Top Takeaways: ICSC 2018 Western Conference & Deal Making
October 11, 2018
Barry Slatt Mortgage attended the ICSC 2018 Western Conference and Deal Making and here are our top takeaways from the event.
- Retail is not going anywhere, it is adapting. The retail space is going through a revolution and many feel this is just the start of the transition.
- 90% of all retail transactions are still being executed within brick & mortar shops.
- Destination and entertainment oriented retail are still a major focus of landlords.
- Tenant activity continues to be very strong with many new concepts coming to market. Restaurant tenants continue to be in great demand.
- ICSC 2018 revealed that the end of the checkout counter is near. Tenants are working to reduce lines and expedite the checkout process to make shopping simpler. We will continue to see an increase in self-checkout, but that process is already being taken to the next step. Checkout-free systems are already being implemented in Amazon Go stores in select markets. Other retailers such as Walmart and Kroger are working on implementing similar technology.
- Recent rate increases have many investors, developers, and brokers chattering about a gradual turn in the market. These professionals see a near-term rise in cap rates for specific markets such as single-tenant retail.
- New and younger developers are coming into the market. This next wave is positioned to promote positive change in the retail space.
- Lenders in attendance are still bullish on well-located multi-tenant anchored retail properties, single-tenant properties with long-term credit leases, and very strong franchisee single tenant properties.