Doug Shea, president of INCO Commercial, said he believes there is a lot of false information about the death of retail. He explained that announcements regarding Sears, Kmart and Macy’s store closures are being attributed to the rise of Internet sales, which he said is not the case.
“Today, 90% of all purchases are done through a brick-and-mortar store,” Shea said. “Everyone is saying Amazon is taking over, but 90% of all sales – that’s a pretty big percentage.”
Large box retailers such as Target, Nordstrom and TJ Maxx are still going strong on the retail side, according to Shea. He also said that with the closing of Sport Chalet and Sports Authority, he has noticed a gap in certain sporting gear, namely ski equipment.
As far as restaurants, Shea said he is still seeing a lot of movement in certain areas of the city, with second-generation space being more sought after than space that needs to be built out.
“I just see optimism in the market. I don’t see any negative in the market.” Shea said “With Trump being a businessman first and a politician second, I see more optimism than I do pessimism.”
Mitchell Hernandez, an associate of CBRE Southern California, said he and his company do not see an impact on the retail market from the Trump presidency or the forthcoming medical marijuana dispensaries. He said he views the retail world independently of those types of issues.
The market is very good and continues to improve with more projects coming online and being approved, Hernandez said. He explained that diversity and a drive toward urbanization to meet daily consumer needs with better quality and more options, rather than a one-size-fits-all approach, is pushing the city forward.
“We’re happy with what opportunities there are in Long Beach. It’s just so diverse. It really is a great breeding ground for businesses,” Hernandez said. “It’s also a market that’s extremely localized, and people have a lot of pride in Long Beach.”
