We are entering “the incredible shrinking store format” period. Thanks to the increasing popularity of e-commerce and changing tastes of shoppers, retailers are shuttering low-performing outlets and reducing real estate footprints.
Target is expanding in densely populated areas with smaller-format stores, typically 12,000 – 40,000 square feet. These smaller-format stores are a far cry from the retail company's suburban, full-size, 130,000 square-foot, centers. Target is not alone in the size reduction, Walmart, Kohl's, and Nordstrom are also experimenting with smaller formats.
It's too soon to understand the full effect of shrinking-stores impact on net-lease space. There is, however, a great deal to like about the trend, so far.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
