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High-end and luxury retail locations "have continued to post very healthy rent growth despite the headwinds facing the sector as a whole," REIS's Bond said. Labor market trends also lend support to physical retail. REIS said that less than one fifth of the 125,100 jobs the U.S. retail sector added over the last 12 months came from e-commerce. "The retail industries using traditional retail space are still showing net gains in employment," REIS said. Meanwhile, restaurants, a growing marquee feature in shopping centers, have added 216,200 jobs the past year, according to REIS data. As mall developers re-adapt to meet the new consumer demand, their tenant mix has also changed. For instance, at the end of last year, mall developer GGP, which has agreed to sell itself to Brookfield Property Partners, counted 40% of its leasing tenant mix from apparel retailers, down from about 50% traditionally, GGP CEO Sandeep Mathrani said in a call in February. He added that that percentage could decline to as low as 35% this year.
For the original version including any supplementary images or video, visit https://www.forbes.com/sites/andriacheng/2018/07/08/brick-and-mortar-retail-is-far-from-dead-just-look-at-whos-moving-in-to-replace-toys-r-us/