{"id":1004714086,"date":"2024-05-20T03:10:00","date_gmt":"2024-05-20T11:10:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004714086"},"modified":"2024-06-20T04:22:51","modified_gmt":"2024-06-20T12:22:51","slug":"street-retail-surges-toward-full-recovery","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/","title":{"rendered":"Street Retail Surges Toward Full Recovery"},"content":{"rendered":"\n

Despite the pandemic\u2019s serious disruption of prime retail districts across the U.S., not only has a strong recovery of street retail been underway for a few years now, but it\u2019s on pace to fully recover by the third quarter and even to surpass pre-pandemic levels by the end of 2025.<\/p>\n\n\n\n

That\u2019s the verdict of a new report from CBRE, aptly titled Reports of Street Retail\u2019s Demise Are Greatly Exaggerated<\/a>.<\/p>\n\n\n\n

By the fourth quarter of 2023, the report states, foot traffic in 10 prime trade areas tracked by placer.ai had reached 81 percent of 2019\u2019s levels, demonstrating a significant recovery.<\/p>\n\n\n\n

\"High-Street
High-Street Foot Traffic by Month. Chart courtesy of CBRE Research, Q4 2023<\/em><\/figcaption><\/figure>\n\n\n\n

One of the reasons for current improvements and for optimism about the future, at least for high-income metros, is a steady return of foreign tourism to the U.S. As of February, tourism from Europe had reached 92 percent of 2019\/pre-pandemic levels, and tourism from Asia had reached 72 percent.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO<\/strong>: Retail\u2019s New Logistics Logic<\/a><\/p>\n\n\n\n

\n\n\n\n

Though demand for prime retail space in high-street districts is strong, it\u2019s often selective. In Chicago, for example, retailers that can\u2019t find space in the Gold Coast\/Oak Street submarket often will decline space elsewhere. CBRE notes that anecdotally, some tenant\/landlord negotiations are now beginning three to four years ahead of lease expirations.<\/p>\n\n\n\n

Little wonder, then, that after substantial decreases in 2020 and 2021, rents for prime retail space have increased by roughly 9 percent in the Americas, versus only about half that much elsewhere.<\/p>\n\n\n\n

\"U.S.
U.S. Inbound Overseas Travel by Region. Chart courtesy of CBRE Hotels Research, National Travel & Tourism Office<\/em><\/figcaption><\/figure>\n\n\n\n

In response to all this, there has been an increased interest in alternative street-retail districts, CBRE notes. \u201cRetailers that can\u2019t find space in the ideal location may opt to establish multiple locations in alternative street-retail districts with lower rents and fewer build-out restrictions and hurdles to secure space.\u201d<\/p>\n\n\n\n

Examples include retailers having stores on both Rodeo Drive and Melrose Avenue in Los Angeles, and on Madison\/Fifth Avenue and in Williamsburg in New York City.<\/p>\n\n\n\n

Co-evolution solution<\/h2>\n\n\n\n

All of this is happening as retailers have gained a better understanding of the current omnichannel environment, with physical stores and e-commerce supporting, not undermining, each other.  <\/p>\n\n\n\n

Citing Forrester, the report notes that in-store retail sales accounted for 78 percent of sales growth in 2022, a major jump from 46 percent in 2019.<\/p>\n\n\n\n

Further, the International Council of Shopping Centers has estimated that opening a store can raise a retailer\u2019s digital sales by almost 7 percent, while closing a store can pull them down by 11.5 percent.<\/p>\n\n\n\n

\"Change
Change in Online Retail Sales by Scenario. Chart courtesy of ICSC<\/em><\/figcaption><\/figure>\n\n\n\n

CBRE concludes that even though e-commerce was once believed to eventually eclipse brick-and-mortar shopping in popularity, e-commerce and in-store sales have become so interconnected that they lead to demand for additional physical space.<\/p>\n","protected":false},"excerpt":{"rendered":"

A return to pre-pandemic foot traffic levels is expected, according to CBRE\u2019s latest report. <\/p>\n","protected":false},"author":882,"featured_media":1004714113,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,23891,21742,21749,51037],"tags":[32789,32914,35836],"class_list":["post-1004714086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-national","category-latest","category-retail","category-trends","tag-cbre","tag-e-commerce","tag-international-council-of-shopping-centers"],"acf":[],"yoast_head":"\nStreet Retail Surges Toward Full Recovery - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Despite the pandemic\u2019s serious disruption of prime retail districts across the U.S., the sector is expected to fully recover this year.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Street Retail Surges Toward Full Recovery\" \/>\n<meta property=\"og:description\" content=\"Despite the pandemic\u2019s serious disruption of prime retail districts across the U.S., the sector is expected to fully recover this year.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-20T11:10:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-20T12:22:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/Change-in-Online-Retail-Sales-by-Scenario-featured.png\" \/>\n\t<meta property=\"og:image:width\" content=\"793\" \/>\n\t<meta property=\"og:image:height\" content=\"610\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/\",\"name\":\"Street Retail Surges Toward Full Recovery - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/Change-in-Online-Retail-Sales-by-Scenario-featured.png\",\"datePublished\":\"2024-05-20T11:10:00+00:00\",\"dateModified\":\"2024-06-20T12:22:51+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"description\":\"Despite the pandemic\u2019s serious disruption of prime retail districts across the U.S., the sector is expected to fully recover this year.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/street-retail-surges-toward-full-recovery\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/Change-in-Online-Retail-Sales-by-Scenario-featured.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/Change-in-Online-Retail-Sales-by-Scenario-featured.png\",\"width\":793,\"height\":610,\"caption\":\"Change in Online Retail Sales by Scenario. 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