Welcome to the first of a 3-part series, where we’ll explore commercial real estate markets and the impact COVID-19 is making on business spaces and operations. The focus of these blogs will be to highlight not the “big guys” but the everyday midsize owner, operator and manager who wears many hats and often has a portfolio of 1 million to 5 million SQ FT. Much of the industry news has focused on large office and retail REITs muscling through COVID-19. However, there is a niche in the retail space that is evolving and, in some cases, thriving through the pandemic: the suburban neighborhood retail center. Neighborhood retail centers, often anchored by a convenience store and restaurant, are evolving into local destinations for residents hungry to get out but not willing (or able) to go too far. These businesses are frequently owned and operated by smaller real estate companies, and these companies are being pushed to reinvent their spaces, business models and operating practices. In the Sunbelt, these neighborhood retail centers will continue to evolve and pivot as the impact from the winter elements is muted. These can be thought of as the smaller siblings to the grocery-anchored centers, serving a smaller customer base and a more fluid tenant mix. It’s intriguing to observe how COVID-19 pushed the digital transformation within this niche space. The first wave of disruption for owner/operators was to assess their tenant mix and viability. The pandemic ushered in a spike of curbside pickup and delivery during the spring lockdown. Savvy owners moved quickly to reinvent their spaces and repurpose parking and outdoor seating to attract customers to the venue. Tenant improvement projects and budgets shifted towards the creation of outdoor spaces that can be utilized. In some cities, street parking spaces were transformed into “parklettes”—patios designed to accommodate eating or entertainment at a safe distance. Clearly, som...

Welcome to the first of a 3-part series, where we’ll explore commercial real estate markets and the impact COVID-19 is making on business spaces and operations. The focus of these blogs will be to highlight not the “big guys” but the everyday midsize owner, operator and manager who wears many hats and often has a portfolio of 1 million to 5 million SQ FT. Much of the industry news has focused on large office and retail REITs muscling through COVID-19. However, there is a niche in the retail space that is evolving and, in some cases, thriving through the pandemic: the suburban neighborhood retail center. Neighborhood retail centers, often anchored by a convenience store and restaurant, are evolving into local destinations for residents hungry to get out but not willing (or able) to go too far. These businesses are frequently owned and operated by smaller real estate companies, and these companies are being pushed to reinvent their spaces, business models and operating practices. In the Sunbelt, these neighborhood retail centers will continue to evolve and pivot as the impact from the winter elements is muted. These can be thought of as the smaller siblings to the grocery-anchored centers, serving a smaller customer base and a more fluid tenant mix. It’s intriguing to observe how COVID-19 pushed the digital transformation within this niche space. The first wave of disruption for owner/operators was to assess their tenant mix and viability. The pandemic ushered in a spike of curbside pickup and delivery during the spring lockdown. Savvy owners moved quickly to reinvent their spaces and repurpose parking and outdoor seating to attract customers to the venue. Tenant improvement projects and budgets shifted towards the creation of outdoor spaces that can be utilized. In some cities, street parking spaces were transformed into “parklettes”—patios designed to accommodate eating or entertainment at a safe distance. Clearly, som...