Trend Talk

Chain Store Age talked with Michael Puline, senior VP of leasing, Mid-Atlantic and Southeast, for DLC Management Corp., about trends, technology, and projects on the board.



[quote-from-article] If you could isolate five current trends in retail real estate, what would they be?

Here are my top five:



1. Service and Experience continue to be major drivers for consumers and, as such, developers are adding new amenities to create just that. As an example is something I found in the common area at a shopping center I was touring in Atlanta owned by Jamestown Properties. A ping pong table. I saw a teenage boy and his mother playing while they waited for his sister to finish a purchase. They were both laughing and having fun. They made much more than a purchase that day. They made a lasting life memory.



2. Technology continues to shape retail shopping environments. From smart parking stalls, to virtual mirrors, and digital high-street window displays, technology continues to push retail real estate developers to reinvent themselves.



3. New shopping centers are being built in emerging markets and focus continues on redevelopment in the U.S. There is still very little development domestically of any scale and in response to this, landlords are taking capital and reinvesting it into their top properties to further secure them as the market leaders.



4. Online retailers are going offline and offline are going online. Warby Parker goes offline and Macy's goes online. Look for this to continue as consumers demand more omnichannel options from all retailers.



5. Occupancy rates continue to improve in response to the following three reasons: Access of capital to mom and pop tenants, lack of new development, and job and wage growth.



What future trends do you expect to see?

I think we’ll continue to see an increased speed of adopting technology into the retail real estate sector.



What about technology — is it important to incorporate tech into today's developments?

It's a must. This generation can't comprehend things like not having free Wi-Fi. It's kind of like not having a bathroom. It's really that important. But now there is so much more than that. There are apps, rewards, games, social media, contests, etc. Technology will be the single most driver of change to our industry over the next 20 years.



Your portfolio focuses on grocery-anchored centers. Are you seeing grocers reacting to the shopper's demand for an experiential experience?

We actually have a pretty diverse portfolio these days but still have a number of grocery stores in our shopping centers. Yes, without a doubt, grocers understand very well how important experience truly is. Often times they will get the same customer two or three times a week. If they don't deliver consistent service and experience they will definitely feel it at the end of the month.



What should next steps be for aging centers to stay relevant and compete for retailers' new locations?

Smart design changes. Finding an innovative design team to come up with some simple, cost- effective upgrades can make all the difference. Whether it's lighting, painting, paving or landscaping, keeping a shopping center looking clean, fresh and relevant is a must in order to compete.



What's next for DLC?

DLC continues to grow by acquiring value-creation projects domestically. We have several currently underway and have recently sold some that were complete. We will look to continue to add value across our existing portfolio as well as listen to the people who regularly bring us projects to consider. It's an exciting time at DLC. We have a terrific team all working together to achieve success for everyone involved.