This trend is starting to change how retail space is being used—and how it's being vacated. Smith and Faith Hope Consolo, chairman of the retail leasing and sales division with New York City-based Douglas Elliman Real Estate, point out, however, that the vacated space is being taken up quickly by grocery stores. And not just any grocery stores, either. The specialty shops, such as Trader Joe's and Sprouts, are expanding rapidly. “Those big holes are getting filled, more by food than anything else,” Consolo says.

The other side of the online trend involves the right-sizing of space. Pitts points out that this involves retailers shrinking their stores, with Best Buy being the poster child of that trend. “In the old days, Best Buy needed a 35,000-square-foot box,” Pitts says. “They can get by with 16,000 square feet or 18,000 square feet today.”

None of this is good news for landlords that are still trying to fill vacancies left by other big-box retailers. But Bill Rose, director of Marcus & Millichap's national retail group, doesn't see the scenario as all doom and gloom. “While we've seen brands fade away, we've seen new ones blossom,” he says, pointing to Fixtures Living, a large-box furniture concept that is gaining popularity and growing in California. Strong locations should fill up pretty quickly, and in the case of not-so-great locations, there is still some hope because of recent innovations by developers over the last few years. “We've seen old Walmarts get repositioned from one large store to two or three new ones,” he says. “I've seen old department-store retailers get converted into a clothier on the top and a discounter on the bottom.”

Furthermore, even as the Best Buys of the world are shrinking their space, Consolo points out that drug stores have expanded their product mixes and footprints. “You can buy cooked meals, higher-end cosmetics and patio furniture now at our area drug stores,” she points out. “That requires a lot more space. And note that most of that is something you really can't buy on the Internet.”

As far as future consolidations go, Rose says anyone selling goods that are readily available on the Internet could face trouble, like what the industry has seen in electronics and music. The stronger chains will always be the ones where you have to physically go to a location to get a good or service, such as restaurants and convenience stores. “Experiential” retail, places where people just want to be, also will continue to thrive, and Rose uses Apple Stores as a prime example. “I don't have go to that store to buy anything, but we do because there is good education and entertainment value there.”

Pitts agrees, adding that successful retailers have struck a solid balance between bricks and mortar and online clicks. “If these companies aren't doing anything online, they're suffering. If they're doing 100% of their stuff online, they're not quite getting it, either,” he says. It's still part of the retail experience to check something out in person.”