Online Sales Support Big-Box Retailers
- COVID-19 has highlighted the importance of online sales for retailers. In the current economic climate, an established e-commerce platform has been a near prerequisite for success. In particular, the growth of e-commerce across sectors has tempered consolidation of leased space and slowed vacancy growth in single-tenant properties hosting national retailers with online platforms.
Success by Industry Sector
- Leasing has been most active in the discount, home improvement, grocery, and automobile industries. Despite slowed growth from banking tenants, some have embarked on cost-saving efforts to "right-size" portfolio branches and pivot to grocery-anchored centers.
- Fitness operators and primarily dine-in restaurants remain inactive.
Paying the Bill
- National retail rent collections rates have been restored from 80% in Q2 to 95% in Q3 for freestanding retail and 61% to 82% for shopping centers.