A newly minted example of the trend toward F&B and entertainment components is the Lawrence Group's City Foundry STL mixed-use redevelopment of the historic Century Electric Foundry Complex in St. Louis. CBRE said Wednesday that the project's first phase will be anchored by a 10-screen Alamo Drafthouse Cinema, a Texas-based chain that combines scratch meals and craft beers with current and cult-favorite movies; Punch Bowl Social, an award-winning “eatertainment” concept that combines social gaming with F&B offerings; Fassler Hall, a German-inspired beer hall and rooftop beer garden operated by pub-and-restaurant owner McNellie's Group; and the Food Hall at City Foundry ST, said to be the first of its kind in the city. A CBRE team led by SVP Andrew Turf is handling the retail leasing.

At existing properties, meanwhile, investors are taking steps to improve the customer experience. Especially for B-grade centers that need to close that performance gap, this can mean adding nontraditional tenants such as entertainment uses and nonretail tenants such as fitness and healthcare operators. As the gap between A and B or C properties continues to widen, CBRE expects that we'll see more opportunities arise for investors who are willing to redevelop, reposition and re-lease certain struggling centers

Additionally, CBRE says, retail landlords will seek to create unique environments at their centers by collaborating with their tenants. This collaboration can take the form of setting aside spaces for pop-up shops that might eventually become permanent tenants, sharing data with retailers to improve marketing or taking equity stakes in start-up tenants in exchange for defraying their occupancy costs.

“The US retail industry is evolving rapidly, but it isn't receding,” says Todd Caruso, senior managing director at CBRE. “Headlines likely will continue to focus on the fallout. But what gets less fanfare, though it is more significant, is the growth of discounters, new concepts and international retailers, as well as successful transitions by many retailers to become truly omnichannel operations.”