Page 15 - 2019 Colliers Forecast Book
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Colliers International | West Michigan  15

          past shopping season was, by initial indications, the strongest  Creativity by landlords, tenants, and advisors is at a premium.
          in more than six years. On average, more than 30 percent of  Outlots have grown in value, and the value of splitting off
          overall retail sales occur over the November and December  parcels for retail use should remain a growing trend. We saw
          months. It has been estimated by accounting fi rm Deloitte that  this with Chick-fi l-A opening a location in March on an outlot
          this season of spending grew by as much as 5 percent from  in front of the former Toys-“R”-Us at 3445 28th Street SE, and
          last year, whereas online shopping grew by approximately  recently, Christian Brothers Automotive purchasing an outlot in
          20 percent. While the online percentage grows, much of this  front of Kmart at 4111 Plainfi eld Avenue NE.
          shopping is still done in stores.
                                                               We look for 2019 to be a plateau of the retail market. As big
          Logistics of delivering packages to consumers is a new  box stores fi ll, others will start to see their demise. Local stores
          challenge that many online retailers are tackling. Amazon  will continue to thrive, while national brands continue to look
          opened a new fulfi llment center in West Michigan, and other  into our market for the fi rst time.
          third-party logistics companies are following suit.

          Discount stores are also heating up. Aldi, Dollar General, TJ   Retail Occupancy Rates
          Maxx, and Marshalls have all made moves and we expect
          more of this to occur within the product type. Luxury is doing   Source: Colliers International | West Michigan Research
          well, too. It’s the middle companies that are more commoditized
          due to lack of specialty products that are facing a fi erce   92.5%
          competition for market share.
          Construction activity should remain positive in 2019, despite
          costs.  The value of locations at “the corner of Main and   91.5%
          Main” is at a historical high, yet availability of these sites
          remains low. Downtown, the Bridge Street and Stocking   Occupancy Rates  91.0%
          Avenue development has broken ground on a 9,000-square-
          foot retail addition, and Studio Park will continue work on its   90.5%
          mixed-use development.
                                                                  90.0%                                    PROJECTED  PROJECTED  PROJECTED

                                                                       2Q16  4Q16   2Q17  4Q17   2Q18  4Q18   2Q19

                                                               Percentage of Shoppers Who Visited Physical
                                                               Stores on Black Friday
                                                               Source: GlobalData Annual Survey


                                                                  2012   2013   2014   2015   2016   2017   2018
                                               Shops at CenterPoint
   10   11   12   13   14   15   16   17   18   19   20