Retail 2025: Suburban Sunbelt Is Strong

Summary

In this episode, Ray Kang discusses the evolving landscape of retail real estate in 2025, characterized by cautious optimism. He highlights the significant demand for suburban retail spaces, the shift in consumer behavior towards convenience and technology, and the increasing importance of sustainability in retail strategies. The conversation emphasizes the need for flexibility in retail formats and the role of technology in enhancing customer experiences. Overall, the retail market is adapting to new consumer preferences and economic conditions, presenting opportunities for investors and brokers.

Takeaways

• The retail market in 2025 is defined by cautious optimism.
• Vacancy levels are near 20-year lows, indicating market strength.
• Suburban retail demand is expected to outpace urban demand by 50%.
• Retailers are adapting by repurposing space and rethinking store formats.
• Foot traffic in suburban centers is up 15% year over year.
• Sales per square foot in next-gen stores are projected to increase by 25%.
• Sustainability is becoming a must-have for retail spaces.
• The Sunbelt is dominating national rankings for retail investment.
• Investor sentiment remains strong for well-located, well-leased retail.
• Retail is evolving, driven by lifestyle shifts and smarter strategies.

Chapters

00:00 Cautious Optimism in Retail Real Estate

03:00 Shifts in Consumer Behavior and Retail Formats

05:56 The Role of Technology and Sustainability in Retail

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