Shopping, Dining & Entertainment

Discover How REITs Benefit the World of Retail

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What is a REIT?

A REIT or Real Estate Investment Trust is a company that owns, operates or finances income-producing real estate. Established by Congress in 1960 and modeled after mutual funds, REITs provide all Americans the opportunity to invest in large, diversified portfolios of income-producing real estate in the same way they typically would invest in other businesses, buying stock either directly or through mutual funds. REITs help communities grow, thrive and revitalize.

Learn how REITs impact shopping, dining and entertainment.

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Retail REITS

Next time you make a shopping list, there is a good chance you will be heading to a REIT-owned property to purchase what you need.

Retail REIT-owned properties run the gamut of shopping experiences from grocery anchored shopping plazas and outlet centers to local malls and modern shopping/entertainment destinations.

Click below to add a property:

Retail REIT Ownership

Regional Shopping Malls 530

Community Shopping Centers 3,000

Restaurants 4,700

Retail Facilities 20,000+

Choose a shopping option to add:

Grocery Store

Regional Mall

1.

Shopping

Whether you need to pick up a quart of milk for breakfast or want to find the perfect anniversary gift for your spouse, chances are you can find it at a REIT-owned property near you. REIT-owned retail real estate provides consumers convenient access to necessity-based goods and services like groceries and medicines, as well as a range of luxury and discount merchandise.

Consumers average 1.5 trips to the grocery store per week, the most frequent retail destination in the U.S.

Brick vs. Click

More than 93 percent of all retail sales are made by retailers with a brick-and-mortar presence.

Brick-and-mortar retail also provides jobs and generates economic activity in the local communities as well as providing significant support to local charities.

Shopping Facts

Malls and shopping centers often form the center of local communities and serve as gathering places and destination points.

REITs own more than half of all the malls in the U.S., including the majority of the highest-quality malls. Source: Green Street Advisors

As more retailers embrace the omnichannel sales distribution model, the real estate that REITs provide will continue to play a vital role in bringing consumers the goods and services they need.

Choose a dining option to add:

Restaurant

Coffee Shop

2.

Dining

Whether you are looking to grab a quick bite or celebrate an important event, REITs own the real estate occupied by restaurants capable of satisfying any appetite. Dining continues to be an important and evolving category within retail, especially as experience-based options become essential in attracting consumers.

From 2015 to 2016, for the first time in history, Americans spent more money per month at bars and restaurants ($54.9 billion) than they did on groceries ($52.5 billion). From '15-'16, Americans spent more per month at bars and restaurants ($54.9b) than they did on groceries ($52.5b).

Top 10 restaurant chains

By number of locations

Subway 26,744

McDonald's 14,155

Starbucks 13,172

Dunkin Donuts 8,828

Pizza Hut 7,689

Burger King 7,161

Taco Bell 6,278

Wendy's 5,739

Domino's 5,371

Dairy Queen 4,517

SOURCE

Retail REITS often own the real estate leased to these and other restaurant chains.

Restaurant Facts

29 percent of millennials say they buy brewed coffee at least three times per week, 51 percent go to a bar at least once a week and 54 percent eat out at least three times a week.

The fast-casual industry grew by 550 percent from 1999 to 2014. By 2020, the fast-casual market in the U.S. is expected to reach $66.9 billion, according to the market-research company Technavio.

REITs own more than 6,400 stand-alone restaurant properties in the U.S. (not counting restaurants and food courts within malls).

Choose an entertainment option to add

Movie Theater

Bowling Alley

3.

Entertainment

Attracting shoppers to a mall, shopping center or other retail outlet is not as easy as it once was when bricks-and-mortar retailers were the only game in town. However, entertainment and experience-based retailers are occupying more space than ever before and providing something that consumers cannot get online.

Retail REITs are on top of changing consumer trends and providing the necessary real estate to entertain any audience.

Experiences can be wide-ranging:

Personal services such as nail and beauty salons.

Health and fitness facilities such as yoga, massage and meditation studios and traditional gyms.

Bowling, golf and other sport-themed activity

Cinemas and theaters

Art galleries and stores

Amusement parks, water parks, ski resorts and other destination-based activities.

Entertainment Facts

While e-commerce continues to be a growing part of the retail landscape, mall and shopping center REITs are offering more experiential-based options to attract customers to their brick-and-mortar locations.

Many retailers, recognizing the need to offer hands-on, authentic experiences that will draw shoppers into their stores are adapting their store formats in order to do so.

REITs own more than 1,100 entertainment-based properties in the U.S. (including amusement parks, movie theaters, health clubs, ski resorts, golf centers and more).

Choose a mixed-use option to add:

Apartments

Offices

4.

Mixed-Use

Retail REITs are increasingly involved in large, mixed-use development projects. Mixed-use real estate projects typically involve the planned integration of two or more property types including retail, office, residential, hotel or leisure. The projects embody the real estate concept of a live-work-play environment.

Mixed-Use Case Studies

Taubman Centers’ City Creek Center transformed downtown Salt Lake City and helped realize the vision of community leaders. City Creek Center Case Study

Forest City Realty Trust turned an expanse of decaying industrial facilities in southeast Washington, D.C. into The Yards, a thriving mixed-use project that has helped revitalize that area of the nation’s capital. The Yards Case Study

Cedar Realty Trust is combining two existing shopping centers to form a new mixed-used hub in Philadelphia at South Quarter Crossing. South Quarter Crossing Case Study

REITs Help Keep the Retail World Selling

REITs allow anyone to invest in portfolios of large-scale properties the same way they invest in other industries—through the purchase of company stock. REITs own a wide range of real estate ranging from office buildings and shopping malls to cell towers and data centers. REITs own property across all 50 states and provide a significant impact to the national economy and local communities. REIT-owned properties not only help enhance the quality of life in the surrounding communities but they have also provided new jobs, better infrastructure, increased economic activity and other improvements. Learn more at thereitway.com

Copyright® 2020 by the National Association of Real Estate Investment Trusts (Nareit)
Sponsored by the National Association of Real Estate Investment Trusts®, the worldwide representative voice for REITs and listed real estate companies with an interest in U.S. real estate and capital markets. All data is sourced from the “Economic Contribution of REITs in the United States,” EY study sponsored by Nareit, SNL or Nareit unless otherwise noted.

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