Retail owners and operators are continuing to look towards entertainment and restaurant tenants to fill spaces left vacant by failing traditional retailers. According to the National Real Estate Investor, the logic behind this is that while traditional retailers may be taken out by the Amazon’s of the world, movie theaters and restaurants are more immune to online competition because they offer an experience that can’t be duplicated online.
While these non-traditional retailers offer more protection from online competitors, landlords should not expect a miraculous recovery. Non-traditional retail is simply not expanding enough to fill the holes of struggling retail centers, and even so, would not move to centers that are beyond saving. It appears that at best, a safe, non-traditional retail tenant can make a mediocre property stronger, and a good property great.
To read the full article from the National Real Estate Investor, click here.