Small town retail topics from IEDC conference: getting owners to improve their buildings, recruiting chain groceries and supporting local retail startups

I’m sharing notes from sessions and conversations at the International Economic Development Council annual conference in Dallas. First up: Retail! Lacy Beasley of Retail Strategies moderated a panel on retail real estate and development. While it was mostly big city stuff, several topics were relevant for smaller towns. How to convince a property owner to […]

I’m sharing notes from sessions and conversations at the International Economic Development Council annual conference in Dallas. First up: Retail!

Lacy Beasley of Retail Strategies moderated a panel on retail real estate and development. While it was mostly big city stuff, several topics were relevant for smaller towns.

How to convince a property owner to reinvest in their retail strip,  center or even one building in a small town

Herb Weitzman, a Dallas area retail developer, said that many retail real estate owners think ‘we’re not making any money so we can’t invest in our store or our shopping center.’

As a former rural retail store owner, I certainly recognized that small town, small business attitude.

However, Herb said that much like investment in remodeling and modernizing a retail store will increases its sales, it will also increase overall sales and the corresponding rents for retail centers. It’s possible that this is the right motivation to get some owners to act.

Small, rundown retail spaces can actually be a good long-term investment, Herb said. Buy them, fix them up and get a return.

For a small town, maybe it’s possible to find an outside investor who will purchase the rundown spaces, or to organize a coalition or cooperative of local investors to take it on.  

One municipal official from a town of 50,000 people said they need to revitalize a dilapidated shopping center, but the owner will not reinvest in it. How can the city take a role?

Herb said that city governments often come to him to point out a possible deal, like revitalizing an existing center. They will help facilitate grant applications and other incentives to make the deal work.