ORLANDO, Fla. --- All economic cycles help generate evolutionary changes in the way people buy and sell things and the current national economic recession may be responsible for more than its share, according to one longtime retail analyst.
John Crossman, president of Crossman & Company, one of the largest third-party retail leasing and management firms in the Southeast, said that despite a number of new trends, the most successful retailers today embrace core conservative values.
“Look at a chain retailer like Publix,” Crossman said. “Publix stock is up. They are doing deals---opening new stores and redeveloping old ones in down a market when some of their competitors are closing stores. They have weathered the storm and they will grow their market share because they developed a classic conservative strategy to the recession,” Crossman said.
Other retailers are taking a more progressive approach to practical necessities.
“One of the hottest trends in retail leasing right now is short-term leases,” Crossman said.
Historically, retail spaces have been leased in five and 10-year terms.
Historically, retail spaces have been leased in five and 10-year terms.
“Recently, we’ve seen three-year, one-year, and even month-to-month lease terms, and ‘temporary tenant’ who need space for 30 days for a big event or a seasonal sales campaign.” Crossman said. “We’re seeing a lot of that for the upcoming holiday season.”
Crossman said such short-term tenants create activity, traffic and energy at a retail center or mall, and that helps other tenants.
But some property owners aren’t so sure.
“Some people see the negative, and assume that more tenant rollover will shadow a retail center’s image,” Crossman said, “but that’s a misnomer. Fifth Avenue in New York has plenty of rollover tenants, and Fifth Avenue is still the number one retail destination in the world,” he said.
For more information, contact:
John Crossman, CCIM, President, Crossman & Company, 407-581-6218, jcrossman@crossmanco.com
Justin Greider, Senior Associate, Crossman & Company/ICSC Florida Next Generation Chair, 407-581- 6225; jgreider@crossmanco.com
Larry Vershel, Larry Vershel Communications, 407-644-4142, lvershelco@aol.com
About Crossman & Company:
Crossman & Company is one of the largest third-party retail leasing and management companies in the Southeast with over 16 million square feet under leasing and/or management. Founded in Orlando in 1990, Crossman & Company is a full service commercial real estate firm that advises its clients in leasing, management, development and investment sales of retail and office properties and serves clients including Publix Super Markets, Inc., Lake Nona, PREIT, and LaSalle Investment Management. Please visit http://www.crossmanco.com/, or call 407-423-5400 for more information.
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