Page 15 - 2019 Colliers Forecast Book

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.
92.0%
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

89.5%
2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19

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

93.42%
93.11%
90.22%
85.43%
83.60%
80.10%
79.34%

2012 2013 2014 2015 2016 2017 2018
Shops at CenterPoint