Property Owners Must Integrate Experience-Oriented Tenants

Jeff Moore, a senior managing director at CBRE.

SAN DIEGO—“For shopping center developers, we are seeing a strong push toward “Placemaking”—the drive to build and curate retail destinations.” That is according to Jeff Moore , a CBRE senior managing director and head of Retail Services for Southern California. He tells GlobeSt.com that landlords and retailers must now convince consumers they should shop in-store. “There are three Placemaking Strategies including ‘diversification.’ Here, owners or developers need to offer a more diversified tenant and product mix than before. Traditionally, landlords relied heavily on apparel and department stores, yet those are low-growth and high-e-commerce penetration categories.” Now, he says, property owners must integrate more experience-oriented tenants that are less vulnerable to online growth such as restaurants, entertainment and services. “Consumers are also moving away from large national chains and are drawn to craft and independent, local stores, offering products that are more unique. This does pose financial risks landlords are looking to mitigate.” The second strategy he points to is “experience” and is the main advantage brick and mortar have over online stores, says Moore. “Landlords are investing in creating experiences through marketing, events and experience-orientated tenants.  They are also integrating amenities and even concierge services into their projects.  Great examples of this are Caruso Affiliated projects like the Americana in Glendale and The Grove in LA.” The third strategy is focused on “convenience,” he says, which is the number one reason consumers shop online, according to Moore. “Developers and landlords are investing in making shopping centers more convenient by including digital technologies that enable quick and simple parking as well as way-finding-maps in the malls. Companies are utilizing technology and experience driven angles to create foot traffic. Most now offer a ‘tech brand’ with apps, incentives and cultural influences through digital platforms. Subscription boxes are growing in popularity as well as interactive technology that is usable in stores such as self-check-out, interactive mirrors and other technology with the purpose of creating a greater sense of engagement. Companies are also including additional ‘perks’ for coming to their stores such as free fitness classes, pet adoption days, tutorials, educational classes and the like.”