Commercial Real Estate, Capital, Insurance, Leasing & Management

Franklin Street: How to Navigate Current Retail Challenges and Future Opportunities

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With Franklin Street’s CMO Monetha Cobb, and Greg Matus, Senior Vice President of Investment Sales

Key Challenges in Retail

The primary hurdle in the retail sector is the fluctuating market and rising interest rates, which have significantly slowed down transactions. Investors and developers are finding it tougher to secure deals as banks enforce stricter lending criteria. Despite a slight uptick in activity, recent interest rate hikes have again dampened momentum. Uncertainty surrounding upcoming elections adds another layer of complexity.

The investment landscape shows a mixed picture, says Matus. Multi-tenant retail sales are progressing. However, interest in single-tenant buildings has slowed down considerably due to high interest rates. On the occupier side, demand persists, especially in certain thriving markets. The scarcity of supply has heightened the importance of strategic partnerships and innovative approaches to mitigate risk.

Mixed-Use Developments: A Strategic Focus

Franklin Street has pivoted its focus toward mixed-use developments, recognizing the evolving needs of modern consumers. These projects require a comprehensive understanding of various asset classes and how they interplay. The company has made significant strides in repositioning lifestyle centers and open-air centers from the 2000s, adapting them to contemporary consumer preferences for gathering spaces and entertainment options.

The Role of Data and Talent

Information plays a crucial role in navigating the retail landscape. Access to real-time data allows retailers to make informed decisions, quickly adapt to market changes, and optimize operations. Additionally, identifying and leveraging the right talent is vital. Franklin Street has expanded its team to enhance its capability in serving clients and executing deals effectively.

View here the full interview from Shopping Center Business.

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