Adaptive Spaces

The Future Hybrid Store

Integrating Retail and Logistics in an Era of Omnichannel Real Estate

December 8, 2020 2 Minute Read

augmented reality store experience

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The COVID-19 disruption has accelerated the blending of brick-and-mortar retail and logistics real estate. This has resulted in the emergence of a new hybrid store model—one that takes omnichannel strategies to the next level—promising to revolutionize the retail and industrial & logistics industries.

CBRE envisions a hybrid store that allows consumers to engage and purchase seamlessly in-store and online across a wide range of retail categories and product lines. This new model will preserve the store experience for physical shopping while leveraging logistics capabilities for the fulfillment of online sales.

Key Takeaways

  • New Model Emerges: Pandemic-related disruption to retail supply chains and operations has paved the way for a new store model that combines retail and logistics real estate.
  • Fulfillment Requirements Accelerate: Several retailers are now using stores as last-mile fulfillment centers for online orders.
  • Creating a New Asset Class: The integration of retail and industrial real estate is producing a new asset class that includes stores with both physical shopping and purchase shipment services, as well as “dark stores” that provide pickup and shipment services without in-store shopping.
  • Store Valuations Evolving: A new and more sophisticated pricing mechanism is needed to determine the value of stores and retail rents, especially for retailers that have more online channels.

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