JLL Report: Retail going borderless
Atlanta — A just-released report by Jones Lang LaSalle Retail found that three trends — in retail investing, retail expansion and e-commerce — are making national borders increasingly irrelevant to the retail industry. According to Jones Lang LaSalle’s “Global Capital Flows,” retail investment captured 25% of the total global market share of real estate investment in first quarter 2013. Investors continue to press ahead in traditional mature markets such as the United States, Western Europe, Australia, Japan, Hong Kong and Singapore to emerging markets such as China, Brazil, Russia and Turkey, the report found.
With regard to expansion, markets welcoming globalized retailers include China, India, Brazil and Russia. South Africa has recently begun to grow in popularity with expansion-minded retailers. Challenges include adapting stores to other cultures and localities, said JLL, and globalizing retailers to watch include Tommy Bahama and Ralph Lauren as well as Uniqlo and Zara.
And, finally, the report analyzed e-commerce clicks around the world and suggested that online activity will continue to erode brick-and-mortar sales. JLL cited a recent Deloitte study that forecast brick-and-mortar retail sales would decline from 91% to 63%, as clicks make up ground on bricks. A recent PwC report, according to JLL, indicated that Chinese consumers shop online more than consumers in any other country. About 40% of retail logistics activity in China involves e-commerce. Observers note growing e-commerce trends in London and Australia, as more and more shoppers buy online and pick up at the store.
Report: Retail rent growth set to return
Atlanta — Jones Lang LaSalle Retail Group said that vacancy rates should fall far enough to enable some landlords in every U.S. market to demand slightly higher rents — at some point over the next six months.
“We’re not quite there yet, but by the end of this year virtually all markets should see rent growth,” said Greg Maloney, president and CEO of Jones Lang LaSalle Retail Group. “Quite a few markets are already posting year-over-year growth, including Miami, Fort Lauderdale, Dallas, New York, Tampa, San Francisco, Hawaii, Los Angeles and Boston.”
Most of the rent-growth metros are also enjoying robust local economies, according to JLL.
While national averages show rents still declining year over year, rents overall rose 0.3% in the second quarter of this year compared to the first quarter.
Strip and neighborhood shopping centers have the highest vacancy rate among property types at 10.4%. However that number represents an 11% year-over-year decline, the first since 2009.
Power centers posted the largest vacancy decline, falling 60 basis points year-over-year to 5.9%.
Ulta Beauty to open at Cumberland Mall in the fall
Vineland, N.J. — Ulta Beauty will open a new superstore this fall at Cumberland Mall in Vineland, N.J. The 10,500-sq.-ft. store will feature a full-service salon as part of its offerings.
Cumberland Mall is anchored by Boscov’s, Marshalls, J.C. Penney, Burlington Coat Factory, Michaels, Old Navy and Bed Bath & Beyond.