Apocalyptic fears of e-commerce’s perceived destruction of traditional retail have caused many commercial real estate investors to pull back from traditional retail properties. Meanwhile in the most significant retail trend reversal,an e-commerce giant has doubled down to open brick and mortar retail stores.
Amazon – yes that Amazon -- the world’s largest internet revenue generating company, is leading the way to open store pick-up locations. Along with traditional retailers such as Target and Walmart, Amazon in their unique way is capitalizing on the consumer’s preference to purchase via mobile app while offering a safe and secure pre-packaged pick-up location as an alternative to home delivery.
As a result, Amazon has become more than a player in urban retail as it now anchors properties all on its own. One of the newest is the 3,300 square foot Amazon Locker Store at the University of Maryland, College Park, replete with in-store lounge and strategically positioned at the base of a new 418-unit student housing development called Terrapin Row. Amazon is counting on most of the 1,493 Terrapin Row residents and 39,000 total UMD College Park enrolled students to qualify for discounted Amazon Prime memberships and accompanying free shipping. Amazon Locker Store with its accompanying new Terrapin Row retail tenants Dunkin’ Donuts, Wings Over and other restaurants, have entrenched themselves with ten-year traditional triple-net retail leases, with renewal options and annual rent increases.
As the trend for online purchase coupled with in-store pick-up continues, including Starbucks, Whole Foods and more, retail and e-commerce may be on the path to successful coexistence.
The owners have engaged investment sales firm Neuman Commercial Group to sell the fully leased 11,200 retail property. “Amazon as a retail store anchor is a timely real estate concept, “stated Gil Neuman, Principal of Neuman Commercial Group. He added: “We expect significant investor interest for this irreplaceable real estate with its intrinsically ‘e-commerce-resistant’ tenant line-up.”
Terrapin Row is across the street from the over 3,300 students living in the University’s South Campus Commons and South Hill communities. Area population includes 24,800 residents living within a one-mile radius and 199,400 residents within three miles. The University ofMaryland, College Park is the State’s flagship university, with students from 36 states and 49 countries.
