Landlords are being urged to adopt an adaptable approach to their retail properties, according to Spence Mehl, a partner at RCS Real Estate Advisors. As the retail landscape undergoes significant transformations, we chatted with Mehl on the subject, where he shared his insights and thoughts on the current trends in the market surrounding the recent ICSC Las Vegas event.
Mehl points out that landlords have been displaying a high level of confidence in lease negotiations and amendments, fueled by a period of economic growth and a seemingly stable retail sector. However, recent bankruptcy filings from prominent big-box retailers and smaller chains, such as Bed Bath & Beyond, Buy Buy BABY, David’s Bridal, and Tuesday Morning, have sent shockwaves through the industry.
The wave of bankruptcies has raised concerns about the potential flood of vacant retail spaces hitting the market simultaneously, he tells GlobeSt.com. This, in turn, has prompted questions about how landlords will react and whether their bullish stance will remain unchanged in the face of such challenges.
The retail industry is no stranger to change, with online shopping, evolving consumer preferences, and the impact of the COVID-19 pandemic reshaping the way people shop. Landlords now find themselves at a critical juncture where they must adapt to the changing market dynamics to remain competitive. According to Mehl, it will be fascinating to see how landlords react and how bullish they remain if an influx of empty spaces floods the market simultaneously.