LAS VEGAS—Since we are all about digging into retail trends while at ICSC RECon here in Las Vegas, we thought we would catch up with our thought leader, Partner Engineering & Science Inc., who can provide a different angle on the subject. Bob Geiger, principal and national client manager at the firm, tells GloebSt.com that as retail continues to move online, brick and mortar stores are increasingly being used as showrooms. As a result, many retailers are downsizing to smaller stores —in better, urban areas to be able to reach their clientele.

“We're seeing more building conversions than new development, generally in 'hot' urban areas,” he explains. But repositioning of retail space changes the site infrastructure, he notes, including requirements for ADA compliance and building systems such as HVAC and MEP, “so we're seeing high demand for these services.”

And with the growth in e-commerce, industrial has been a hot sector particularly for sites that are perfect for distribution centers, Geiger explains. “Existing industrial properties are requiring expansion and modification as they convert to more state of the art distribution facilities.” He points to the large retailers increasingly incorporating wholesale, retail and e-commerce operations under one roof to reduce overheads and meet increasing demands for overnight shipping or same day delivery. “From an expansion and upgrade standpoint, we are assessing current property conditions as well as evaluating the mechanical and other building systems to see what's adequate and can be utilized for the new design, and what the costs will be for new equipment and system. These evaluations are referred to Basis for Design Evaluations, and they can help minimize the capital costs on an expansion. He explains. “As the online shopping market continues to grow, I expect more stores will be looking at 'omni-channel' retailing— incorporating both online and brick and mortar stores —and we'll see the above trends continue.”