(PASSCO Cos. Is one of GlobeSt.com’s Thought Leaders in conjunction with the ICSC Western Division Conference in San Diego Sept. 19-21. Look for them at booth 1738. For more information on our Thought Leadership program in conjunction with this event, please contact Scott Thompson at [email protected])
One firm that has its finger on the pulse of West Coast retail is PASSCO Cos., an Irvine, CA-based firm with assets across the country. The firm owns assets up and down the coast and further inland in Las Vegas. One of its more notable assets is the Promenade at Howard Hughes Center, a 248,000-square-foot retail-entertainment center just north of the Los Angeles International Airport. The firm is also a fixture at ICSC conferences in Las Vegas, San Diego and other locales. Howard Wong, PASSCO’s director of retail leasing, spoke with GlobeSt.com about how he sees the market in the region.
GlobeSt.com: What are your feelings on the strength of the tenant at this point in 2012?
Wong: Retail tenants’ positions have improved since many have closed their underperforming stores and downsized and increased the efficiency of their operations. Additionally, there has been a slight growth in retail sales overall. However, we also continue to see setback from other tenants that have faced increased competition and less efficiency in their operations causing more store closings.
GlobeSt.com: How is retail real estate performing on the West Coast compared to other parts of the country?
Wong: Our properties outside of the West Coast - from Texas, Kansas City, Mid Atlantic - have been steady for the last couple of years and have experienced growth prior to the West Coast. However, there has been stronger performance overall in our West Coast portfolio primarily in the major markets such as Los Angeles and Orange County. Other centers showing growth are Las Vegas, Phoenix, Central California and the Northwest in Seattle.
GlobeSt.com: Are rental rates starting to improve in your view?
Wong: Yes, rents have shown steady increases since last year and continue to grow through 2012.
Globest.com: What are some retail sectors where you are seeing the most expansion, and are there any tenants you are particularly excited about?
Wong: Fitness, specialty supermarkets, action and specialty sports, new international apparel retailers and specialty niche restaurants. We are excited with a new fast casual pizza concept that lets customers create their own pizza and has been met with similar success Chipotle and has the same elements. It’s high-end pizza at affordable prices and fun for the customers! Some of these new players are Wetzel’s Pretzel Blaze Pizza, 800 Degrees,Pieology in Southern California and Mod Pizza in the Northwest.
GlobeSt.com: What are you expecting from the coming Western Division conference?
Wong: Continued positive feedback from retailers expanding and the opportunity to meet face to face with existing and prospective new tenants, as well as the brokers in our markets.
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