during the pandemic. The “new” normal as we are seeing it is a more seamless experience between e-commerce and bricks-and-mortar, and a reinvigorated retail consumer seeking out in-person experience.<\/p>\n\n\n