The title of this article is not by accident. We are in a new world where space is being soaked up by every business conceivable. Once brick and mortar locations are now battling with each other on the internet. Companies are fighting for your attention and holding your interest just long enough to purchase their product. Online sales are increasing. Office workers can now work from their own homes. Rental spaces are shrinking in size as retailers are trying to figure out how it all fits together. In Searcy alone, along the main retail corridors, there are forty-one vacancies, and that is not counting the secondary service areas. What does this all mean? In real estate, we call it an adjustment period, otherwise known as a recession by standard terms. Although it may seem bad at first, it isn't. In the real estate cycle, hyper supply comes from overbuilding the market. In this case, it came about because people found another way to purchase, and savvy retailers were happy to oblige. It is a new error of Space Wars.
Many retailers were over-leveraged as online shopping became a household word. The bright side is, the market is already adjusting. By 2020 we should be headed into recovery. Landlords are finding other creative ways of filling space. Many new concepts are popping up, absorbing much of the big-box lease space. These are retailers such as TJ Maxx, Bargain Hunt, Ollie's, Tuesday Morning, Dirt Cheap, and many more. These types of retailers are successful because they are buying overruns and liquidations. If you want the deals, you must go to the locations and rummage around with everyone else. That's NOT me, but I am happy to lease space to them. Also filling such areas are the five (Fs), Furniture, Fitness, Fun, Food, and Physicians.
The market is and will continue to recover. Vacancies will fill up as things get back to a very new and different normal. In the meantime, there are many deals out there for investors. Savvy investors don't just buy a property in hopes of a tenant coming along to fill up their space. They have an idea before they buy. They are aware of the cycles in the market and take full advantage of them. As far as business is concerned, there has never been a better time to invest in new ideas on the horizon. Opportunity is abundant, but you must first spend the time it takes to become aware of what they are. Maybe it is just a better way of doing business. Perhaps it is starting a new business. Looking forward, we will begin a mastermind for those entrepreneurs who want to invest the time and money into getting in front of the rest of the masses. You can never succeed past what you are willing to invest in yourself. If you are interested, contact me at the email below to find out more information and reserve your seat at the table.
Stuart J. Dalrymple
Certified Commercial Investment Member | Business Coach | Consultant
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