The Evolving Landscape of Commercial Real Estate in the Restaurant and Retail Sectors
Heather Ewing • October 29, 2024
The Evolving Landscape of Commercial Real Estate in the Restaurant and Retail Sectors
The commercial real estate landscape is rapidly changing, especially in the sectors of restaurants and retail
The commercial real estate landscape for retail and restaurant properties continues to evolve in response to changing consumer behaviors and preferences. As operators adjust to the current market conditions, several key trends are shaping the industry:
Shifting Footprints and Locations
- Suburban Growth: The migration of people to suburban areas has led to increased interest in restaurant properties outside city centers. Operators are capitalizing on this trend by expanding their presence in residential neighborhoods, where customers spend more time.
- Urban Adaptation: While urban centers face challenges, innovative concepts are emerging. Some property owners are experimenting with hybrid spaces that serve as offices during the day and transform into dining areas in the evening, maximizing the use of real estate.
Operational Adjustments
- Staff Optimization: Restaurants are leveraging technology to streamline operations and address labor shortages. This includes the implementation of self-service kiosks, mobile ordering systems, and table-side payment devices.
- Robotics Integration: To enhance efficiency and reduce labor costs, some establishments are incorporating robotics into their operations. This includes automated food preparation systems and robotic delivery services.
- Drive-Thru Expansion: Quick-service restaurants are investing heavily in drive-thru capabilities, recognizing their importance in meeting customer demand for convenience. Many are implementing multi-lane designs and advanced ordering technology to improve throughput.
Operational development in retail and restaurants are making an impact on commercial real estate
Technological Advancements
- Ghost Kitchens: The rise of delivery-only restaurants continues to create demand for different types of commercial spaces. These kitchens often require less square footage and can be located in areas with lower rent.
- BOPIS Model: The "Buy Online, Pick up in Store" model has revitalized retail in strip mall centers, with an increase of 18% in traffic compared to previous years.
Market Outlook
While challenges persist, there are signs of recovery in the food service sector:
- Sales Projections: Overall restaurant sales are expected to surpass previous levels, though the distribution may look different across urban and suburban locations.
- Property Valuation: Global property valuation declines continued through the second quarter of 2024, down 6.3% year over year, but the pace of decline is slowing.
As the industry continues to adapt, flexibility and innovation remain key to success in the retail and restaurant sectors of commercial real estate. Operators who can effectively respond to changing consumer behaviors and leverage technology will be best positioned to thrive in this evolving landscape.
Recent Posts
In the whirlwind of our busy lives, annual goals can often feel distant and are easy to push to the next day, week or month. Enter the 12 Week Year by Brian Moran—it’s a game-changing approach to achieving your dreams faster by breaking down your goals into shorter, more actionable sprints. What is the 12 Week Year? The principle is simple yet revolutionary: Instead of setting goals for a year, treat every 12 weeks as a year. This means focusing on achieving results within a compressed time frame, which promotes clarity, urgency, and intense focus. It reminds me of marathon training (which has been really effective for me) but instead of 16 weeks, it’s only 12 weeks. Here’s why it works: Shorter Deadlines: Procrastination thrives when we think we have “plenty of time.” With only 12 weeks, you’ll naturally increase your focus and effort. Clearer Goals: You’ll prioritize what matters most, eliminating the clutter of irrelevant tasks. Frequent Feedback: Every week offers an opportunity to reflect and course-correct. How to Get Started Define Your Vision: What do you truly want to accomplish? Whether it’s launching your dream business, completing a fitness milestone, or mastering a new skill, clarity is key. You have to really want it; otherwise, you’ll fizzle out and lose confidence. Set Measurable Goals: Be specific. Instead of “I want to get in shape,” try, “I’ll lose 8 pounds by the end of 12 weeks through consistent workouts and a balanced diet.” Create Weekly Tactics: Break down your goal into weekly actions. For example: Week 1: Plan workouts and prepare meals. Week 2: Attend 4 gym sessions and track meals daily. Track Progress: Every week, evaluate your performance. Did you complete your actions? If not, adjust your approach for the next week or work on the weekend to get caught up. Celebrate Wins: Recognize and reward your achievements each day with recognition and at the end of 12 weeks celebrate in a bigger way. Then, take a week off to clear your mind, reset and then set your sights on the next cycle! Take the Leap Avoid the “all or nothing” attitude. We’re in Week 4 so start today, you will be much further ahead than if you don’t. Every day is a choice and chance to advance your life and career in the direction you dream of. I believe in You. Isn’t it time you believe in You?!
You’re an Achiever, you do the work when you want to and when you don’t want to. It’s a positive habit that reaps benefits for You and Your Clients in Commercial Real Estate or When running marathons throughout the world. The work put in behind the scenes fuels 🔥the wins witnessed in public. In fact, since 2015, I’ve raced 26 half-marathons of which I placed in the top 3 in 50% of my races and have completed 10 full marathons of which 3 were international, 7 in the US. I was ecstatic when earlier this Fall, the email below arrived in my Inbox. The Bank of America Chicago Marathon reached out to me to claim GUARANTEED ENTRY 🎯 to the 2025 Chicago Marathon. Did I sign up?! Most certainly! 🙌🏻 It took me by surprise! I was and AM THRILLED!! Next year is set: 🏃🏼♀️April 2025-Milan, Italy marathon 🏃🏼♀️October 2025-Chciago marathon It’s lined up and taken care of! Look forward and create your Future while living fully in the Present. Live Fully!
It's Heather here, and I'm excited to share a heartfelt conversation between me and my friend, Ashley Quinto Powell. We both have unique stories in the world of entrepreneurship, and we want to take you on a journey through our experiences. In this blog post, we'll reflect on the challenges we've faced and the lessons we've learned along the way. So, let's dive into our candid conversation about authenticity, the value of experience, and overcoming obstacles in the entrepreneurial world. Our Journey into Entrepreneurship: I started my entrepreneurial journey in my mid-thirties, while my friend took the plunge in her early twenties. In my case, I had a few early businesses that, looking back, might have been better off as hobbies. Nevertheless, these experiences quickly revealed our strengths, weaknesses, and what it truly takes to run a successful business. She sold her apartment and cashed in her 401k to fund her first business in her early twenties. We admit that youthful hubris led to some misguided decisions. But like me, she emerged from that experience with invaluable lessons that would shape our future endeavors. The Value of Authenticity: In a world where many people create facades to project a certain image, both of us believe that authenticity is a game-changer. We pride ourselves on being direct and straightforward in our approach to business. We want you to know that you get what you see with us. Our authenticity has been a cornerstone of our success, and we believe it can be for you too. The Importance of Experience and Mentorship: Our early ventures weren't without their challenges. We both acknowledge that a lack of mentorship and resources made the road tougher. While we don't necessarily recommend this path, we recognize that the steep learning curve can be an accelerator for those who persevere. Finding the right mentors and having a solid plan can make a significant difference in your entrepreneurial journey. Overcoming Failure: We've both faced failure in our careers, and we're not ashamed to admit it. My first business didn't go well, and my friend experienced a spectacular failure. These setbacks were difficult to overcome, but they provided us with the resilience and determination needed to succeed in our subsequent endeavors. Lessons for Aspiring Entrepreneurs: So, what advice do we have for you, aspiring entrepreneurs? First and foremost, take time for self-reflection. Identify your strengths, weaknesses, and what you genuinely want. Hard work is non-negotiable in entrepreneurship, but don't be swayed by the myth of endless working hours and burnout. Find the right mentors and create a solid plan for your journey. Conclusion: In closing, We want you to know that authenticity, resilience, and staying true to yourself are essential in the world of entrepreneurship. Our stories serve as a testament to these principles. We hope that by sharing our experiences, you can gain valuable insights for your own entrepreneurial journey. Remember, it's not always about the destination, but the lessons learned along the way that truly matter. So, here's to your entrepreneurial success! Learn more on these topics on Episode 10 of the Heather Ewing: The CRE RUNdown podcast with Ashely Quinto-Powell.
I'm in Week 2 of 16 of training for the Madison Marathon! This will be my 9th marathon. It holds a special place in my heart as it was also my first marathon approx. 23 years ago! Yes, after the initial marathon, I said never again! I didn't run my 2nd marathon until 17 years later in 2019 (in New York). Morale of the Story, Never say Never. Of course I pondered, what changed that I said never again to really enjoying the process? I changed. Much of running is mindset, what you tell yourself, discipline, re-creating and upleveling your life. In fact, after 2019, I realized I had been playing small. In 2020, I founded ABSTRACT Commercial Real Estate, returned to the downtown I love, live and breathe, I obtained my CCIM designation (only 5% of real estate professionals have attained this), I've ran three international marathons, and more. Wow! With each marathon, I grow and evolve. This melds into other aspects of life in the best of way....as you can see! I have several ideas I'm "chewing" on. As always, more to come! Meanwhile...Follow my daily updates on training runs, gear, musings and more on my personal facebook.
In this compelling podcast episode, we delve deep into the journey of Emma Powell, a real estate photographer turned investment powerhouse. Emma’s story is one of resilience, strategic thinking, and the pursuit of genuine happiness. As the driving force behind Rise Capital, Emma’s mission was to retire her husband before the age of 50, a goal she proudly achieved in 2022. However, her journey extends far beyond financial milestones. Emma emphasizes the importance of fostering a deep relationship with oneself, rather than seeking joy in external accomplishments. This philosophical perspective is woven throughout her narrative, offering listeners a unique blend of practical advice and life wisdom. Emma’s journey into real estate began somewhat accidentally. Initially a photographer, she was introduced to real estate photography by a neighbor who was a realtor. This experience reignited her childhood fascination with buildings and properties. Emma’s passion for real estate grew organically, eventually leading her to explore investment opportunities. This organic growth is a testament to the importance of loving the business you’re in, a point Emma stresses repeatedly. Her passion for real estate is evident, and it has played a crucial role in her success. A significant portion of the episode focuses on diversified real estate investing strategies. Emma discusses the importance of specialization and teamwork in the real estate industry. By focusing on one area of expertise—finding and marketing real estate properties—Emma has been able to mitigate investment risks through a diversified portfolio. She highlights the importance of partnering with others for tasks like property management, emphasizing that you don’t need to be an expert in every aspect of the business. This approach allows her to invest in various types of real estate, from private notes to multifamily apartment buildings, without overexposing herself to market fluctuations. Stress management and work-life balance are also key themes in this episode. Emma shares her techniques for managing stress, including watching TV to decompress. While this might seem unconventional, it’s a method that works for her. She also enjoys various hobbies such as hiking, traveling, and artistic pursuits, which help replenish her energy. Emma’s ability to balance work, play, and relaxation is a crucial part of her overall strategy for achieving happiness and success. This balance is essential for anyone looking to follow in her footsteps and achieve similar goals. Another critical aspect of Emma’s journey is her expertise in raising capital and networking. Emma offers invaluable advice for those looking to get involved in the investment world, whether as active or passive investors. She emphasizes the importance of networking and meaningful conversations, rather than relying on impersonal email lists. Her professional background in pitch deck design also comes into play, as she helps others create compelling presentations to attract investors. Emma’s insights into the art of networking and capital raising are invaluable for anyone looking to succeed in the real estate industry. Emma’s story is not just about financial independence; it’s also about internal happiness and personal growth. She believes that true happiness comes from one’s relationship with oneself, rather than external achievements. This philosophy has guided her through her journey, helping her navigate the ups and downs of the real estate market. By focusing on internal happiness and fostering a deep relationship with herself, Emma has been able to achieve her goals and find true contentment. The episode concludes with Emma discussing what living fully means to her. For Emma, living fully is about choice and play. She used to view freedom as something to fight for, but she realized that this mindset was stressful. Instead, she now focuses on making choices that bring playfulness and joy into her life. Whether it’s through her work, hobbies, or relationships, Emma strives to find wonder and playfulness in everything she does. This shift in perspective has allowed her to live a more grateful and playful life, truly embodying the concept of living fully. In summary, this episode offers a wealth of insights and inspiration for anyone interested in real estate investing or seeking financial independence. Emma Powell’s journey is a testament to the power of passion, strategic thinking, and internal happiness. From practical advice on diversification and capital raising to philosophical reflections on true happiness, this episode is brimming with actionable strategies and inspiring narratives. For more insights and to connect with Emma, visit investwithemma.com. Don’t miss this opportunity to learn from one of the industry’s most inspiring figures. Listen to our Podcast here: Ep. 29 Emma Powell - Retire before 50! (buzzsprout.com)
Life has a way of throwing curveballs, but it's how we handle these unexpected challenges that defines our success. Mike Deaton’s journey is a powerful testament to this truth. In this episode, we explore Mike's transformation from a corporate employee to a successful entrepreneur in land flipping and an ultra-marathon runner. Mike's story is not just about overcoming setbacks; it's about seizing opportunities and living life to the fullest. In 2016, Mike and his wife faced a pivotal moment when they both got laid off. Rather than succumbing to the fear and uncertainty that often accompany such events, they chose to reflect deeply on their life goals. This introspection led them to downsize, relocate to Colorado, and start a business in real estate. Their venture into land flipping and commercial real estate not only replaced their previous incomes but also surpassed them. This decision marked the beginning of a journey that would transform their lives in unimaginable ways. One of the critical elements of Mike's success in real estate was his ability to maintain a resilient mindset. Shifting from a corporate role to becoming a limited partner in multifamily investments, and eventually taking on more dynamic roles, Mike learned the importance of finding a niche and continually learning from mentors. He delved into various real estate asset classes, including triple net leasing and storage units, always maintaining a beginner's mindset. This approach enabled him to navigate the inevitable ups and downs of the real estate world with grace and adaptability. Parallel to his real estate journey, Mike rediscovered his passion for running. What began as a high school punishment transformed into a meditative and social activity that brought immense joy and personal growth. Starting with 5Ks, Mike gradually progressed to marathons and ultra-marathons, including the grueling Leadville 100. He draws fascinating parallels between endurance sports and business, emphasizing the necessity of a strong "why," a well-thought-out plan, consistency, and adaptability. These principles not only guided him through his running challenges but also proved invaluable in his entrepreneurial endeavors. Living fully is a recurring theme in Mike's story. He shares his love for travel, adventure, and the joy of being present in each moment. For Mike, living a full life means prioritizing experiences over material possessions. Whether it's running in the beautiful foothills of Pikes Peak or exploring new business opportunities, Mike embodies the spirit of seizing life's opportunities and making the most of every moment. Mike’s journey from corporate setbacks to real estate triumphs and ultra-marathons is a source of inspiration for anyone facing challenges in their career or personal life. His story underscores the power of introspection, resilience, and the willingness to step out of one’s comfort zone. By embracing these principles, Mike not only transformed his own life but also continues to inspire others through his coaching and mentorship. For those interested in real estate, Mike's experiences offer invaluable insights. From understanding the significance of a resilient mindset to the importance of finding a niche, Mike’s journey provides a roadmap for aspiring real estate investors. His success in land flipping and commercial real estate serves as a testament to the potential of this industry when approached with the right mindset and strategies. Moreover, Mike's return to running and his participation in ultra-marathons highlight the importance of physical fitness and mental fortitude. His story demonstrates that success in any field requires dedication, consistency, and a willingness to push through challenges. Whether it's training for a marathon or navigating the complexities of real estate, the principles of resilience and adaptability remain the same. As we wrap up this exploration of Mike Deaton's incredible journey, it's clear that his story is one of transformation, resilience, and the pursuit of a fulfilling life. From corporate layoffs to real estate success and ultra-marathon triumphs, Mike's journey is a powerful reminder that setbacks can be transformed into opportunities with the right mindset and approach. For those seeking inspiration and practical insights, Mike's story is a must-listen. To connect with Mike and learn more about his ventures in land flipping and real estate, visit his website at flippingdirt.us. Here, you can find valuable resources, set up appointments for further discussions, and gain insights into the world of land investing. Whether you're an aspiring real estate investor or simply seeking motivation to overcome life's challenges, Mike Deaton's story offers a wealth of inspiration and actionable advice. Listen to our Podcast here: Ep. 31 Flipping Dirt with Mike Deaton (buzzsprout.com)
I talk with people on Heather Ewing: The CRE RUN down in various positions in/related to commercial real estate all over the nation. Simply said, I LOVE it! I connected with the king of real estate tax appeals, Nick Mao. He’s a seasoned expert and partner at First Point Advisors. With 17 years of experience under his belt, Nick shares invaluable insights on navigating property tax burdens, particularly in the states of Florida and Texas. His firm, First Point Advisors, has a unique approach to collaborating with top firms across the country, ensuring that clients receive the best possible service. The episode kicks off with a detailed exploration of Nick's career journey and the strategic decisions that have led to the firm's success. We also touch on the critical role of referrals and the trust that clients place in recommendations, which underscores the firm's commitment to excellence and a competitive edge in the industry. The discussion then shifts to the importance of maintaining a positive mindset and personal wellness to achieve professional success . Nick and our host share their daily routines and self-care practices, emphasizing how these habits not only enhance business outcomes but also nurture personal relationships. The episode highlights the significance of organizational skills and clear goal-setting, particularly in the context of expanding the commercial real estate business and preparing for the upcoming appeal season in Florida. Networking is another key topic, with a focus on leveraging platforms like LinkedIn and professional groups such as CCIM for personal and professional growth. One of the standout aspects of this episode is Nick's deep dive into the technicalities of real estate tax consulting . He explains how First Point Advisors specializes in property tax appeals, primarily for commercial assets like hotels, apartments, office buildings, and industrial properties. Nick's firm acts as an advocate for their clients, performing real estate valuations and aiming to reduce the market value or taxable value of their assets. This meticulous approach helps clients significantly lower their real estate tax burdens. Nick also discusses the firm's unique model of partnering with best-in-market firms for areas outside their immediate expertise, ensuring top-tier service across the country. Another highlight of the episode is the exploration of mindset and wellness . Nick emphasizes the importance of focusing solely on real estate tax appeals within his firm, which allows them to deliver exceptional client service through specialized expertise. Personal experiences and backgrounds have played a crucial role in shaping this niche focus. Nick shares his daily routines, which include early morning workouts and meticulous planning, to set himself up for success. These practices not only enhance business outcomes but also positively impact personal relationships and overall well-being. The conversation then moves to business growth and personal planning. Nick and our host discuss the importance of organization and clear goal-setting for both personal and business growth. Having a crystal-clear vision is essential for productivity and balancing work and relaxation. Nick shares his focus for the remainder of the year, which includes growing their commercial real estate business and preparing for the upcoming appeal season in Florida. On a personal note, he talks about planning his wedding with Kristen, highlighting the balance between professional and personal commitments. Networking through LinkedIn and CCIM has been instrumental in Nick's growth, providing valuable connections and opportunities. Throughout the episode, Nick's passion for his work is evident. He shares his journey from starting in the industry 17 years ago to co-founding First Point Advisors in 2016. The firm's growth from two people to twelve is a testament to their dedication and expertise . Nick also touches on the importance of building relationships and delivering value to clients. He enjoys the challenge of real estate tax appeals and the satisfaction of helping clients save money. The competitive aspect of his work drives him to continually improve and deliver excellent results. The episode also delves into Nick's personal philosophy on life and success . He believes in the importance of personal health and wellness, which he achieves through physical fitness and a positive mindset. Nick's daily routines include early morning workouts, which help him start the day on a positive note and set the tone for success. He also emphasizes the importance of being present and attentive to his family, staff, and business partner. This holistic approach to life and work is what sets Nick apart and contributes to his success in the real estate tax consulting industry. In summary, this episode offers a wealth of knowledge and inspiration for anyone involved in or interested in real estate tax consulting. Nick Mao's expertise, combined with his focus on wellness and personal growth, provides a comprehensive guide to achieving success in this complex field. From technical insights to personal philosophies, listeners are sure to gain valuable takeaways that can be applied to both their professional and personal lives. Listen to our Podcast here: Ep. 30 Nicholas Mau - Making Your Taxes Work for You (buzzsprout.com)