Jon Hipp
As we move forward into 2020, retailers have to keep up with trends and new ideas to continually draw consumers in and spend money. These new, creative solutions are not limited to just one sector as we are seeing big-box stores, banks, etc. come up with different tactics to employ. In the future more and more retail locations will continue expanding off this and keep coming up with interesting ways to drive in foot traffic.
In the big box sector, one example is the retailer Restoration Hardware, or as it is called now, RH. Known for selling furniture, recently the brand has decided to incorporate a dining space into their stores. In essence, it is creating a hospitality space inside of its retail location. This restaurant space is usually a main feature, not located in the back or off to a side, such as rooftop complete with a bar. This type of expansion could keep customers in the store longer allowing them to look around longer and potentially sway them into a purchase.
Another sector embracing this trend is banks. The setup in a typical branch consists of tellers along with a few offices, but today we can see this changing. Layouts are becoming more open, less teller space is being set up and more offices being incorporated into the space for consultations.
Customers will come in and if they need to make a deposit or withdrawal can use an atm or if they prefer, they can wait to meet with an individual worker . Some banks are even taking this a step further. Capital One has developed the concept of a Capital One Café, allowing people with a Capital One account to come in and work, relax, or hangout similar to a coffee shop layout.
The point of all this is to add value to the store and try and get customers to spend as much time as possible on location. Going forward this is a trend to watch for in other big box and bank locations, as well as possibly other sectors embracing these tactics. As the numbers grow, these properties will become more valuable for investors and buyers, placing a premium on them when they are added to the market.
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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.
