Top Takeaways: ICSC 2018 Western Conference & Deal Making
October 11, 2018
- 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.
- The end of the checkout counter – 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.