We anticipate that urban markets will continue to be volatile, but for investors looking for more reliable retail investment options, secondary and tertiary markets will be a strong investment. Necessity-based retail that reflects the daily wants and needs of the surrounding community won't go anywhere.

GlobeSt.com: What impact will urbanization have on the retail real estate industry in 2017? And what are the implications?

Fidel: While urbanization has garnered a lot of media attention, we're actually seeing an opposite trend. According to the National Association of Realtors, last year, Millennials, who currently make up the largest generation in American history, purchased 35% of homes sold in the US.

Understanding that the median age of millennials is 25 and that the average age of a first-time home buyer is 31, we can expect this number to continue to boom in 2017, marking a continued move back to the suburbs for the Millennial generation. As Millennials make this move, and as e-commerce continues to impact urban retail, we're expecting to see more growth in suburban markets. However, to compete with e-commerce and other retailers, both urban and suburban retailers will be pressured to make their stores more experiential and will need to be quick to respond to the wants and needs of consumers, including everything from offering healthy food to adapting to new technology to help consumers find what they are looking for.

Will this major redevelopment spark more momentum in Midtown? Decide for yourself. In any case, industry watchers say brick and mortar stores will not go away despite the e-commerce rush. More on that in part two of this exclusive interview.

ATLANTA—Retail developers are bullish heading into 2017, especially those exploring secondary and tertiary markets. Some are pointing to urbanization and Millennials as a positive, despite what past predictors have offered. GlobeSt.com caught up with Karim Fidel, founder and principal at Unison Realty Partners, to get his thoughts in part one of this exclusive interview.

GlobeSt.com: What is your overarching view of the retail commercial real estate scene in 2017?

Fidel: We're looking toward 2017 feeling particularly optimistic about secondary and tertiary markets. According to JLL, urban retail volume is down by $1.7 billion year-over-year, but activity in secondary markets is skyrocketing, with JLL citing activity increasing by 34.9% in their Q2 2016 report.

We attribute the success of these markets to a few key factors—Millennials leaving urban centers to move back to the suburbs, the ability of retailers in these markets to quickly adapt to consumers and provide the experiential shopping experience consumers are looking for, and that the types of retailers in these markets tend to be less vulnerable to the growth of e-commerce. This is because many of the retailers in these more suburban markets tend to be places where the local community can go to fulfill their daily needs, from grocery stores and liquor stores to nail salons and health care facilities.

We anticipate that urban markets will continue to be volatile, but for investors looking for more reliable retail investment options, secondary and tertiary markets will be a strong investment. Necessity-based retail that reflects the daily wants and needs of the surrounding community won't go anywhere.

GlobeSt.com: What impact will urbanization have on the retail real estate industry in 2017? And what are the implications?

Fidel: While urbanization has garnered a lot of media attention, we're actually seeing an opposite trend. According to the National Association of Realtors, last year, Millennials, who currently make up the largest generation in American history, purchased 35% of homes sold in the US.

Understanding that the median age of millennials is 25 and that the average age of a first-time home buyer is 31, we can expect this number to continue to boom in 2017, marking a continued move back to the suburbs for the Millennial generation. As Millennials make this move, and as e-commerce continues to impact urban retail, we're expecting to see more growth in suburban markets. However, to compete with e-commerce and other retailers, both urban and suburban retailers will be pressured to make their stores more experiential and will need to be quick to respond to the wants and needs of consumers, including everything from offering healthy food to adapting to new technology to help consumers find what they are looking for.

Will this major redevelopment spark more momentum in Midtown? Decide for yourself. In any case, industry watchers say brick and mortar stores will not go away despite the e-commerce rush. More on that in part two of this exclusive interview.