The Pop-Up Office
Retail was suffering, even before the pandemic hit. A record 9,800 stores closed in 2019 across the country, with an estimated 25,000 more this year. Some forecasts indicate that retail vacancy rates in California may not recover to pre-pandemic levels until 2026.
In response to growing numbers of “dead retail” spaces over the last decade, retail and mixed-use landlords have had to change quickly. Adapting vacant spaces in creative ways has become the norm. But most of those new tenants have also been struggling in the pandemic: restaurants, bars, services, fitness, telecom carriers.
Mixed-use developments in particular have grown rapidly over the last decade. And due to increasing interest from municipalities across the Southland to improve walkability and strengthen local neighborhoods, developers have been required to create retail opportunities at the street level of both office buildings and residential mixed-use developments. As more mixed-use comes on-line while retail vacancies are on the rise, how to adapt?
The good news is that the workplace is not going away. In fact, with the need to de-densify the traditional office, coupled with the challenges many people have with work from home arrangements, there will soon be an urgent need to quickly find more adequate workplaces. Many of these “dead retail” spaces are well-positioned to pick up the slack, even if temporarily.
There is value here for those who are willing to think outside the box. With a successful history of partnering alongside risk-takers, Wolcott has the expertise and capabilities to ensure that you emerge from this season stronger and more adaptable than ever.