As we look ahead at 2021, while still in the midst of a global pandemic, it is important to take stock in how the retail community has been forced to rethink, and often reinvent, their business operations, their physical spaces and ultimately their customer relationships.  In light of this, what are the key retail trends for commercial real estate professionals to consider that will shape the market going forward?:

1.  The Strong Are Surviving: Retailers who were expanding prior to, and during, the COVID pandemic, are continuing to add new locations in the market.  This is directly attributable to the financial health of these companies going into the pandemic, which aided their efforts to expand their market shares, ongoing.  Some examples, who are TRUE clients, would include: Old Navy, Athleta, Panera Bread, Chick-fil-A, Choice Pet; all with strong, loyal customer bases.

2.  Technology Reinvention: Retailers who have incorporated technology into their operations will continue to fare better than those who have not.  This trend makes sense, as it gives retailers new potential options for engaging with their target audiences and can lead to greater convenience and higher customer satisfaction. Here, digital integration can take the form of: making e-commerce platforms seamless with existing ‘bricks and mortar’ operations, restaurant apps that facilitate mobile orders, curbside pick-up options, and more frequent digital interactions with key customers, in general.

3.  “Shopping Anchors”: Well-tenanted shopping centers in strong retail markets continue to get the most activity (i.e. tenant interest), when it comes to smaller spaces.  Here, many tenants that are expressing interest in these locales, are service-oriented and/or food operators.  To be sure, within this ‘anchoring trend’ there seems to be a flight to quality in regional markets, where tenants are looking to relocate into the prime shopping centers, where relative foot traffic has remained strong even during the pandemic.

4.  Small Can Mean Nimble: Junior anchor and big box expansions continues to lag small retailer activity.  Here, we expect to see more consolidation in this category as e-commerce continues to grow double-digit percentages, while bricks and mortar sales are comping at single digit percentages.  Who knows how enduring this trend will be once the pandemic abates, but clearly the market dynamic has shifted, and retailers need to plan accordingly.

5.  Back Half Boom!: We assume that retail sales will pick up significantly in the 3rd and 4th quarters of 2021, as COVID cases decrease with the onset of greater vaccine distribution.  Further, because retail strength is often coincident with a strong housing market, we also can expect a heavy influx of home buyers from NYC metro markets, relocating to more distant suburbs, and resulting in a retail sales boost in the process.

FEBRUARY 12, 2021 – TRUE Commercial Real Estate announced the lease signings of three, new Choice Pet locations, as the firm continues to expand its retail footprint across Connecticut and the Tri-State region.

Working directly with Choice Pet, TRUE brokers Dominick Musilli and Richard Schnider assisted Choice Pet with the securing of these properties by proactively pursuing higher-performing Pet Valu locations in targeted markets.  By leveraging TRUE’s long-standing relationships with top landlords, Choice Pet was able to beat their competitors to the punch and secured these key locations, before they were readily available. TRUE partners Jason Wuchiski and Tyler Lyman represented landlords in Southbury and Old Saybrook, Connecticut, respectively. Specifically, these new Choice Pet Connecticut stores will be located in Copps Hill Plaza in Ridgefield, Southbury Plaza in Southbury, and at Max’s Place in Old Saybrook.

“Choice Pet had a quick opportunity to take over former Pet Valu locations in these outstanding markets. Our analysis carefully reviewed and considered a number of closed pet stores with our customer, and they ultimately decided on these prime locations, due to their fit with their overall strategic goals and objectives” said Dominick Musilli. “We are very confident that these locations will provide great returns for Choice Pet, and will lead to additional opportunities in the near future.”

Importantly, as the companion animal pet marketplace has grown greatly during the pandemic, these newly signed leases reflect that market trend, and will strategically expand Choice Pet’s reach in key tri-state markets, as it grows its store count to sixteen locations throughout Connecticut (11 stores), New York (4 stores) and New Jersey (1 store).

It is often said that the keys to success in any business can be derived from a thoughtful review of the essential practices that have led to success in the past.  Simple right?

Today, as we begin to emerge from the grips of a global pandemic, there has never been a time when this has been more true.  To be sure, most businesses, and specifically key retail markets, have been dramatically altered – some forever.   Unfortunately, while many businesses have not survived, some have gone into an unknown period of hibernation, and still others have altered their business models to adapt to changing pandemic protocols.  An unsettling time for so many, but at the same time an opportunity to reflect on where commercial real estate markets might be headed, and importantly how CRE firms can adapt.  In this spirit, and looking ahead to economic “re-openings” around the nation, the following represents some bedrock ‘pillars for success’ in commercial real estate to help guide the way forward:

1.  Leverage Deep Market Knowledge: It takes years to build a deep knowledge of a trading area, and thus it is essential to leverage it as a strategic asset, which allows for the implementation of bespoke market optimization plans for clients, and also the ability to roll out new retail locations that maximize sales and profits.  In a nutshell, deep market knowledge enables commercial real estate firms to better partner with their clients in a consultative manner; creating value, building trust and planning an approach that is tailored to the exact needs each client.

2.  Your Network is Everything:  Another key asset that commercial real estate businesses need to focus on is maximizing their firm’s network of retailers and brokers to effectively and strategically lease and/or sell exclusive listing in a trading area.  Like a garden, your network needs to be tended regularly in order for it to bear fruit.  By peeling off 10% more time per week to connect, reconnect or build new aspects of you network, your firm can unlock a key growth driver that is often overlooked.

3.  Become an Essential Resource:  Being “essential” to your clients is all about creating value – plain and simple.  To become their “Go To” resource in any trading area, commercial real estate firms need to examine how they are creating value across all of their client interactions and communications.  Ask yourself: Are we providing insights that are relevant vs. your competitors?  Are we offering communications and technology that makes it easier for clients to engage with your firm?  Does your firm express a point of view and take a “consultative approach” to the business of your clients?  By answering these questions, any commercial real estate firm can begin their ‘value creation’ journey, and do so in a way that is rewards existing customers, welcomes new customers and attracts prospects, like never before.

Author: The Pillars of Commercial Real Estate Success in 2021Dominick Musilli, Managing Partner

APRIL 18, 2019 – True Commercial announces the opening of two new Family Dollar locations. Family Dollar has opened two new locations in CT starting with the prominent center in Derby located at 26 Pershing Drive occupying a total of 8,750 SF.  They also opened their doors at 1805 North Main Street in Waterbury occupying 10,769 SF.

“Family Dollar continues to look at new store opportunities in the Bridgeport, New Haven, Waterbury and Hartford market areas.” says Joseph Baranowski of TRUE Commercial

TRUE Broker Joseph Baranowski represented Family Dollar in both transactions. Dollar Tree, The Parent Company, now operates more than 15,000 stores across 48 states.

APRIL 18, 2022 – TRUE Commercial Real estate announces ULTA Beauty will be leasing 10,941 square feet of the 30,543 SF former Babies R Us space on New Britain Avenue in West Hartford. Babies R Us closed in 2018 and the property owners are looking to reinvigorate, and bring back to life what was a powerful shopping center.

“Newington West Farms Center is centrally located in one of the strongest retail markets in Connecticut.  Ulta will be joining Bed Bath and Beyond, and DSW among other retailers in the WestFarms Mall across the street and the rest of Corbin’s Corner”, said Adam Zeiberg, partner of TRUE Commercial

TRUE broker Adam Zeiberg represented ULTA Beauty in the transaction and Lorraine Tartaglia represented ownership.  The West Hartford store will be ULTA Beauty’s fifth in the area. Existing locations are in Avon, Wethersfield, Plainville, and Manchester (Buckland Hills).

APRIL 18, 2019 – TRUE Commercial Real Estate announces the sale of 1260 Winsted Road in Torrington, Connecticut.  The property houses a two-tenant, 8,600 square foot building on one acre with Kindercare and Founders Insurance.  Brokers Dominick Musilli and Jeffrey Kaplan were the sole broker in the transaction.

“The Torrington opportunity was the right fit for the buyer.  He was looking for an aggressive cap rate play with a building that had long-term tenants in place”, said Musilli.  “I’m glad we were able to close the deal at the very end of the buyer’s 1031 schedule.”

TRUE Commercial’s investment sale activities have increased dramatically over the past two years.  It’s a major growth engine for the company over the next few years.

APRIL 18, 2019 – TRUE Commercial Real Estate announces opening of two new stores in Wilton River Park Shopping Center making these their fifth and sixth completed deals in the center with KIMCO Realty.  Great Clips and SoBol will now be joining the retail heart of the town of Wilton.  Great Clips will be occupying 921 square feet while SoBol will occupy 903 square feet.  TRUE Brokers Dominick Musilli and Richard Schnider represented KIMCO in the transactions.

“The addition of Great Clips and SoBol to the River Park Shopping Center further makes this center the go-to place for daily needs in Wilton and surrounding towns’ said Richard Schnider.  “We fully expect the residents of the town to embrace these tenants because they are quality operators in their space.”

Steve Patten of The Proto Group represented Great Clips in the transaction while TRUE were the sole brokers of the SoBol deal.

APRIL 18, 2019 – True Commercial Real Estate announces that they successfully completed a transaction with Heartland Dental in the Quarry Walk in Oxford, Connecticut.  The 3,000 square foot dental facility will have co-tenants such as Market 32, Ace Hardware, Dollar Tree and several other high quality tenants.  TRUE Brokers Ryan Stranko and Tyler Lyman represented Heartland Dental, who will go under the operating name of Swan Lake Dental Care.

“Quarry Walk was the optimal place for our dental client.  It had a supermarket anchor with numerous other daily needs tenants.” said Ryan Stranko.  “We know this will be an outstanding long-term play for Swan Lake Dental Care.”

Heartland Dental is a leading dental support organization with over 1,000 supported dental offices in 37 States.

APRIL 18, 2019 – True Commercial Real Estate lands a tenant representation assignment with a franchisee of Moe’s Southwest Grill.  Savin Foods selected Richard Schnider to assist with the rollout in Connecticut (west of the Connecticut River) and Westchester County, New York.  The requirement will be 2,400 to 3,000 sq. ft. in strong community centers and/or regional centers with great visibility and strong co-tenancy.

“Savin Foods is a very successful operator of food franchises throughout Connecticut and Massachusetts and I am thrilled they have selected me to assist them with their rollout.” says Schnider of True Commercial Real Estate.

TRUE brokers Richard Schnider and Dominick Musilli represent Moe’s as they continue to open locations across Connecticut and New York. Moe’s Southwest Grill’s success in the marker bodes well for more openings over the next several years.

APRIL 18, 2019 – TRUE Commercial Real Estate announces ULTA Salon, Cosmetics & Fragrance, Inc. continues expanding within CT with a new 10,941 SF location in Newington Westfarms Center which is set to open in Spring, 2020.

“West Hartford was identified as a void in Connecticut, and Newington Westfarms Center was selected due to its central location within this market.” said Adam Zeiberg, Partner of TRUE Commercial Real Estate.

Adam Zeiberg represents ULTA in Connecticut, Westchester and Rockland Counties, NY. ULTA is on the rise in Connecticut and is still actively seeking locations.