Features
City is at its most affordable level in a decade. Tenants have a broader selection, and landlords are extending enticing conces - sions.” This sentiment suggests that the current era could present opportunities for rejuvenating cities, emphasizing diversity and adaptability, and steering away from traditional monotony. Simultaneously, shopping trends are increasingly favor - ing e-commerce. Data from an AlixPartners survey indicates that nearly half of the consumers have permanently altered their buying behaviors due to the pandemic. E-commerce sales could hit a staggering $6.3 trillion by the end of 2023, according to Forbes, a business magazine. Moreover, 80% of consumers now anticipate same-day deliveries, with 63% viewing delivery speed as a vital determinant in their purchas -
pondering similar adaptations. However, Rosinsky raises a per - tinent question other cities will inevitably face: “Implementing this rezoning plan is pivotal for the future of the Midtown Manhattan Business District. But will these new residences pre - dominantly be luxury condos, or will there be a focus on affordable housing?” With its rapid technological advancements, the digital age has ushered in a new paradigm for shopping, making adaptabil - ity the watchword for brick-and- mortar stores. As the rhythm of consumer habits changes, certain pillars of the retail world, such as supermarket-anchored real estate, have demonstrated their staying power. This unfolding scenario presents not just chal - lenges but also opportunities. It’s a testament to the resilience
These spaces, especially those anchored by supermarkets, have become more than just shopping destinations; they’ve evolved into community cornerstones.
ing choices. Despite these shifts, the retail sector remains surprisingly resilient. Omnichannel and unified commerce approaches are gaining prominence, with many consumers still valuing the tactile experience of in-person shopping, as seen in venues like grocery stores. The Rise of Empty Spaces and Hybrid Places Skylines across U.S. cities narrate a tale: vast stretches of vacant offices, remnants of the pandemic’s upheaval. Yet, a fresh urban concept emerges from this desolation — “hybrid places.” Highlighted by McKinsey, these mixed- use areas seamlessly combine work, residence and retail. Flourishing even before the pandemic, they withstood the pandemic’s turbulence better than their office-dominat - ed peers, and they seem set to grow in popularity in the coming years. This scenario underscores the pressing need for urban transformation. Take, for instance, the vision of New York City’s Mayor Eric Adams. He advocates a daring shift, aiming to rezone 42 blocks in Midtown South Manhattan, converting deserted offices into homes. While bureaucrat - ic challenges loom, his ambitious vision, targeting hous - ing for 40,000 New Yorkers, serves as an example for cities
and innovation inherent in the retail sector and a remind - er that some fundamentals remain constant even amidst change. The brick-and-mortar retail landscape has dramat - ically evolved amid shifting consumer behaviors and increased digitization. While a Harvard Business Review article notes 60% of consumers are frequenting stores less than in pre-pandemic times, recent data by Usacast, a data provider, reflects a 15% year-on-year increase in Q2 2023 foot traffic. This resurgence, however, is not uniform - ly felt. By May 2023, shopping centers added 2.1 million square feet of occupied space, while malls saw a reduc - tion of 0.15 million square feet. Moreover, restaurant foot traffic grew by 18% year-on-year in March, while grocery stores saw high visitor numbers. Survival in this volatile environment has sparked a range of strategies among retailers. Some are doubling down on creating compelling in-store experiences to attract consumers, while others are building robust online platforms. Retailers and real estate owners alike realize the need for a recalibrated strategy that could include multi-purpose shopping centers, customized tenant mixes and new leasing models that adapt to emerging trends.
Vision Magazine 65
October/November 2023
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