Why Are the Hottest Brands and Restaurants Moving to the Suburbs?

The DLC has never been more bullish on the fundamentals we see at the property level. Retailers are waiting in line for any vacant space. They see a clear migration of consumers and establishments toward the suburbs, and open-air retail is perfectly positioned to flourish in this environment.

The numbers do not lie. Open-air retail is thriving. Customers are looking to stay closer to home to shop. Lifestyles have changed and people are looking for greater convenience and options in a neighborhood shopping center.

This attracts a greater mix of retailers and services to a center. Gyms, wellness, eatertainment, medical services. It’s about becoming a destination which is more experiential.

Keep in mind what the DLC call the “3% handcuffs.” In 2021, home sales in U.S. hit a 15-year high with people securing 30-year mortgages at historic lows of 3% or less. Rates are now 3 to 4 points higher. Most of these homebuyers will not be going anywhere anytime soon. This is a long-term fundamental shift that positions open-air retail as a driving force in neighborhoods for decades to come.