Page 14 - 2019 Colliers Forecast Book
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14   Colliers International | West Michigan

          the “Halo Effect.” ICSC also reported that almost 70 percent  corridors,  owners are now concerned with creating the
          of shoppers who purchased items online to pick up in-store,  right tenant mix to enhance their center and the shopper’s
          ended up purchasing at least one more item at time of pick-  experience. Where in the past, landlords were welcoming of
          up. As many brands started with the less-overhead route of  almost anyone who was willing to sign a lease, now we see
          e-commerce, several have quickly realized the importance of a  groups of tenants come together that complement each other.
          physical presence and have supplemented with actual stores.  The Village at Knapp’s Crossing is a development we saw
          According to Colliers retail advisor Chris Prins, “Brick-and-  take shape this year with a tenant mix that has grown to have
          mortar stores are more essential today than ever before. A lot  a common theme. Orangetheory Fitness, Clean Juice Organic
          of people can sell a product online. ‘Brands’ are built by being  Juice Bar, Neurocore, and Woodhouse Day Spa have helped
          able to touch, and feel, and experience. It’s about identity.”   create a wellness dynamic that customers identify with.

          Many landlords are also evaluating the identity of their shopping  The holiday shopping season is always an indicator of
          center. With record-low vacancy near 8 percent in our main  consumer confi dence and a sign of retail market health. This

          Percentage of People Who Visit Physical
          Stores vs. Online Stores at Lease Once Per
          Week (non-food)
          Source: GlobalData Consumer Panel
                   57.3%                                             As large retail stores vie to stay
              38.2%                   30.3%                          relevant, we are also seeing
                                                                     smaller, newer stores, many of
                   VISIT PHYSICAL STORES  VISIT ONLINE STORES  28.2%  21.1% 21.4%  whom started online, step into

                                           2 2 2 2 2 2
                                                                     physical space.

          Generation Z  Generation Y  Generation X  Baby Boomers

          Retail e-commerce Sales in the U.S.
          Source: US Census Bureau

           e-Commerce Sales (in million of U.S. Dollars)  $100,000




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