REITS are finding that while online shopping is active, their real estate holdings — stores and malls — continue to draw actual shoppers. Most sales still take place in brick-and-mortar, with technology shaping retail and real estate success.

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Real estate industry success:
Build, transform and protect
value into 2020
The Future of Growth and the Real Estate Industry

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Shopping is brisk — in person and online
Showrooming is active, but brick-and-mortar
continues to draw actual shoppers.
Most sales still take place in stores, with technology
shaping retail success.
Technology gathers consumer intelligence
and illuminates viable options.

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REITs-owned retail is generally doing well
Occupancy is at a record high.
Same-store net operating
income has been growing
3½–4% for the past 5 years.

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Malls that are changing are going strong
Successful malls:
• Match the growing interest in experiences
• Reconfigure anchors
e.g., add a fitness center
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Technology is moving retail
to new places

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Omnichannel = a strong store presence + an online arm
Mutual support is vital. Online sales suffer when stores are shuttered
for an exclusive e-commerce concentration.
Utilizing brick-and-mortar + the Web allows the purchase process to
begin at either site.
– Calvin Schnure, Senior VP of Research Economic Analysis
National Association of Real Estate Investment Trusts
An omnichannel strategy is strengthening retail

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Technology informs, enables responsive shifts
Tech allows real estate leadership to collect information and
draw insights about building performance and optimization to:
• Support the case for higher rents
• Reconfigure based on foot traffic and other data
• Improve operations and energy use
• Direct marketing including social media
• Identify meaningful events and services
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Reignite Growth in Real Estate

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4 tech architectures boost future-focused potential
Digitalization and analytics
• Transform business models and processes
• Inform:
- Marketing approaches
- Customer engagement
- Consideration of new and blended products and services

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4 tech architectures boost future-focused potential
Community platforms
• Business model engaging customers in a community defined
by needs and expectations
e.g., millennials who prefer minimal shopping time
• Focus on demographics to:
- Evaluate preferences in products and services
- Prioritize investments and activities

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4 tech architectures boost future-focused potential
IoT
• Network of devices embedded with sensors and electronics
• Collect data to:
- Manage security, energy use
- Monitor facilities, outside logistics and transportation
- Track supply chain assets

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4 tech architectures boost future-focused potential
Blockchain
• Unprecedented security and efficiency
• Transaction transparency
• Cost reduction
• Maximized accuracy, minimized fraud
- In the supply chain
- Purchases in-store and online

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Be flexible, adaptive and tech-savvy.
Drive innovation through partnership
with tech experts.
Create smart building infrastructure
and connected systems.
Take action for a future of growth

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Learn more
about the future of growth in the real estate industry
Reignite Growth in
Real Estate
The Future of Growth and the
Real Estate Industry
Watch the webcastRead the report
Technology is moving retail
to new places
Read the article

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Greg Ross
Leader, Real Estate Sector
T +1 704 632 6817
E greg.ross@us.gt.com
Like further information?
Contact our sector leader

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