What’s ahead for the retail real estate industry in 2016? Buxton turned to leading industry experts to find out.

1. 2016
RETAIL REAL
ESTATE OUTLOOK

2. The retail industry’s evolution has
accelerated at an unparalleled
pace over the last few years.
And nowhere are these changes
more apparent than in retailers’
real estate strategies.

3. So what does that mean
for the retail real estate
industry in 2016?
Buxton turned to leading
industry experts to find out.

4. State of the Retail Real Estate Market

5. The U.S. market will
continue to offer retailers
significant opportunities to
grow their business due to:
The strength
of the U.S.
economy
Increases in
consumer
spending

6. But, consumer demand
and easier access to
capital has resulted in:
• Vacancy compression
• Rising rents across most
major markets

7. Competition for Retail Space

8. Unlike last year, our panel of
experts expressed a unanimous
opinion about what the level
of competition for retail real
estate will look like in 2016.

9. While retail space
isn’t necessarily hard
to find, quality retail
space is absolutely
competitive and only
going to get more so.
Buxton Senior Vice President
Paul Schlesinger

10. Clay Smith, managing director
of retail brokerage at JLL,
agrees, noting that it will be
“harder and harder to find
new real estate opportunities.
In most major markets
retail development is still
constrained.”

11. The intense competition
for real estate has led retail
and restaurant executives to
consider alternatives, driving
many of the trends highlighted
in the next section.

12. Real Estate Trends

13. Many of last year’s trends will continue
into 2016. However, these are the four
trends we believe will intensify in 2016:
Secondary and Tertiary Markets
Omnichannel Retail
Clicks to Bricks
Food’s Importance
1
2
3
4

14. Secondary and
Tertiary Markets

15. 2016 is the year of the
secondary and tertiary markets.
But why would retailers
abandon the security of
proven primary markets?

16. Several factors are driving the trend:
Oversupply of Capital
Migration Patterns
Lower Prices
Data Provides Confidence
1
2
3
4

17. Omnichannel Retail

18. As retailers move from planning
to implementing omnichannel
strategies, patterns have
emerged that have a significant
impact on retail real estate:
• Reevaluating and optimizing
real estate portfolios
• Shrinking store footprints

19. Clicks to Bricks

20. Online retailers are increasingly
announcing plans to open
physical stores, proving Scott
Galloway’s bold claim that
“pure play retail is dead”
and that online retailers must
open physical locations in order
to survive correct.

21. Food’s Importance

22. Food is one thing that online
providers have yet to master,
leading restaurants and
grocers to play a key role in
driving traffic to retail centers.

23. Hot Markets

24. In the end, the question that retail
decision makers care most about is
Where should I
invest in 2016?

25. In order to predict hot markets
for retail growth in 2016, Buxton
examined site scores run
between December 2014 and
December 2015 by a sample
of current Buxton clients in the
retail and restaurant industries.

26. Some of the markets that seem
to be drawing the most attention
from retailers are:
Atlanta
Chicago
Dallas/Fort Worth
Houston
Minneapolis/St. Paul

27. To view our entire list of hot
markets and to read the full report,
download it now.
GROW WITH US. 1-888-2BUXTON | www.buxtonco.com
Read More u