tants like Amazon’s Alexa or Google Home.
More than a third said they already owned
Pet amenities. More than one-third of
respondents were pet owners, with the
majority having dogs. Dog owners, in turn,
said they expected to pay between $28 and
$34 more per feature per month for perks
like a community dog park, pet-washing station or on-site pet services.—Erika Morphy
2019 Will See More Store Closures
Than the Previous Record Year
The narrative about the retail market has changed. This year, more
investors and industry experts are talking about the revival of retail,
the strong yield-producing opportunities and how owners and
retailers have evolved to new consumer demands. However, the
latest stats do not back up those claims. According to the most
recent retail report from Ten-X Commercial, retail store closures
this year are on track to surpass the previous record in 2017. J.C.
Penney, Bed Bath & Beyond, CVS and Forever 21 are all closing
several store locations.
“When you look at the store closing stats and that we are on pace
for more store closings in 2019 than in 2017, it speaks to a situation
that hasn’t improved yet,”
Commercial. “Both 2017
and 2019 were strong
years for the economy,
and even as you look at
the macro economy today,
all of the data from the
consumer sector shows
that it is still strong. So, for
this to be happening while
consumers are spending,
certainly points to some-
thing that hasn’t stabilized
yet at this point in time.”
The possibility of a
downturn is putting more
pressure on the situation.
Predictions of a recession
hitting next year have increased, and with retail suffering during an
up cycle, it could mean more storms ahead for the market. “If the
overall economy were to down cycle, what will that mean? Have we
gotten all of the store closures out of the way, or will a downturn
exacerbate the situation even further? I think that it is going to hurt
it. It is going to hurt e-retail too,” says Muoio. “If overall consumer
spending went down, it would hurt all of the different venues, but
it is certainly going to hurt brick-and-mortar stores and put more
pressure on them than they have today with the strong tide.”
As for the headlines, it is true that retail is evolving, but that
evolution has not offset the quick dominance of e-commerce.
“There is a degree to which retail is doing well, like e-commerce
retailers opening brick-and-mortar, and
that is all true, but the reality is that the
percentage of retail sales that is going
through the e-retail channels is going to
increase at the expense of brick-and-mor-
tar,” says Muoio.
In fact, as brick-and-mortar evolves,
e-commerce has been close behind. “It
started with commodity items, but it then
shifted toward clothes with easy returns and
sizing algorithms,” says Muoio. Now there is
online grocery shopping and banking.
There is no real part of retail spending now
that isn’t under assault from competitor
pressures from e-retail.”—Kelsi Maree Borland
5G Will Open Up CRE Investment
The new technologies we read about only a few years ago are here.
The internet of things, streaming and 5G, artificial intelligence,
autonomous vehicles and e-commerce services are all coming in
fast and furious. And they promise to touch the lives of many
With the development of autonomous vehicles, internet of
things devices and high-resolution content for artificial intelligence and augmented
reality, Pacer ETF analysts predict that total
global internet traffic is
expected to reach 2. 3
zettabytes of data by
2020, which is nearly
doubled from 1. 2
zettabytes in 2016.
“All of the new technologies and services like
5G internet speeds and
streaming service capabilities, internet of things,
ecommerce and artificial
intelligence use up massive amounts of computing power and eat up
space on servers,” says
The future of 5G depends on a data and technology providers’
ability to offer the necessary infrastructure to enable this growth.
For this to happen, the real estate industry must step up. For
instance, industrial REITs that are integrated into e-commerce
distribution, logistic networks and self-storage facilities will play key
roles in the success of data expansion.
Cushman & Wakefield has
appointed John Owendoff
to managing director of
its Washington DC metro
region capital markets team.
Previously, Owendoff served as
managing director at HFF.