Archives: November 2019

Gen Z Shoppers Prefer Brick-And-Mortar Stores

While many marketing efforts currently concern themselves with attracting millennials, there’s a whole other generation right behind them that retailers should begin thinking about: Gen-Z. Categorized as the generation born between 1995 and 2005, Gen-Z is becoming a powerful force in the retail world, and it’s important for the future of today’s businesses that they pay attention to what shoppers ages 14-24 look for in a retail experience. The answer, surprisingly, is brick-and-mortar stores.

Why Do Gen-Z Shoppers Prefer Brick-And-Mortar Stores?

While millennials and Gen X-ers have helped push online retailers like Amazon to the powerhouses they are today, the next generation is beginning to have a very different relationship with online shopping, and a number of them have stated that they prefer the in-store shopping experience. A survey by A.T. Kearney shows that an overwhelming 81 percent of Gen-Z consumers would rather do their shopping in actual brick-and-mortar stores than they would online. This is partly due to the generation’s lukewarm feelings about social media: almost 30 percent of survey respondents say they would “very much” like to spend less time in the digital world. They also stated that they use shopping at stores as a way to disconnect for a while.

Gen-Z Shopping Behaviors

A recent survey by ICSC showed similar findings: Gen-Z shoppers ages 13-19 were asked about their shopping behaviors, and 84 percent reported that they primarily shop at brick-and-mortar stores for health and personal-care products, while 77 percent said they did so for apparel and footwear.
While this is good news for brick-and-mortar stores and the commercial real estate firms who build them, retailers shouldn’t abandon social media advertising efforts or e-commerce platforms- online shopping is still a massive part of today’s retail landscape.

Impact on Commercial Real Estate Firms

The bottom line is that the next generation of consumers likes the brick-and-mortar experience, which means that retail stores as we know them are not likely going anywhere. For a real estate developer or anyone who is affiliated with a commercial real estate firm in Denver, these findings may help shape the direction in which they wish to proceed in years to come. Since online retail has become such big business, civil engineering firm and those involved with commercial real estate may find themselves uncertain how to proceed in terms of development. These fascinating studies help to shed some light on the future of commercial real estate.

How Will New Clean Water Act Affect Commercial Real Estate?

Earlier this year, the U.S. Army Corps of Engineers and the Environmental Protection Agency (EPA) made a joint announcement that they would be repealing a 2015 rule that expanded the definition of “waters of the United States,” or WOTUS. This was the first step in a two-part process to define the scope of WOTUS that are defined under the Clean Water Act. The proposed definition, which is expected in its finalized form by late 2019 or early 2020, would replace the approach of the 2015 Rule, as well as all pre-2015 regulations.

Conflict Over Regulation Changes

The regulatory patchwork that was in place prior to the 2015 Rule required implementing two competing Clean Water Act regulations, leading to regulatory uncertainty among commercial real estate firm in Denver. The EPA and Army Corps of Engineers’ joint announcement about the decision to repeal the 2015 Rule has been met with much conflict: Chairman of the House Transportation and Infrastructure Subcommittee on Water Resources and Environment Peter DeFazio (D-OR) stated in a hearing with EPA Assistant Administrator for the Office of Water David Ross that “the Trump administration is leading a campaign to dismantle our nation’s Clean Water Act.” While this is also the belief of a number of environmental groups, Administrator Ross insisted repeatedly that the 2015 Rule contained procedural errors and did not implement the legal limits on the scope of the EPA and Army Corps of Engineers’ authority over the Clean Water Act, as Congress had intended.

Plans to Challenge Repeal

Environmental groups and some state attorneys general have already declared that they will be challenging the repeal. This may prove to be an uphill battle, as two federal district courts that have reviewed the 2015 Rule have found it to be legally deficient, issuing orders remanding it back to the agencies.

How Does This Affect Commercial Real Estate?

Regardless of how WOTUS is redefined, it is certain that commercial real estate will be affected by the changes to the Clean Water Act. Any real estate developer who is part of a ccommercial real estate firm in Denver or civil engineering firm should stay abreast of the latest news from the White House concerning new legislative decisions that could potentially lead to regulatory uncertainty. In the meantime, the 2015 Rule remains in place.