Retail dealmakers and industry experts came together this week at the ICSC@WESTERN conference in Palm Springs, California. Slatt Capital team members were among the attendees digesting insights from dozens of insightful panels spread across the 3-day event. The following is a selection of our key takeaways from the event. - While attendance was down slightly from previous years, the general consensus was that the core group of brokers, developers, tenants, lenders and service providers that attended found it very valuable. - Retail remains a very desirable asset class from institutions and individual investors alike. The struggles of aging malls and e-commerce and the storms of the pandemic are in the rear-view mirror as retail has emerged as a survivor asset class. - Several local and national legislative issues threatening the retail sector, including increases in minimum wages for retails, additional environmental regulations at the property level as well as throughout the retail logistics sector, and underwriting for “political risk” of all types are affecting some markets more than others. - There is some early but shared concern over property expenses such as real estate taxes and insurance and the ability for some tenants to continue to weather increased costs. Some early distress in reimbursements and CAM charges can be seen along the margins. - Institutional interest in retail is expanding into smaller properties, such as portfolios of single-tenant assets and individual unanchored strip retail investments nationwide. - Tenants are unafraid to experiment with new concepts and abandon old business models in the face of new data or consumer trends. Adaptability is enabling survivorship and thriving, while those who are slower to adapt are materially behind and more vulnerable to headwinds. - Lending for the sector is plentiful, and terms are improving. Several investors commented on receiving interest rate spreads that rival the bottom of the market in 2021 and any further downward movement to US Treasuries should spur additional investor interest at lower coupon rates. - The retail movers and shakers are a largely aging population but there is more confidence that the younger folks that are ready to step in are sophisticated and any generational transition should be successful. Cody Charfauros Principal | Managing Director D: 858.257.2110 codyc@slatt.com
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I build & run real estate portfolios. Licensed in Illinois, based in Chicago, operating nationally.
With ICSC's biggest event of the year around the corner, the country's top talent in #RetailRealEstate will be meeting to network and shake hands on new deals. One topic, expected to be top-of-mind, is the #Retail inventory shortage, which has led to stable and growing rents in most markets, across the country. Like with the #NationalHousingShortage, this shortage in retail began about 10/15 years ago when direct-to-consumer shipping became a major competitor and disrupted the traditional retail model. Since that period, there has been less retail #development, which has led to today's shortage of inventory. While the number of buildings may change, the one thing that has held true, is that the consumer will have a certain proclivity to shop in-person. As #RealEstate people, how do we absorb this information and service the operators in a meaningful way? #CRE #CommercialRealEstate #Markets #Capital
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Last week, Eoin Conway our Managing Director took part in the panel discussion 'Reshaping Retail Real Estate' at the FRP Advisory Retail Conference 2024 'What's in Store?' In addition to this panel, the exciting day was full of engaging, insightful and thoroughly interesting discussions around the future of the retail & property markets. There was overall positivity in the trend by retailers of increasingly seeing the value of physical stores. With this occupier led positivity then creating the knock on effect of increased confidence in the market from investors, and lenders. "For retailers to prosper, engagement and communication is key. With their consumers, their advisers, and their landlords. It is key for us as asset managers to drive this engagement and ensure that the centre under our management works for the occupiers, and importantly for the local community and consumer. It is also key for us as property managers to work hard to make a safe, secure, affordable, and sustainable property that occupiers want to occupy, and people want to visit. Nobody wants high streets or centres that do not thrive." Said Eoin #conferences #FRPAdvisory #Estama
🛍 Our inaugural retail conference, 'What's in Store?', brought together a dynamic panel of industry experts to delve into the ever-evolving world of retail. From tackling current challenges to uncovering exciting new opportunities, the event sparked insightful discussions and forward-thinking ideas about the future of retail. Click here to read our full insights from the day - https://lnkd.in/eN3ibaSR A snapshot of our sessions: 💡 Reshaping Retail Real Estate - Edward Horn-Smith, Tony Devlin, Christina Beggan, Eoin Conway, Philip Reynolds, Ian Corfield 💡 Reimagining Retail: Managing cashflow for success - Jim Davies, Justin Matthews, Richard Sanfourche, Tom Rees, Ben Hughes 💡 Panel Discussion: The Future of Retail - What’s in Store? - Camille Perry, Rob Feldmann, Huw Crwys-Williams, Steve Baluchi, Tony Sturge 💡 Retail and recovery: A guide to lending in the sector - Mike Davison, James Tarleton, Dan Edgar CFA, Dave Edwards, Alastair Massey 💡 Realities of retail: Examining fraud risk management - Molly Sandquest, Jonathan Wheatcroft, Harriet Campbell 💡 Panel Discussion: In conversation with the FRP retail team - Philip Reynolds, Alastair Massey, Laura Dymott, Tony Wright To all of our speakers and attendees – your active participation in the discussions, workshops, and networking sessions throughout the day added huge value, and we hope you walked away with valuable insights and connections. We look forward to welcoming you again next year! 👋 #event #retail #FRPRetailConference #sectorseries
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Join us for an exclusive conversation with Peter Maggio, EVP and Chief Revenue Officer of #ShopcoreProperties! Peter breaks down why it's an incredible time to be in retail real estate and shares valuable advice for industry newcomers about the power of relationships. These insights come at the perfect time as we connect with partners and industry leaders this week at ICSC New York. See you tomorrow for Day 2! #SeizeTheDeal #ICSC #ICSCNewYork #Retail #CommercialRealEstate #RetailRealEstate #CRE Wesley S.
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National Manager of Retail Research at Colliers | RETHINK Retail Top Retail Expert | Blending curiosity and fun in every pursuit!
What’s your biggest takeaway from this year’s ICSC NEW YORK conference? Let’s discuss it! 💭 Here are some of mine: 📈 Record-low retail space availability is driving rent growth. 🏙️ Gateway cities attract well-funded brands, while secondary markets offer opportunities for experienced players. 🏬 Flexible strategies are key as retailers adapt to tighter markets. 📊 Advisory support is critical for making informed decisions on where and how to grow. 🌟 With creative reuse, untraditional formats, and innovative growth strategies, the retail landscape is brimming with opportunities heading into the new year! #ColliersRetail #RetailinRealTime #Retail #ICSCNY2024 #CommercialRealEstate #RetailTrends #Innovation
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Market Tales: Central Virginia Listen as Ricky Read, from CBC Read and Company, discusses the current trends in Central Virginia Market including the growth around Liberty University, innovative QSR deals, and their auction business. 🔗 https://lnkd.in/evegHuHT
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Tanyard Advisory, Retail and Sporting Goods consulting and Fidelio Partners, Building Better Boards
In my first thought piece for Fidelio we look at retailers' exposure to property, whether its time to change tack and whether Boards have the experience in property and logistics to support company strategy in this area. - Retailers have been disinvesting form property for the past decade, and this has probably been the right thing as online penetration rose, rentals fell and yields rose. Most retailers have churned and right-sized portfolios well. - However online migration has stalled, rentals are starting to rise and yields starting to fall as M&A returns to the property sector. - The main area of fixed asset investment has tended to be in logistics. - Retailers balance sheets have strengthened and their cost of capital is probably lower than many landlords, so L-T leasing of key sites probably makes little economic sense. - Are Boards equipped to lead this change? Our analysis of the boards of 19 leading UK/European retailers brands and retailers show plenty of retail experience but very little in property or logistics, so it is not obvious that many Boards are best structured to support a change of strategy in this area. Click the link below for the full report and we would be more than happy to engage on this subject.
Times change. Problems are addressed. New challenges arise and some challenges return. But do Boards and Board composition keep up? In this Overture, Fidelio’s Simon Irwin, considers the composition of retail Boards across the UK and Europe. Drawing upon years of insight and experience as a leading equity analyst, he concludes that the 10-year process of retailers disinvesting from property may be about to reverse, and asks the question do Boards have the necessary skills to support a change in strategic direction. To read Fidelio’s full Overture on 'Are Retail Boards Equipped to Manage Their Property and Logistics Exposure?' please click the link: https://lnkd.in/eMVPkmJX #Boardcomposition #retail #board #property Simon Irwin Gillian Karran-Cumberlege Mark Cumberlege Ben Rutter Milly Norman Khadija A. Luciano Dutra Zampieri
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Grow your knowledge! Marcus & Millichap's 2024 Retail Trends Webcast is a great example of how you can sharpen your axe and continue learning. I encourage all, whether in retail real estate or not, to consider attending the webcast June 13th to hear the wisdom of StripMallGuy, John T Chang, R. J. Hottovy, CFA, and Daniel Taub Come one, come all! https://lnkd.in/gzseG7M5
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Join us for an engaging panel discussion featuring industry leaders as they delve into the latest trends, market insights, and investment opportunities in the retail real estate sector. Whether you’re a seasoned investor or just curious about the market, this webcast is a must-attend event. Don’t miss out on valuable knowledge and networking opportunities! Reserve your spot today with the link below! #cre #commercialrealestate #property #investments #retailtrends #retail #webcast #research #marketupdate
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As Christie & Co looks into the new year, the #petrolstation & #convenience retail sectors continue to demonstrate strong, UK-wide demand from buyers. Anthony Meadowcroft has created this Blog discussing why now is a good time to invest or indeed sell!
In his latest blog post, Anthony Meadowcroft, Senior Business Agent - Retail, discusses the latest retail market landscape, and what to consider if you're buying or selling this year. To read the full blog post, click here: https://lnkd.in/eCcCuPVg #retailinvestment #forecourts #conveniencestores #commercialproperty
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