• The pandemic has accelerated shifts in consumer behavior. Successful retailers, from the digitally native retailer to big-box, have responded by repositioning the in-store shopping experience and revamping delivery platforms. In particular, these retailers have placed stronger emphasis on logistical fundamentals including seamless in-store pick up, next day shipping, and time-sensitive discounting. As the marketplace evolves, tenants with healthy omnichannel strategies will maintain an advantage over one-way, brick-and-mortar competitors.
• With increased retail sales and improved consumer sentiment, national retail rent collections stabilized at rate of 86% in Q4, an approximate 5% drop from pre-COVID collection rates (91%). Movie theaters remain most challenged with collection rates of about 33%; fast food and grocery stores are most stable, collecting 93% and 97%, respectively.