Jeff Moore is a senior managing director and heads retail services for Southern California at CBRE.
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 "Some of that has been due to changing consumer desires, brands that are outdated, ecommerce disruption, too much space or the stores being too large.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.
New retailers are expanding both as outdated brands shutter and as retail owners adapt to changing tenant needs and seek out more forward-thinking tenants. This has meant big changes in tenant mix and opportunities for new brands. "Shopping center owners are adapting to the changing demands of consumers and are trying to create the right environments that will bring shoppers into their centers and keep them there," says Moore. "The anchor tenants may be different from the past and instead of a department store or big box retailer, the new anchors may be a health club, a signature chef restaurant or a specialty grocer."
All of these changes are driven by new consumer demand for experiential spaces. "Consumers want something new and exciting, and curated retail boutiques and food offerings can create the novelty and interest shoppers cannot get online or at other retail alternatives," says Moore. "For shopping center owners, tenants that cater to these evolving shopper preferences may not always have the financial strength of regional or national chains, but may provide the environment customers want."
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