jump to navigation

Optimism at ICSC Retail Convention May 25, 2011

Posted by Erik Swanson in Articles, Blogs, Development, Retail News.
trackback

We’ve just returned from Las Vegas where we, and roughly 35,000 others, attended the ICSC Global Retail Real Estate Convention or “RECon”.  The mood was upbeat and energetic and we were pleasantly surprised with the level of activity. We had a busy schedule packed three days with meetings, parties, and dinners that included prospective buyers, developers and property owners large and small.  The consensus; while it’s not a normal deal making environment, there’s a cautious optimism that things will continue to improve in the retail real estate retail sector.  A couple of takeaways from the convention:

  • Secondary markets will see increased capital as investors seek yield. See Shopping Center Today News RECon recap here.
  • Retailers will speed up expansion through 2012. See GlobeSt.com’s report from RECon here.
  • Institutional buyers awash in cash will continue to compete for Class A properties keeping cap rates low for quality product.
  • Redeployment of capital – Many owners are contemplating selling now before cap rates increase with looming inflation.
  • Tenants still have plenty of leverage and benefit of choice. See the RetailTrafficmag.com article:  Landords, Tenants Jockey For Position in Lease Negotiations.
Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: