Lower Retail Rates Prompting 59% of all U.S. Retailers to Open More Stores

---

According to CB Richard Ellis' (CBRE) second annual "Shop Talk - A Retailer's Perspective" survey, 59% of U.S. retailers plan to open more stores due to the attractive rental rates available in the current market environment.

The report also finds that 93% of the retailers surveyed are using social networks, such as Twitter and Facebook, to assist with the branding and marketing of their products, up from 70% a year ago.

"Our survey shows a significant number of retailers will be taking advantage of an opportune time for growth due to compelling rent levels--luxury goods, wholesale clubs and discounters in particular are expected to continue to expand," said Anthony Buono, Executive Managing Director of CBRE Retail Services in the Americas. "Additionally, the growing utilization of social media significantly underscores the increased desire of retailers to be as 'plugged-in' as possible to the wants, needs and desire of their target consumers."

The consensus outlook among retailers has turned more cautious with regard to the current economic environment. Only 27% of retailers in 2011 viewed the economy as improving as compared to 35% last year. However, 45% of retailers view the economy as stable compared to 35% last year, with 27% of retailers feel that the recovery has already occurred within their market segment.

Other findings in the report include:

• Ninety four percent of retailers have been able to negotiate tenant improvements in their leases, including landlord financial contributions toward building out their space, the term of the lease and the rights to terminate early.

• Some of the risks that retailers cited as possibly impacting their businesses included unemployment (80%), the state of consumer confidence (79%) and higher food and energy prices (68%).

• As of the first quarter of this year, e-commerce accounted for 4.5% of total retail sales, according to the U.S. Department of Commerce. Despite the growth in online sales, traditional shopping is still favored by consumers, according to the International Council of Shopping Centers (ICSC). Over the long term, it is expected that both online and traditional retailing will be part of retailers' strategies, providing complementary shopping experiences for consumers.

---