RETAIL REAL ESTATE INSIGHTS FROM COLLIERS' ANDREW WHITE

Written by: Jake Lord & Andrew White

The Columbus Retail Team at Colliers | Columbus provides tailored landlord representation, tenant representation, consulting and buyer/seller advisory services to clients across Central Ohio and the greater Midwest. Throughout every phase of the retail real estate process, the team partners with clients to develop strategic, data-driven real estate solutions that support informed decision-making and long-term growth. By combining deep local market expertise with strong relationships among regional and national retailers, the team helps businesses identify optimal locations while assisting property owners in maximizing the performance and long-term value of their assets.

To gain additional insight into current retail trends and brokerage strategies, the Colliers | Columbus Research Team spoke with Andrew White, Brokerage Vice President about what he’s seeing in the market and how retailers and landlords are navigating today’s landscape.

Which markets in Columbus are you seeing the most activity in terms of new retail developments?

Andrew indicated that numerous areas across the Columbus metropolitan area are currently growing rapidly in terms of retail. On the west side of Columbus, Dublin continues to be one of the most active retail development areas due to the continued expansion of Bridge Park, future retail elements at The Shoppes at River Ridge and the proposed 2.5 million sq. ft. mixed use development near Cosgray Road and State Route 161.

The northeast side of Columbus is also exhibiting increased activity due to the growth of residential development along Hamilton Quarter, located near Hamilton Road and I-161, and retail infill opportunities along State Route 23 in Lewis Center (near BJ’s and Menards). Along with this, redevelopment activities along Stringtown Road in Grove City (projects at the former China Bell site and redevelopment of Beulah Park) are beginning to positively impact the retail environment of the area.

Do you believe there are unique challenges associated with retail when compared to office and industrial commercial real estate?

According to Andrew, retail is subject to a more restrictive set of conditions than usually seen in industrial or office leasing. While the industrial sector is experiencing an unprecedented construction boom, with builders constructing large speculative buildings capable of accommodating a vast array of users, retail spaces are typically custom-built for individual users. Industrial buildings are generally built to accommodate standard features such as electrical power, dock doors and column spacing, making it easier for a large amount of space to be absorbed. Retail, however, relies on factors such as visibility, traffic flow and adjacent co-tenancy.

Retail spaces must also accommodate highly specialized buildouts. For example, restaurants may require special kitchen equipment and/or design (i.e., hood systems), ventilation and HVAC upgrades, while other retailers require certain layouts or equipment installations. Therefore, retail is characterized by a high level of flexibility and adaptability, allowing brokers to effectively match tenants with available space that meets the operational needs of each.

What does the future hold for mixed-use developments in Columbus, specifically related to retail?

Mixed-use developments are expected to continue to play a significant role in the growth of Columbus, as the city continues to expand and improve the quality of its housing stock. According to Andrew, these projects involve the combination of residential, retail and entertainment uses, creating dense, amenity-rich environments that benefit both the resident population and the surrounding community.

While retail is not usually a priority for mixed-use developments during the initial planning phases, the right mix of tenants can greatly enhance the success of the project. A well-planned retail environment can activate public spaces, foster community interaction and provide convenient access to goods and services to nearby residents. Columbus-based examples of successful mixed-use developments that incorporate retail include Bridge Park in Dublin, Grandview Crossing and TruePointe in Hilliard, demonstrating how thoughtful integration of retail can enhance mixed-use projects.

How can retail property owners attract high-value tenants?

Andrew indicated that attracting strong tenants starts with knowing what a tenant needs. Each type of tenant has a different set of requirements, whether it is specialized kitchen equipment for restaurants or infrastructure upgrades for large-format retailers.

Retail property owners who successfully attract high-value tenants typically make improvements that enable tenants to quickly and efficiently launch their businesses. Such improvements can include power upgrades, sprinkler system improvements, floor covering modifications and upgraded HVAC and ventilation systems. Additionally, many landlords offer tenants an allowance for improvements to help offset the cost of build-out expenses. These incentives not only attract desirable tenants but also help increase the value of the property over time. Securing strong tenants can improve the tenant mix, enhance the attractiveness of the project to potential lessees and ultimately increase the sale price of the property if the owner decides to sell.