The Jackson Law Firm

Commercial real estate affected by e-commerce growth

Like many aspects of the commercial sector, commercial real estate in Texas is being affected by the changes brought to the retail environment by the success of e-commerce. Major online retailers like Amazon have become prominent sources of day-to-day products as well as specialty items. Increasingly, consumers are making fewer trips to retail stores in person and purchasing more of their goods online.

A number of big-box and department stores have seen an impact from the growth of e-commerce; stores from major chains like JCPenney, Macy's, Sears and CVS have closed as in-person sales drop. However, other stores and retail experiences have benefited from providing unique experiences to in-person customers that cannot be replicated by online shopping. Despite the rise of virtual businesses, there remains a significant amount of opportunity for commercial real estate investors in the retail sector.

Shopping that is dull and uninspiring is easily replaced with online offerings that make it unnecessary to drive around, face traffic and wrangle children. Some of the most effective e-commerce implementations have replaced the types of shopping that consumers view as a chore. However, commercial spaces that strive to provide a unique, entertaining experience continue to thrive in physical sales. The incorporation of special events, food and drink services, makeup demonstrations and other activities in retail spaces has promoted customer engagement. In addition, high-volume, walkable spaces in urban and suburban areas are also desirable retail areas that see a high level of customer interest.

People who are investing in commercial real estate have a number of opportunities to do well in retail. Real estate investors may wish to work with an attorney to help protect their rights and ensure that they are entering favorable agreements when entering the real estate market.

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