Daily needs brick-and-mortar retail in urban markets is still dominating retail investment activity. The demand for those properties, however, is so high that opportunities in urban markets are limited. Investors looking to place capital—especially 1031 exchange buyers—are now looking in adjacent suburban markets for opportunities. Kevin Fryman of Hanley Investment Group recently brokered such a deal between a 1031 exchange buyer and a private investor of Seco Canyon Village in Santa Clarita. The deal highlights the emerging trend and the continued demand for daily needs retail properties, especially as the industry adjusts to the Amazon-Whole Foods merger. To find out more about the state of daily needs retail, why investors are looking into suburban markets, and how the new ecommerce model is fitting in, we sat down with Fryman for an exclusive interview.

GlobeSt.com: Neighborhood retail centers dominated the retail market activity last year. Have you seen the same demand for this niche this year?

Kevin Fryman: Daily needs, internet-resistant shopping centers are still very attractive to both private and institutional investors. These centers include tenants that are not in direct competition with Amazon like gyms, quick and casual serve and sit-down restaurants, cell phone and tax preparation services, urgent care centers, and dental, optometrist, hair and nail services. They offer products, services or experiences that you can't get online.