REAL Exclusive Magazine is a luxury publication focused on the west coast of Florida. It is distributed to affluent consumers. REAL Exclusive Magazine features celebrities, luxury goods, wonderful estate homes and editorial by leading individuals in their respective fields.

Backfilling Empty Retail Boxes By William Henry PhD

Backfilling Large Empty Retail Boxes With Out Of The Box Uses

By William Henry PhD

The Internet is Siphoning Retail Sales from Traditional ‘Bricks and Mortar’ Stores and Thereby Contributing to Vacancies

The 600 pound gorilla at the recent retail convention in Las Vegas known as ‘RECON’ which is an acronym for the ‘The Global Retail Real Estate Convention’, was the siphoning of some retail activity into the internet. A common complaint by some traditional retailers and building developers is that various sales transactions over the internet are not taxed and therefore those retailers who are better known for their ‘bricks and mortar’ presence suffer. Younger store patrons are often seen with their iphones scanning the bar codes of merchandise in well known stores and then simply walking away and ordering the merchandise via some internet distributor who can often undercut the price and eliminate the sales tax burden as well. The large retailers belittle the impact to store sales by stating that most patrons continue to ‘enjoy the social benefit of shopping’ and believe that most folks will continue to patronize the stores despite this growing trend by the ‘under 30 something crowd’. However the ‘millenniums’ seem to get most of their socialization needs met over the internet as well, and if they travel to socialize, can be found at sporting events and other entertainment venues. Some analysts represent that over 22% of all retail sales in some market segments occur over the internet vs. the more traditional market place transactions conducted in stores or malls.

Backfilling Empty Retail Space With Other Retail Tenants Is Unlikely to Make a Dent in Vacancy Rates

This trend is disturbing to traditionalists who demonstrate their deep denial by scrambling after the remnant of other viable retailers to backfill vacant retail properties. They hope to ’slice and dice’ large vacant boxes with smaller retail tenants who will be willing to pay comparable rents to those paid by the vacating party. This play has not panned out too well with today’s consumer who is less willing to part with cash for discretionary purchases of retail goods and services. Unfortunately the landlords have not recognized that these economic tendencies are likely the result of long term structural changes and not the result of a short term economic downturn.

‘Out of the Box Building Uses’ Often Not Considered When Leasing Retail Space

When posed with the logical alternative to backfill vacant space with other uses such as outpatient clinics, charter schools, churches, and even multi-family residential, those with substantial retail property holdings rebuff such overtures in public representations. However while turning the blind eye to these viable 21st century uses may seem inexplicable, this apparent ‘walk away tactic’ is more for the consumption of the retail brokerage community who the landlords seek to ‘incentive-ize’ to continue their search for retail tenant prospects. In private the discussions take on a different, more accepting tone. ANY viable use will be entertained as long as most of the store modifications can be borne by the tenant and not the landlord. This bodes well for the more creative and innovative brokers and architects who can help visualize and facilitate backfilling these vacant spaces with alternative uses in a cost effective and practical manner. RGA is one of those design companies.

Reliable Group, LLC Architects AA# 0003523 is a well-known architectural and construction management firm based in Tampa, Florida. RGA is headed by Dr. William Henry, both an architect and certified expert witness who issues opinions and testimony concerning design and construction related matters. Having designed over 250 landmark buildings in the state of Florida, he has represented and testified for both plaintiffs and defendants in cases involving code violations such as associated with design and construction defects as well as American Disabilities Act – ‘ADA’ violations. William Henry, PhD (Bill) may be reached at (813) 226.2220 or bhenry@rga-design.com.

Links to this article are encouraged