Investors in Los Angeles may have heard time and time again that retail is going the way of the dinosaurs. The reality, though, is that retail properties featuring commercial leases are not extinct when it comes to the restaurant industry or the retail food industry. Here is a look at how members of Generation Z — those born later than 1996 — are impacting this aspect of the commercial real estate world.
The oldest of the Generation Zers are currently 22 years old, which means they are beginning to gain purchasing power in the restaurant space. These young people are expected to drive change, with other generations eventually catching on. For instance, they are driving the increased demand for food delivery — specifically, the delivery of food options beyond the traditional cuisines of Chinese food and pizza.
With Generation Zers demanding that more items — including food — be delivered to their front doors, more restauranteurs may need to increase the sizes of their kitchens and reduce their dining areas’ footprints. Furthermore, restaurant owners may build dining rooms that are larger and more community-focused. This may be necessary as younger people decide to go out primarily to enjoy communion with friends and family.
Investors who are interested in purchasing properties featuring commercial leases can certainly expect to do well on the restaurant front. Of course, closing the deal is the first step in owning a potentially lucrative property that will draw in restaurant owners who are looking for leasing opportunities. An attorney can provide the guidance needed to navigate even the most complex commercial real estate transactions so that investors can quickly and efficiently achieve their real estate goals in the Los Angeles area.