Five Technology Challenges the Manufacturing Industry Will Face in 2024

Even with the rise of online shopping, about 70% of all retail sales still go down in physical stores. There's an enduring love affair with brick-and-mortar shops that just won't quit.

What does that mean for your brand?

It's not just about setting up shop anymore. Consumer expectations are high, technology is evolving faster than ever, and the retail landscape is constantly shifting.

Why? Elevated consumer expectations, advanced technologies, supply chain innovations, and progressive industry trends — to start.  

It’s a tough world out there.  

Let's take a quick peek at how multi-site retail organizations are stepping up their game in managing their full commercial real estate lifecycle, from maximizing retail space value to optimizing project lifecycles, tracking lease portfolios, capitalizing on the power of IoT for operational excellence and more.  

Plenty of demand still exists for prime retail corridors, and given the spare supply outlook, the probability is high that the retail real estate market will remain tight throughout 2024.

Smaller neighborhood centers are gaining traction, but high inflation has raised the costs of materials and labor, resulting in greater insurance premiums and payouts. Nevertheless, people are starting to prefer a smaller, familiar, and personalized shopping experience.

Pain Points in Retail Real Estate Management

Managing the full real estate lifecycle can be challenging and complex. Common issues like selecting new sites, managing lease scenarios, and extended project timelines can cost a business time and money.  

Maximizing Retail Space Value

Leveraging real estate site planning and market analysis are the beginning stages of the process flow. This is where you identify goals from a real estate strategy standpoint. Think about running a demographic and psychographic analysis to determine market preferences. Then you can tailor the space accordingly.

Consider developing a concise budget that includes all pre-opening expenses. Then, prioritize these expenses based on necessity and the potential ROI.

Maintenance Management

It doesn’t matter how smart you are when it comes to buying retail real estate, if you’re not taking care of it effectively.

A diversified CMMS (computerized maintenance management system) and a trusted service provider network help retailers navigate an increasingly competitive market.

When it comes to lease administration, features and functions tailored for multi-site retail include:

• Multi-location lease management
• Centralized lease database
• Lease abstraction including CAM reconcilation
• Automated Processes
• Bidding period management

What’s Next?

The retail real estate sector continues to evolve, as retail performance comes back to life after the pandemic. Store openings outpaced store closings in 2023, despite weaker retailers falling by the wayside.  

Retail asset and lifecycle management software is evolving to ensure your organization can reduce costs and maximize the value of every square foot of your multii-site retail CRE portfolio.  

Ready to unlock the full potential of your retail real estate and facilities management? Find out how in the full eBook, Maximizing Retail Success in 2024.