Structural Shifts in the Economics of Place

Over the past decade, secular shifts in consumer spending and behavior have altered the economic role retail plays within mixed-use development. These changes are structural, not cyclical, and have direct implications for how place-based development is planned and underwritten. At the national level, e-commerce has continued to capture a growing share of retail spend, reducing the role of physical storefronts as primary transaction points. While retail remains relevant, its function has increasingly shifted toward brand presence, convenience, and complementarity rather than volume-driven demand. In parallel, consumer spending has steadily reallocated toward services and experiences. This shift reflects a broader change in how time and discretionary income are spent, with implications for visitation frequency, dwell time, and the uses that now anchor real estate performance.