SAN DIEGO—Common areas for socializing, collaboration and recreation are essential to the retail experience, but what's even more important for developers to keep in mind? We spoke with CBRE San Diego's senior associate Carrie Bobb exclusively about the retail environment here, how it's changing and what is crucial for retail-development success.
GlobeSt.com: How is the retail environment different today than it was five years ago?
Bobb: It's all about hospitality. It's all about experience. Retail entertainment is now expected. Developers and landlords are definitely making an effort to create a memorable, experiential retail environment. They are creating spaces and places where you want to come back.
For instance, the Village at Pacific Highlands Ranch is a new development in Carmel Valley where the developer has designed a Village Square at the heart of the project, similar in size to a football field, to be the community's backyard and gathering place. It features fountains, fireplaces, outdoor living rooms, outdoor dining and a bocce-ball court. It's a place where you can sit on the patio at sunset and enjoy a glass of wine while watching your kids play outside. Our studies have shown that the centers that have delivered an experiential environment, that give people a reason to stay at the center longer, have enjoyed higher sales per square foot than those that have not.
GlobeSt.com: How has the merchandising/tenant mix evolved?
Bobb: As consumers look for that experiential retail environment, restaurants set the tone. People view going out to eat as their form of entertainment. In 2014, for the first time ever, restaurant sales surpassed grocery-store sales in the US. We are seeing some really creative, fun, fresh concepts coming out of San Diego. While the credit behind the chain restaurants is important, incorporating local, unique, one-off restaurants like Puesto, Cucina Enoteca and the Patio drives consumer traffic and adds character.
GlobeSt.com: In your opinion, what effect does online shopping have on brick-and-mortar stores?
Bobb: There are certainly examples of situations where online shopping has eroded brick-and-mortar sales, but we don't think it will make them go away, but rather positively influence consumers' shopping habits. The role of social media is very important; Pinterest, Twitter, Facebook and many other sites have created more purchasing opportunities for consumers. It is estimated that next year, more than 44% of all retail sales will be impacted by online influences. It's a world of interactive retailing. The retailers who are embracing online shopping and social media as a way to influence consumer shopping behavior are reaping the benefits.
GlobeSt.com: What do you think is the most critical aspect to being successful in new retail development or the redevelopment of existing centers?
Bobb: Knowing and understanding your customer is absolutely critical. Once you identify your core customer, you can then better position and brand the property to attract the desired tenant and ultimately the customer base. The most challenging park is sticking with the vision or plan for the project. It's a little bit of art and a little bit of science.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
