The death of the shopping center has long been lamented but a Colliers International report also shows that 75% of those surveyed plan on increasing their wellness spending, suggesting that health and wellness stores, often disregarded as anchor tenants in retail shopping centers, may finally be coming into their own. Sales of cannabis and CBD products alone are expected to jump more than 100%, according to the report, to $25B between 2018-2022. Not all of these purchases are going to be made online as some wellness spending is experience-based, like massages, facials, and spa treatments.
Convenience and Sustainability
A GlobalData report suggests consumers are into the idea of one-stop shopping for wellness items in retail settings. Retail centers can provide a synthesis of complementary businesses like health and wellness, fitness, retail, and dining establishments. Consumers may appreciate the convenience of making a single stop to meet all of these needs; in addition, it’s more environmentally friendly to make a single stop instead of driving to, say, four separate locations around town to complete the same purchases.
Putting Real Estate Development Plans into Action
These changes drive important considerations for commercial real estate firms and real estate developers looking toward future retail shopping center investments. Consider planning ahead to meet this increased expectation of need for retail space by adding space or converting space within larger retail environments. Think about what kind of aesthetic or structural characteristics complement wellness theme. As complementary businesses band together for omni-channel shopping experiences (e.g., Orangetheory and Hy-Vee, for example, where fitness centers are opening next to supermarkets), they will have unique real estate needs. Tenants who are open to these kind of strategic leasing arrangements can include big name retailers as well as health care clinics, spas, and boutique fitness centers – nationally known brands as well as smaller, independent businesses.
How Can Civil Engineers Help?
Work with a civil engineering firm to ensure project developments meet tenant needs and expectations. Civil engineers bring added benefits because of their insight into the role of environmental impact and design in successful real estate development; a physical setting and structure that’s complementary to health and wellness values can entice both health and wellness tenants and customers. Considering these projects now can position real estate developers to move quickly on capturing wellness tenants who are in need of space in response to consumer demand in the new year. Contact CenterPoint Integrated Solutions today to get the best of a civil engineering firm and a commercial real estate firm all in one.
There’s the old adage about joining ‘em if you can’t beat ‘em, and in today’s competitive shopping landscape, many big brands are taking that sentiment quite seriously. In fact, omni-channel services continue to factor heavily into companies’ operations plans for 2020 and beyond, and commercial real estate firms and real estate developers are taking notice.
How Does It Work?
In this kind of symbiotic corporate relationship, two brands work together, either by association or directly, to provide more of the goods and services desired by their shared clientele, with the hopes that their complementary clientele will be on board, too. Here are three examples:
- The healthy lifestyle connection between Orangetheory and Hy-Vee: More than 50 Midwest Orangetheory locations planned, and these new fitness centers will be located next to supermarkets that are already open and operating. The alignment of fitness and healthy eating goals for many consumers make this a natural fit. Additional benefits to consumers include the convenience of a one-stop trip for both needs; Orangetheory and Hy-Vee may also reap the benefits of cross-consumer business.
- Expanded UPS services through CVS and Michaels stores: UPS increases its reach (and convenience for customers) with the presence of CVS and Michaels locations nationwide; meanwhile, these retailers attract new and existing customers by expanding their available services. Customers can use these stores with UPS Access Point as pick-up and drop-off location for packages. A cornerstone of UPS’ retail services is its UPS My Choice service; users can sign for packages, track packages, have them forwarded to a different address for pickup, or held while the recipient is away.
- Online shopping powered by brick-and-mortar logistics: Toys ‘R’ Us is back, with the first new physical store opening in Paramus, NJ. But if you shop the famous toy store online, purchases go through Target’s website. The toy store in its fledgling rebirth may be able to hit the ground running this holiday season by piggy-backing on the bigger retailer’s supply chain, while Target (and the customers they serve) are the beneficiaries of online purchases from the relaunched toy store’s website.
Roles of Each Business Partner
The partner with big name recognition can give a boost to the partner with less; while the partner with less may allow the big name company to tap into a new revenue stream from a target demographic. Let’s look at the Toys ‘R’ Us/Target example. Parents of a certain age probably have fond memories of the old toy store. Shopping online at Toys ‘R’ Us allows them to feel that nostalgia while also being confident in their purchases because they’re backed by a known retailer with locations across the country, a major convenience.
How Real Estate Developers Can Help
Commercial real estate firms and civil engineers play a big role in executing companies’ plans for traditional and nontraditional partnerships. By turning to civil engineering firms near you, real estate developers can position themselves to provide the best level of service to corporate retail clients seeking these innovative collaborations with other brands. Contact CenterPoint Integrated Solutions today to get the best of a civil engineering firm and a commercial real estate firm all in one.