Few innovations have had more of an impact on physical retail centers than the rise of e-commerce. From strip malls to mega shopping complexes, convenience of one-stop shopping in a single building once represented endless convenience.
Fast forward to today. “Endless convenience” has a new definition, particularly for Colorado retailers.
The Impact of E-Commerce
Shoppers can buy products at all hours from the comfort of computers and smart devices in their homes. The changing tide turned into a quantum shift that cut into the bottom lines of “brick and mortar” retailers. Witnessing the changing tide, big-box stores are forced to literally and figuratively think “out of the box” and adapt to their ever-changing customer base and their purchasing habits.
Their efforts, particularly in Colorado, seem to be paying off.
Shopping centers statewide have gone beyond weathering the storm created by Amazon and other e-commerce companies, both large and small. They have thrived, expanding 20 percent over the course of the past decade. Structures in “trophy areas” featuring Starbucks and other high-profile anchors – specifically King Soopers and Whole Foods – continue to attract shoppers looking to leave the confines of their homes.
The explosion of actual foot traffic has made Colorado one of the most desirable markets nationwide. Investors are not only honing in on Denver which has enjoyed average annual retail rent growth of five percent from 2016 to 2019. There is also a particular focus on secondary and tertiary markets outside of the capital city that benefits from the booming economy that provides investors better yields.
Investing in real estate is risky, particularly in an ever-changing world. What was “old” is now “new” again. The insight of an experienced attorney can be the first step towards rewards beyond the risks.