Real estate must respond to growing retailer sophistication
Retail occupiers and brands have become more sophisticated in terms of how they choose different locations following the covid pandemic and also due to the rise of digital, said Alex Avery, CEO of Pragma Consulting, Pragma a management consultancy that specialises in commercial strategy.
The firm supports investors, operators, developers, asset managers, consultants and architects in maximising the commercial value of real estate space by assisting a better understanding of people, products and place, Avery explains.
“With the way market trends are evolving, there’s been an increased emphasis and growing focus on the evidence base behind the way developments are performing,” he said. “It’s getting more complex. There’s a wider mix of features that are playing into that.”
One trend is the increased understanding of underlying profitability and performance of retail tenants in real estate projects. “Traditionally, that’s been an area that hasn’t been that well understood and that’s helping to unpick what kind of different categories and brands are best suited to which locations.”
He said this is leading to more innovation in formats. “That might be in a conventional shopping centre, a high street format, a flagship format or pop-up format. That’s an area that’s very interesting for us in terms of helping to underpin what’s relevant for a different asset and also matching the right brands to a particular scheme.”
Please click on the video above to watch the full interview or listen to the podcast below.