Retail real estate has demonstrated remarkable resilience over the past five years, despite the global impact of the American mall apocalypse and the pandemic.
Numerous retail categories have successfully overcome these challenges. The best performing retail types are those that cater to communities. They achieve this either by integrating retail with leisure in open-air mixed-use complexes, where people gather to work, shop, or live, or by providing neighborhood offerings.
Several key trends have driven these changes. Firstly, increased remote working has shifted retail demand from city centers to suburban settings. Secondly, de-globalization has led to a surge in demand for local offerings, particularly in the leisure and restaurant sectors. Lastly, inflationary pressures have heightened the demand for essential goods and services, such as food and necessities.