Property owners are adapting to new tenants in the face of a tough economic climate
Recent economic factors have led to especially hard times for the commercial real estate industry; suitable tenants are few and far between, banks are unwilling to lend, and vacancies are at an all time high. In addition to the lagging economy, advances in technology over the past decade are changing the way consumers conduct business. As more and more people turn to online shopping, the need for physical retail becomes less and less.
In the wake of all these factors, First Commercial Realty has found that finding a “tenant of the times” may be the best bet for filling vacant space. The idea is simple; fill vacant space with tenants whose business is seemingly immune to this economic climate. A few such examples are:
Dollar Stores
With the economy in a slump, consumers are always looking for the best prices. Dollar stores have long been a staple in the bargain shopper niche. While many necessities simply cannot be bought or sold for one dollar, these establishments are be a great place to buy party supplies, arts and craft materials, holiday décor, office and school supplies, and home goods.
Stores such as Family Dollar, Dollar Tree, and Dollar General offer consumers significantly discounted prices on goods. For anyone struggling to save money in this economy, discount establishments are the
way to go.
Dollar stores can be found at many First Commercial properties. A new Family Dollar store, located in the Highland Park Place shopping center, opened in the fall of 2011. The Perrysburg Plaza in Perrysburg, Ohio, is home to a new Dollar Tree store which opened in March 2012.
Discount Retailers
In the same vein as dollar stores, establishments like TJ Maxx, 5 Below and Big Lots offer name brand merchandise for a discounted price to consumers. Much like an outlet, these retailers carry products that can be offered for a low price because they are considered “off season” or “irregular”. For example, TJ Maxx offers discounts of up to 60% on a number of brands which can be found in competing establishments such as Macy’s or Nordstrom simply because the products were produced as part of the previous season’s line, and can no longer be sold at a high end retailer.
Alternative Education and Career Schools
These days, it is tougher than ever to find stable employment. Many people are turning to alternative education institutions and career training services to ensure they are properly prepared to enter a competitive work force. These vocational training centers range between 15 and 20 thousand square feet, and are well connected to local employers. Students graduate with state certifications, allowing them to work in a variety of professions in the fields of information and technology, medical, and business, among many others.
Nothing is certain these days, but these trends have been recognized by experienced real estate professionals. For commercial property owners nationwide, tenants like these may be the best bet for vacant filling space.