The Demand for New Retail Development

The scarcity of new retail developments over the past decade has created a pent-up demand for fresh projects.

LAS VEGAS—As 2024 has already shown, the retail sector is showcasing robust resilience and growth, marking a stark departure from the challenges of the past decade. According to Josh Poag, the President and CEO of Poag Development Group, the momentum in retail is palpable, with demand for new developments reaching unprecedented levels.

In recent years, he tells GlobeSt.com, the retail landscape has been nothing short of dynamic. “Retail has been on a tear for the past few years and, with its stability and growth, 2024 has started off exceptionally positive.”

Poag highlights a significant trend driving this resurgence: the scarcity of new retail developments over the past decade has created a pent-up demand for fresh projects. Consequently, rents are on an upward trajectory while vacancy rates continue to plummet, translating into substantial income growth for existing retail establishments.

This isn’t just a momentary blip, Poag says. “I believe this is the healthiest retail landscape we’ve seen since 2006 or 2007.”

For Poag Development Group, this upward trend presents opportunities for expansion and innovation. Their latest endeavor, Avenue One in Omaha, represents their first ground-up development in years, fueled by robust tenant demand and a promising market outlook.

“In addition, we see a lot of potential in redevelopment of Class B and C malls nationwide,” he says. “From Memphis and Michigan to Florida and California, we are noticing struggling enclosed malls trying to figure out their next move.”

Poag also mentions the importance of adaptive redevelopment strategies in breathing new life into struggling retail spaces. “With our development and visioning expertise, we feel we can help navigate those changes and next steps in such a fast-paced and evolving retail environment,” he says.

Within these developments, the evolution of lifestyle centers emerges as a key focal point. Poag emphasizes the significance of consumer experience in shaping the future of retail destinations. “This philosophy remains true today, but the experience the consumer wants continues to evolve,” he says. “We focus on the details from sustainability practices and intentional gathering spaces to simply how stylish and clean the public bathrooms can be.”

According to Poag, it is impressive to see the potential to transform shopping centers into vibrant hubs of activity. By prioritizing comfort, convenience, and engagement, retail destinations are being reimagined as the best gathering places for visitors, he says.

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