Canyon Partners Real Estate LLC, Ascendant Capital Partners and Bond Companies have formed a joint venture to support the development of Inspire Sonoran Desert, a 560-unit, Class A multifamily community in the North Valley submarket of Phoenix. Kennedy Wilson provided the JV with a senior construction loan of an undisclosed amount.

North Valley has experienced rapid growth in recent years, following TSMC’s announcement to build a multi-phase semiconductor plant in the submarket. Inspire Sonoran Desert will be one of the closest communities in the market to TSMC.

Inspire Sonoran Desert marks Canyon’s ninth investment in the Phoenix area over the past five years. Canyon has been an active provider of debt and equity in Arizona and continues to invest in real estate projects in primary and secondary markets across the U.S. For Kennedy Wilson, the construction loan is the latest in an active year for its debt investment platform.

When e-commerce and online ordering started gaining traction, some said this would mean the end of in-person shopping, putting brick-and-mortar stores at risk. And when the COVID-19 pandemic shut down the world, fears emerged that physical retail was doomed.

None of that has happened. Physical retail is stronger than ever, with shoppers indicating a preference for in-person versus online shopping. But retail has had to adapt, and according to a JLL article, “Prepare Yourself for the Future of Retail,” that adaptation will continue.

So, what is retail’s future? As part of its Future Vision program, JLL conducted interviews, held workshops and spearheaded brainstorming sessions to consider what might happen. The result of all this included the following.

A Pickup in Drone Deliveries

Walmart is experimenting with autonomous technologies by using drones to deliver products to consumers within a 10-mile radius of stores. The retailer plans drone delivery to 75% of the regional residents. Meanwhile, Starship Technologies’ autonomous robots have made over six million deliveries in the United States, United Kingdom, Finland, and Estonia.

But this is just a start. “Consumers of the future could make fewer trips to the store, as intelligent robots take on many of their shopping duties,” the JLL article said. The technology is already in place, as smart refrigerators track food inventory and generate shopping lists for needed items.

Shopping Merges Digital, Physical and Hybrid

Consumers will continue to visit physical stores for experiences. The JLL article said that this could be augmented by technological actions like shoppers trying on clothes virtually through mobile devices and VR headsets. Though such applications are still in the early days, “retailers may want to engage technology providers today to develop relationships for the future,” the article advised.

More Accurate Site Selection

Most retailers depend on putting their physical stores in the right location. But deciding where that location is consists of guesswork along with data. The JLL article foresees the advent of more sophisticated forecasting tools, which means “retailers will be able to make more accurate site selection decisions and avoid unnecessary store closures.”

Additionally, new AI tools could make it easier to tailor store designs to the communities in which these stores are based. “By combining data around shopper lifestyles, walking habits, psychographic profiles and more, retailers may become big data scientists, able to adapt offerings to meet consumer needs,” the article said.