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.
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.
Spotting demographic and economic trends can help a commercial real estate firm in Denver be proactive in helping retailers make good decisions. An ICSC look at Orlando and the realization of that region’s potential through mixed use, in-fill, and other developments can provide retailers interested in Central Florida and other communities across the country with important insight into trends that can influence their plans and performance. And those trends may also be valuable to similar communities across the country.
Here are 5 Trends Retailers Should Look Out For
- Cities with a strong tourist industry may find economic benefits from extending tourist experience. Oftentimes, there’s a high demand for places to eat and relax among tourists, as well as smaller venues where people can go aside from theme parks. Expanded offerings by real estate developer support the idea that vacation isn’t limited to theme parks and attractions. It meets the needs of tourists and also benefits the local economy.
- Beyond tourism, cities with downtown areas revitalized by big employers coming in may find their “peak” times greatly expanded, which means greater diversity in development. More workers in an area can lead to higher residency, and that increased residency can support more businesses, including national retailers; watch where big employers go to see residential and other businesses follow.
- Postsecondary schools in some communities can drive mixed-use development with fill-in neighborhoods and the supporting businesses they bring because of student use or need.
- In some areas, there is a trend toward more mixed-use areas and districts, including residential, business, and even education as schools sprout up to educate the children of those taking advantage of residential opportunities.
- Learn to love the master-planned community. Having a mixed-use real estate project that’s been well-organized and thoroughly planned by a civil engineering firm near you can alleviate some headaches that might ordinarily come from having to make changes as tenants line up with varying needs. Building to suit and getting on a tight cycle of build and lease can help improve tenancy and cash flow to support the next project.
Accomplish Your Goals with an Experienced Commercial Real Estate Firm
Use the observed trends in Orlando to consider how conditions may be similar in your community and how you may be able to replicate some of those economic success stories from Central Florida. By basing decision-making on evidence-based data and civil engineering, you may stand a far better chance of achieving your commercial real estate goals with new projects designed to harness the positive aspects of increased population growth, tourism, and more.
The shopping public seems to be embracing a hybrid combination of online and in-store shopping for its needs instead of forsaking one for the other, a recent study of back-to-school sales suggests. This could be an influential factor for companies considering projects with a commercial real estate firm in Denver.
Brick and Mortar Stores Still Anchor Sales
According to an ICSC study, most of those shopping for school supplies this year headed to brick and mortar stores instead of shopping only online this year, and most of those made their purchases at a shopping center, too. Some of those consumers shopped online and picked up their purchases in brick and mortar stores, a percentage that’s increased from 30% to 40% over the past three years.
How Consumer Trends Influence Commercial Real Estate
The ICSC study results suggest that customers value efficiency and convenience when it comes to making purchases. Being able to meet all of their shopping needs in one location like a commercial shopping center can mean just one stop instead of multiple stops at several locations, saving time, gas money, and sometimes, aggravation. Additional time savings comes from shopping for wanted items online ahead of time and choosing in-store pickup instead of having items shipped.
How Commercial Real Estate Development Can Fulfill a Need
A commercial real estate firm in Denver can seize on these consumer trends in order to meet the needs suggested by both of these statistics. What’s more, consumers themselves said they expected to spend more on school supplies this year; as these purchases reach $1,000 per household, companies with a sufficient combination of online and in-person shopping availability may be poised to acquire a greater share of those increased spending amounts.
Working with a civil engineering firm can help companies balance the needs of in-person shoppers and click-and-pick up shoppers. From floorplan to wayfinding to parking lot designs, a civil engineering firm near you can work closely with real estate firms to deliver commercial real estate projects that achieve a strong return on investment, harnessing the desire of consumers to leave the store with products in hand, whether they shopped on their own or simply picked up the items they purchased online.
If you’re looking for a way to boost sales for your company in a cost effective way, click-and-collect offers both online and brick-and-mortar stores some exciting possibilities. This method of interacting with consumers allows shoppers to browse and purchase items online for in-person pickup at a physical location. Merchandise is usually picked and packaged for pickup within a few hours, and sometimes in as little as 60 minutes.
Big Retailers Commit to Click-and-Collect
Among the big retail companies committing to this shop online/pickup in-person model in their upcoming commercial real estate projects are Nordstrom and Walmart, according to a recent CNN reports. What’s more, financial services company Cowen says that roughly 15% of consumers are already shopping this way, and sales for the click-and-collect model may reach $35 billion annually in 2020.
How This Model Helps Your Company Stand Out in Denver
A primary driver for offering consumers the opportunity to pickup online purchases in-person is convenience. It offers the same ease as online shopping but without the several days’ wait for delivery. No longer are consumers tied to a company’s store hours when they want to shop; no longer are shoppers beholden to delivery services and the potential for delays. In addition, when customers arrive in the store to pick up their online purchases, they may also buy additional items, which increases a retailer’s revenue even more.
Real Estate Considerations
Commercial real estate firms that have brick-and-mortar stores in the pipeline may want to think about including access to click-and-collect services in their designs. In addition to having in-store space to accommodate these services, real estate firms may want to revise in-store traffic and parking lot designs to ensure efficient access for customers that gets them in and out quickly.
While click-and-collect may still be a new concept to some shoppers, and some retailers, too, forward-thinking commercial real estate firms in Denver may want to consider the ways in which preparing for this service can better serve customers while boosting company sales. The trend toward click-and-collect service shows no signs of slowing down, and commercial real estate firms would do well to evaluate whether or not it’s relevant to their clients’ upcoming projects.
Companies typically strive to grow their sales through a variety of channels, and discount retailer Dollar General is no different. Recent reports suggest that it aims to attract customers with more disposable income by rolling out housewares and kitchen items, with fresh produce and private label cosmetics to come, according to shopping centers trade group ICSC. While it made its fortune on low-margin items like personal care products, cleaning supplies, and other household basics, the company now seeks to increase the income that comes from higher margin merchandise and added on-site services like FedEx drop off and pick up, as well as Western Union wire transfers.
Two Ways to Increase Sales
Dollar General is pursuing an array of strategies to increase sales, and among the most powerful among them may be an expanded product line and expanded services. By offering consumers a greater variety of products that they’re likely to need but would have otherwise had to go someplace else for, the company is more likely to keep those spending dollars in the store. The same goes for common services, like package pickup and drop-off and wire transfers. By encouraging customers to spend more time in the store, retailers can subtly encourage consumers to spend more money.
How Denver Commercial Real Estate Firms Can Help
Companies that want to increase sales should communicate this to their commercial real estate firm in Denver when upcoming projects are still in the planning stages, whether it’s for renovations, remodels or new constructions; and in cases where companies don’t bring it up, commercial real estate firms should ask their clients about it. A commercial real estate company can make sure that these goals are reflected in planning and development documents. From extra foot traffic to efficient floor plans and parking lots to handle increased visitors, real estate professionals in Denver are a great resource.
Booking the services of a commercial real estate firm in Denver early in the planning process can help Denver real estate projects get off the ground without delay. This kind of assistance can anticipate the floor plan, foot traffic, building materials needs, and more that go into a commercial real estate project where company and consumer needs and wants are balanced.
While a commercial real estate space has inherent value as far as its form and function, there are several additional ways to add value, and perhaps the most noteworthy is by adding curated art. You don’t need to worry about your own art world connections, though. By working with a specialized art consulting firm, your Denver real estate project can gain the cache that high quality art delivers.
Developing Your Art Collection
In working with a civil engineering firm, do make your desires for art known. If there exists the possibility that you’ll be installing a mural or large suspended piece of art, special wall reinforcements may be needed. Or perhaps custom lighting will be needed beyond what’s in the original plans to showcase a collection of prints or sculptures. By bringing the art collection process into the site design and development process as soon as possible, any unique structural or architectural needs can be addressed at less cost than later changes might require.
How an Art Consulting Firm Can Help
Instead of brushing up on any college art classes you took or relying on friends for introductions to artists, an art consulting company can help you source the ideal pieces that fit your space and your budget. For example, paintings in the style of Old World Masters would nicely accent a building with traditional architecture and building materials while more avant garde pieces would complement a modern design that emphasizes steel and glass. With a good understanding of your target clients or tenants, an art consultant can find pieces that project an image that’s in keeping with your existing site plan and design.
Art Placement Matters
It’s not usually enough just to choose good art. It needs to be placed in areas where it will be seen and appreciated. Consider using art to tie together less-trafficked areas of your commercial real estate space. Art is also an ideal method of unifying multiple floors that include a variety of tenants under the umbrella of your building brand.
There’s a lot riding on your commercial real estate development. What better way to quickly add value without overhauling your site design and development process than by adding a curated art collection? By engaging with the right consulting firm who can collaborate with your civil engineering firm, you may find the ultimate value of your project increases more than you could have ever pictured.
At first glance, it can be hard to see how customers buying items online for in-store pickup can truly benefit a retailer. However, ISCS reports that retailers who offer this service have experienced a decrease in costs and an increase in sales. The phenomenon is called the halo effect of retail commercial real estate, and repeats itself across the country, not just in Denver.
Increased Trust and Security for Consumers
The presence of a brick-and-mortar retail store can provide online shoppers with a real feeling of security in their choice to buy online. Shoppers are already familiar with the retail store so they know the quality of their selections. And if by chance they are not satisfied, they can easily turn to the brick-and-mortar store for assistance or returns.
Denver Consumer Convenience
Shopping online with in-store pickup also offers consumers convenience that may be rewarded by continued loyalty. When prospective customers are pressed for time and shop online, the ability to come to the store and pick up their purchases that same day — sometimes within an hour — can be the factor that sways them into buying from a particular retailer.
In addition, some retailers will benefit because the customer’s visit to the store will result in additional sales through impulse purchases or planned purchases that could be made elsewhere but won’t because those items are available from the retailer they’re making an online purchase from. Creating that positive customer experience is invaluable; not only might the customer think of that retailer first next time, chances are good that she’ll talk up what a good experience it was with friends and acquaintances.
Easy In-Store Pickup
Customers who shop online and pick-up in-store expect that it will be quick and efficient to run in to the commercial retail space and collect their purchases. For that reason, it’s vital to work with a civil engineering firm on the site design and development necessary to include that function in the overall structure. No retailer wants to erode the goodwill that accompanies a happy customer being able to get exactly what they want the same day by failing at the last mile, in-store pickup.
Offering in-store pickup for online purchases can boost sales. When customers shop with a retailer they trust, who offers them a convenient service that enables additional purchases with ease, they may be more likely to spend money there. Customers see this service as an added value and a growing number of retailers see this service as a tool to increase the bottom line.
When a company decides to open a brick and mortar store through a commercial real estate firm, there are a lot of calculations that go into that, everything from the costs of construction to inventory and staffing. But one thing that many retailers might realize is just how well a physical storefront can support their online sales.
The Halo Effect
Retail stores have what’s called a halo effect that supports online shopping. The ability of consumers to shop at home and pick up locally in Denver helps. It’s the best of both worlds – the comfort and convenience of shopping at home with the immediate gratification of entering a store just to pick up your merchandise.
In-Person Shopping Leads to More Online Shopping
Many retailers have long complained that people browse their aisles only to later shop for those same items online. And while that might be true in some circumstances, it’s also been proven true that retailers with brick and mortar stores are likely to see higher web traffic on their own websites, according to research by the International Council of Shopping Centers. And when web traffic picks up, it’s more likely that it will also generate sales.
In many cases, people like to shop online with retailers that they know and trust. What better way to know and trust a retailer than by shopping in their physical store? It’s a great opportunity for brand engagement, where that good relationship can carry over into a positive online shopping experience, whether the customer has goods delivered to their home or they go to the store for pick-up.
How a Civil Engineering Firm Can Help
When retailers are considering building a brick and mortar store, it’s important to engage with not only a commercial real estate firm but a civil engineering. Civil engineers in Denver and beyond are well-qualified to determine the appropriateness of a proposed site for a given development plan. By having a strong development plan that supported behind the scenes by the technical expertise that can make those plans a reality, a brick and mortar store can, in addition to reaping the benefits of foot traffic and sales, achieve greater web traffic and online sales, too. contact CenterPoint Integrated Solutions today for help putting your plans into motion!
When commercial real estate firms work with civil engineering firms to plan a new project, there are numerous criteria to be considered, from site selection and planning to construction and development. But what about the people who will use the site? Of course you have tenants in mind, but thinking about your project holistically can deliver a greater success than you or your tenants could have dreamed of.
Planning for the People
It’s crucial to remember the importance of people when planning a commercial real estate development, the people who are going to use that site, whether it’s for work, to live, to play, or just to be. In Denver, like the rest of the country, people place a high value on experience. It drives where they spend their leisure time and their money. When commercial real estate developments that include retail space, residential space, office space, and public spaces meet that need for experience, they may be more likely to find success.
Think Outside the Box
When commercial real estate firms cultivate the right mix of tenants, from retailers to hotels, coworking spaces, and more, people will come because they want to be there. Take a big picture view of your commercial real estate development project instead of focusing on the details like ruling a tenant in or out based on say, credit rating. Yes, those things matter, but sometimes, taking a chance can deliver a greater return for both sides than either thought possible. With the right tenants, even if maybe they’re not ideal on paper, you can leverage that experience into community because people will flock to you. And that community will keep it going because a community takes care of its own.
Contact a Commercial Real Estate Developer Today
It’s great to build spectacular commercial real estate developments but without the people who will use them, is it really a success? Perhaps, thinking about who the final users of your commercial real estate development project might be earlier in the process can guide you toward making decisions that support those users. Civil engineering firms consider things that people need like green space and public transportation. Find a way to incorporate these elements in your design to attract diverse crowds. contact CenterPoint Integrated Solutions today to get the best of a civil engineering firm and a commercial real estate firm all in one.