The ICSC Blog

E-fairness could lead to more tenants for shopping centers: Panelists


If web-based retailers are required to collect sales taxes the same way their brick-and-mortar competitors do, landlords are likely to have a slew of new tenants to choose from as these chains launch their own physical stores to stay competitive, experts noted at ICSC’s very first SCTLive event, on Tuesday in New York City.

The Marketplace Fairness Act, which would mandate such a change, has already passed in the U.S. Senate and is now before the House of Representatives. Many web retailers are already anticipating the change and adjusting their delivery infrastructure and warehouses accordingly, said Kris Bjorson, international director at Jones Lang LaSalle.“We expect in two to three years to see the same type of demand we’re seeing on the industrial real estate side come to the retail side, because e-commerce chains will have to begin interfacing with customers more directly to stay competitive,” he said.

Huge online retailers such as Amazon.com are already sniffing around shopping centers, said David B. Henry, vice chairman, president and CEO of Kimco Realty. “We expect in two to three years to see the same type of demand we’re seeing on the industrial real estate side come to the retail side, because e-commerce chains will have to begin interfacing with customers more directly to stay competitive,” he said. Huge online retailers such as Amazon.com are already sniffing around shopping centers, said David B. Henry, vice chairman, president and CEO of Kimco Realty. “We’ve all been approached by Internet giants that are looking for a better way to deliver products to their customers,” Henry said. However, renting to such online retailers won’t be fair to existing tenants until the sales-tax imbalance is rectified, Henry said. Amazon and other online chains will get even more serious about moving into shopping centers once their sales-tax advantage is removed, he added.

Originally posted: SCT Newswire

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