Lenders Need to Change the Way the Value Retail

Melina Cordero

Lenders need to change the way that they valuate retail properties, particularly malls, to adapt to the changing retail landscape. A recent CBRE survey looked at how retailers will operate in 2030, and found that integration of online and brick-and-mortar platforms and tailored customer experiences would be crucial to the success of retailers in the year 2030—nearly a decade away. The report named eight major trends in retail that highlight the changing market, and among them is pop-up and other alternative leases.

As pop-up leases—short-term retail leases usually focused on hyper trendy and experience-forward brands—become more common, lenders and landlords will need to shift the way that retail is valuated. “It has to, especially in retail segments like malls,” Melina Cordero, head of retail research for the Americas at CBRE and one of the authors of the report, tells GlobeSt.com. “There needs to be a fundamental shift in how we value malls and how we measure their performance.”