Want to Sell Your Retail Property? Evaluate Some Of Your Options.
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My family owns a retail property and we’re considering our options for selling or renovating. With the rise of online shopping, isn’t brick-and-mortar retail dead? Should we unload this property?
More and more people are starting to feel like “retail is dead” and with several retailers like Sears, Payless, Toys R Us, and others filing bankruptcy and closing countless stores, it’s understandable that people would feel like there is a retail apocalypse happening. The truth is, according to a recent study by Deloitte, approximately 90% of retail sales are still happening in brick-and-mortar locations.
So I wouldn’t get rid of the space just yet. Here are some things you could consider:
Retail is Not Dead, it’s Changing.
The retail brands and stores that are thriving are refocusing their strategies toward creating a retail experience to attract consumers. The middle-of-the-road, uninspired retail stores are losing ground. We are now entering the age of cat cafes, champagne shopping, and unique servicescapes. Experiential shopping has taken over boring and cookie-cutter retail concepts.
Location, Location, Location!
This is not new information, but where your space is located will always matter. Some areas such as Beverly Hills, Santa Monica, Venice, Culver City, El Segundo, Playa Vista, and Downtown L.A. are some of the hottest spots that are experiencing a healthy retail market. Other considerations that affect the value of your property will include traffic count, walkability, and demographics as well as its proximity to signalized intersections.
Opportunity is King.
Look at the opportunities around your building. Is there an opportunity to reposition the property? We have recently seen more and more retail properties being re-positioned into mixed-use residential dwellings with retail storefronts below. This opportunity is can be attractive if you have the resources to develop.
What properties are adjacent to your building? I recently spoke with a client who saw this opportunity in his building and purchased the parcel next door for future development. The potential of development in his portfolio has already increased the value of his property.
There are definitely a host of variables, tangible and otherwise, that affect the valuation of a property. Your commercial real estate agent’s intimate knowledge of for your specific asset class, location, and the property’s potential is key to deciding whether your investment is worth holding or if it’s time to sell.
Reach out to Erica for questions, her current available properties, or just to say hi.
ERICA JOY MANIQUIS
Commercial Brokers International
310.943.8547 | firstname.lastname@example.org
DRE# 02058795 | ericajoymaniquis.com