What we haven’t covered though are the markets that are worth looking at based on a combination of various growth factors.
The following list, put together by JLL, was determined by taking into account population growth, job growth, retail rent growth and planned new construction.
Here are their top 5 picks:
- Dallas – By mid-2016 new construction in the Dallas area will drive vacancy rates up, which will draw in new retailers that haven’t been able to find available real estate. As a result of having one of the fastest growing job markets in the U.S., Dallas has seen an uptick in consumer spending, giving retailers with expansion plans here some added reassurance.
- Orlando – While tourism is still the main driver for the Orlando economy, local population growth is also fueling retail demand. In 2014, Orlando was the most visited city in the country, which helped propel retail sales growth. But solid employment growth and a young, well-educated population will also help with this market’s expansion.
- Seattle – Maintaining a position as a leading tech hub has always boded well for the city’s retail performance. But Seattle’s flourishing population, characterized by high incomes, job growth and prime spending ages, is perhaps one of its greatest strengths. And as Seattle-based retailers such as Zulily, Nordstrom and Uniqlo continue to experience solid growth, we should see rent increases and reduced vacancy rates.
- Phoenix – Rising from the ashes of the recession, Phoenix is becoming a target market for up-and-coming retailers that are wanting to expand and/or roll out new concepts. This reemerging market is being stimulated by a number of factors, including, but not limited to, the residential housing market recovery as well as job and population growth.
- Denver – Denver’s highly-educated, high-income population as well as economic fundamentals that are stronger than the national average are driving the city’s retail sector growth.
A Word of Caution
As we write about the top markets, it’s always important to stress the fact that if you’re looking to expand your presence, you need to perform your due diligence and pick the markets that are going to be ripe with your customers or potential customers – because those are going to be the best markets for your unique brand.
And with today’s analytic tools, it’s easier than ever to determine where your best customers are located and which markets offer your brand the most potential.
If you’re searching for help in your expansion journey, let’s talk about how customer analytic solutions can be your guide.