June 24, 2020 Insights on Retail Leasing By Top Industry Expert

Julie Taylor, Executive Vice President with Colliers International, was interviewed in a podcast on June 24, 2020 by THEREGISTRY about the current situation and future prognosis for San Francisco Bat Area retail. Here are a few highlights from this. Retailers are reexamining their supply chains and may look for multiple routes, and more domestic vendors so they are not so dependent on one or two overseas sources. There may be a  shift in certain retail segments to have the rent tied more to how the business is going, with the landlord benefiting when times are good and subsidizing when times are tough.  There will be fallout with a number of retailers not surviving the Pandemic downturn. The credit of the retailer doesn’t necessarily mean anything as a whole lot of credit tenants stopped paying rent during this crisis. San Francisco is an expensive place to do business, and their fees to open a new retail business are through the roof. Julie was working on a 1,200 square foot one-year retail popup where the landlord was dropping the rent 70% just to get the space tenanted, but the city fees were more than the total rent and the deal collapsed.. On-line presence for retailers is an absolute necessity to survive these days.