Search
 

Sky-High Rents Cause Retailers to Reevaluate

LAS VEGAS—In a recent video interview, David Zoba, chairman of global retail leasing at JLL, says that retailers are beginning to question if they can make money at some urban port city locations.

By Natalie Dolce | nataliedolce | | Updated on June 15, 2016
David Zoba, chairman of global retail leasing at JLL. David Zoba, chairman of global retail leasing at JLL.
LAS VEGAS—“Everybody is taking technology to the next level.” That quote comes from David Zoba , chairman of global retail leasing at JLL, when talking about exhibitors at the recent ICSC RECon event here in Las Vegas. “We are seeing lots of energy and all the booths have stepped up their game.” One difference he noticed at this year’s event was all the ancillary businesses that have come back. “You will always have your brokers and landlords and brokers, but the ancillary people are energized and back,” he told Jesse Tron , VP of communications at ICSC, during a recent video interview. On the retail front, he pointed out that everybody for a while was trying to acquire the same urban assets in the same port cities. But a couple shifts are happening, he explains. “Those assets have gotten priced so high, and when translated into high rents for retailers, it makes the retailer question if they can make money at that location.” It is hard to justify purely on sales, he continues. “Some retailers are looking back at where their customers live. Suburbs haven’t gone away. A lot of retailers look and want an urban store to showcase a product, but they also want a convenient store in the suburbs where they can make money. Not too many make money on 5 th Avenue.” To hear more from Zoba on the subject and how retailers are being more adaptive to their footprint, check out the full video here.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.