The Changing Demographic of Consumers Presents a Break with Retailers of the Past
Vacancy & Absorption Trends
The vacancy rate in the Minneapolis-St. Paul retail market increased for the third straight quarter, rising to 6.1 percent in quarter one of 2017. Vacancy has been steadily increasing from end of year 2015 when at that time, it was at 4.4 percent. There was 28,426 square feet of negative absorption, which was largely due to regional shopping centers metro-wide reporting negative 152,446 square feet of absorption. Some of the negative absorption was due to Sears closing in Coon Rapids, vacating 132,700 square feet.
Changes on the Horizon for Fast Casual Dining
Fast casual retail expansion activity continues to remain strong in the Twin Cities, while long-standing sit-down chain restaurants like Applebee’s, Ruby Tuesday’s and Buffalo Wing Wings are projected to decline as diners are consistently opting for convenience, affordability and healthier options. The competitive and everchanging nature of the restaurant retail landscape is forcing the retail giants of the past to reinvent themselves as newcomers in the market continue to emerge. Buffalo Wild Wings is closing two Twin Cities PizzaRev restaurants, one in Edina’s Centennial Lakes and the other at Hopkins’ Knollwood Crossing. The chains were opened three years ago as franchisees of the California chain. Buffalo Wild Wings confirmed the restaurants would close, but did not give a specific date.