Private Services, Restaurants driving success, shares Matt Hammond commenting on a recent Moody Analytics report.
By Paul Bergeron | November, 22 2022 | As published by GlobeSt.com
A more permanent shift from goods to services is “on the table,” according to a new report from Moody’s Analytics.
Private services spending growth has outpaced goods spending in every quarter since COVID restrictions began to ease in spring 2021 as “the long period of forced isolation gave consumers a new appreciation for social interactions. Consequently, spending in restaurants and pubs, indoor rock climbing, aquariums, live music performances, etc. may remain elevated well into the future,” Moody’s said.
This and e-commerce’s decades-long growth has sent a clear message to current retail center owners, operators, and developers: a consistent level of activity within a given shopping center will likely need a greater proportion of these “social” tenants to attract enough foot traffic to support all tenants, it reported.
Private-Service Tenants Rebound
Matt Hammond, Partner, Coreland Companies, tells GlobeSt.com, that “the reality is that suburban retail, may it be grocery-anchored shopping centers or lifestyle centers, has always been driven by the success of its restaurant and private service tenants.
“While COVID restrictions hampered these business-types more than any other, we have seen a definitive rebound during the past 18 months. Shopping center landlords have definitely taken notice of the key role that these tenant types play.
“When a repositioning opportunity arises, everyone involved is focused on the key elements that support their growth. Together with our clients, we put our focus on attracting the first two or three high-quality restaurant tenants that will establish or expand the customer base.
“Inviting patios, accessibility, and visibility are top priorities. The focus then turns to enhancing curb-appeal to create an environment more attractive to service providers. These tenants, such as medi-spas and specialty fitness centers, want a shopping center that is inviting, and fresh. A retail environment that provides a safe place for their customers to visit at any time of day.”
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