Fashion is outpacing food and restaurant leasing in the Greater Los Angeles area this year. According to a new report from CBRE, fashion tenants accounted for 15 million square feet in leasing activity in the first half of the year, while food service tenants accounted for 10 million square feet of leasing activity. Food service has quickly become the most coveted and active tenant in the retail niche, but it seems that fashion retailers have also adapted to tenant needs as well.
"The fashion industry has been disrupted. There are many examples of fashion retailers who have gone out of business," Jeff Moore of CBRE tells GlobeSt.com. "Some of that has been due to changing consumer desires, brands that are outdated, ecommerce disruption, too much space or the stores being too large. Those failures get big headlines."
However, there is also a new generation of fashion retailers that do understand consumer needs, and those retailers are thriving and driving leasing activity. "What is also happening is the emergence of new fashion retailers; e-tailers now opening brick-and-mortar locations, higher-end product that consumers want to try on and experience and customer service, as well as discount fashion retailers that provide quality product along with selection and a strong value proposition," says Moore.
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