Retail Commercial Real Estate Research
To answer and respond to an RFP for Appear Here by researching (1) the trends in retail commercial real estate, (2) how direct-to-consumer brand start-ups reach audiences outside of Millennials/GenZs, (3) what news/information is out there on the use of retail/physical space as a marketing channel, (4) how long does it take to find and open a new retail space, and (5) the history of dynamic pricing (what industries have used it and what effect does it have).
Trends in Retail Commercial Real Estate
- One trend is sellers are questioning how buyers will finance their acquisitions due to the current challenges retail faces.
- The gap between what buyers are willing to pay and what sellers expect for their properties has lessened. Retail properties remained on the market longer than other types, but well-located and grocery-anchored retail properties sold faster.
- CBRE Head of Global Research stated that she expected retailers to reinvest in brick-and-mortar stores with many ecommerce and online companies looking to shift to a physical store to grow their business.
- There is a large amount of D2C start-ups that are targeting the elderly for items such as hearing aids and incontinence diapers.
- The start-up Material caters to not only Millennials, but also seniors looking to down-size and purchase home goods. Their marketing strategy to all of their customers was not to be too "slick" or fancy but to create a story that people could connect to.
- A start-up, SentabTV, markets towards elderly individuals. Their approach was a passive approach by conducting in-person surveys and speaking with nursing home patients to learn about their needs and not trying to sell them anything right away.
Opening Retail Space
- Looking to lease a space of 10,000 sf on average takes 4-6 months. A space larger than that could take 6-12 months. However, another site says it takes an average of 2-3 months depending on the space and business.
- You can start a retail business in around 6 months. Getting loans and hiring employees adds to the amount of time.
- According to Shopkeep, a start-up retail business costs on average $100,000 (not everyone will spend this amount). This is determinant upon where you open your business, technology, rental fees, and marketing.
Summary of Initial Research
- Our initial one-hour research was able to provide a brief overview of three of the questions asked. To completely understand each question we would recommend additional research.
Proposed next steps:
You need to be the project owner to select a next step.
We could identify 2-3 additional trends in the commercial real estate industry (especially retail) that would include the continued growth of technology and its uses in real estate and the retailers looking into smaller markets.
During our initial hour of research, we were unable to fully explore the topic of dynamic pricing. We would recommend additional research into this area by providing an overview of what dynamic pricing is, what industries have used it, what effect does it have on the consumer/company, and 2-3 ways to implement the strategy.
We could continue researching how D2C companies are marketing to consumers that are non-Millennials (i.e., elderly) by identifying 2-3 trends for this particular type of marketing such as creating magazines and offering gifts with purchases.