Features

By Doug Greenspan, A&G Real Estate Partners The old playbook of waiting to address leases in bankruptcy is over. In today’s environment, where chainwide liquidation is becoming an increasingly common outcome, landlords cannot afford to be passive. It is crucial to proactively engage with tenants, understand their financial health, and be prepared to negotiate and adapt lease terms to help them avoid bankruptcy court.  Consider what has happened in American retailing since the pandemic. While some sectors thrived during the initial COVID-19 lockdowns and the subsequent release of pent-up demand, a troubling number of companies experienced a transient spike in sales fueled by government stimulus, only to see those gains evaporate. This left them in a precarious position in which they were unable to find their footing in the changed economic landscape. Conn’s, known for its Conn’s Home Plus banner, is one example. This publicly traded retailer saw an initial boost as temporarily cash-flush consumers invested in home goods and electronics. Sales soared, but then began declining in the fourth quarter of 2022. Management remained optimistic about a recovery of those prior volumes. However, as the stimulus faded and the broader economic environment began to be characterized by rising interest …

Retail spaces have changed dramatically over the past decade. Enclosed environments, once leading the trend in the industry, have been traded for open-air environments. Many properties that were once solely occupied by retail tenants now have multiple uses, including entertainment, office, multifamily and hotel. In a time when it’s tough to develop, smaller, convenience-oriented projects are dominant, with the redevelopment of regional properties a close second. Finding new life in old real estate is the mantra of today. Retail environments have the future in mind when considering design. E-commerce is integrated into all things retail, and technology has to be considered in new designs. Because physical retail is now viewed as an ever-changing environment by tenants and owners, the flexibility of any new space is incredibly important. What’s being designed today may not be the use in a few years. Also of utmost importance to consumers is placemaking — consumers crave a reason to enter a physical space. They need to feel invited, welcome and intrigued at the same time.  REBusinessOnline recently spoke to a number of retail architects and designers to understand what creating a successful retail environment looks like in the mid-2020s. Incorporating E-Commerce While e-commerce hasn’t been a threat to …