Gen Z may be young, but their spending power holds a significant amount of weight. Currently, Gen Z accounts for 5% of spending in the United States, but that number is projected to grow by 17% by 2030. It’s important to capitalize on those spending habits and one way to do so is to evaluate current retail commercial real estate trends.
You may think that Gen Z is ruled by the internet. And in fact, you’d be partially correct. Gen Z does use social media to make purchases, particularly TikTok. The hashtag #tiktokmademebuyit has more than 6.7 billion views indicating that this newest generation is heavily influenced by the internet. But despite this reliance on social media, the newest Gen Z commercial real estate trend may come as a surprise: they still enjoy shopping in brick and mortar stores.
81% of Gen Z consumers prefer shopping in-store. Research shows that Gen Z enjoys the fact that brick and mortar stores allow them to disconnect from their phones for a short period of time. If you’re invested in retail CRE, you need to understand this latest trend and take advantage of the opportunities that are available. Here, we’ll dive into more Gen Z commercial real estate information and discuss how you can leverage that to your advantage.
Understanding Gen Z Spending Habits
In addition to shopping in-store, many Gen Z consumers are also investing more in health and wellness products. Nearly a quarter of Gen Z survey respondents admitted that they were stressed or overwhelmed by the news, so this explains the surge in spending for products and services that will help improve their health.
Gen Z also likes sustainable products. 75% of Gen Z respondents admitted that sustainability was an important purchasing factor for them. That extends to a product’s packaging as well so retailers should also aim to use eco-friendly packaging for their goods. This focus on sustainability also means that Gen Z consumers are thrifty and attracted to discounted retail deals.
What does all of this mean for retail CRE? Let’s explore.
Leveraging Retail CRE Opportunities
If you’re a GP looking for your next opportunity, Gen Z’s spending habits might give you some insight for your next deal. Since so many new consumers are interested in brick and mortar stores, that means there are plenty of retail commercial real estate opportunities. Consider investing in health and wellness retail properties as well, such as vitamin or essential oils stores, or even athleisure retailers. Appeal to Gen Z’s investment in sustainability by offering eco-friendly products, or even discounted deals that pique their interest.
As the holiday season approaches, consider looking into more brick and mortar retail real estate opportunities so you can capitalize on Gen Z spending habits. Also try to find innovative, high-tech ways to capture their attention, such as short videos on social media. Ensure that your social media presence is robust, and a mobile-friendly website is imperative as well.
It’s also important to adopt an advanced software solution to streamline your retail CRE processes. Find an investment management platform that has integrated CRE banking because that will make it easier to automate distribution payments amongst your investors. Those payments can be complex and confusing. Spend your time investigating retail commercial real estate trends instead of calculating waterfall distribution payments.
A comprehensive investor portal is also useful for streamlining your operations. It can allow you to enhance communication between your investors, generate investment reports, and manage important documents.
Covercy Can Help You Appeal to Gen Z Consumers
Our unique software solution can help you leverage the latest technology to capitalize on new retail commercial real estate trends. Gen Z’s spending power is only increasing as time goes on. Covercy is a one-of-a-kind investment management platform that can help you organize your operations so that you can take advantage of the way the newest generation shops.
Take advantage of our advanced platform and appeal to Gen Z spenders with retail CRE investments. Learn more about our solution by booking a demo with Covercy today.