GlobeSt.com is providing wall-to-wall coverage of ICSC's RECon show in Las Vegas May 19-22. Retail Ticket will provide coverage of the event through the end of May, featuring pre-event articles, live video interviews on site and post-conference analysis. Contact Scott Thompson at [email protected] about how your firm can participate.
For another installment of our Thought Leadership program for the upcoming RECon show this month, we spoke to Dan Sheridan of Irvine Co. (RECon booth S510W), one of the largest retail owners in Orange County, CA. Sheridan, who is president of retail properties for the firm, told us about the regional trends he sees and how retail tenants are holding up in this environment.
GlobeSt.com: So how is Orange County doing economically?
Dan Sheridan: You're starting to see some good positive trending on the key economic indicators. Employment is up in Orange County. Foreclosures are down, and home sales are up. Construction spending is expected to be up in 2014, which is good for employment. Sales at our shopping centers are reflective of this same positive trending. We're up across our portfolio anywhere from 5% to 10%. We're cautiously optimistic and look forward for this continuing.
GlobeSt.com: What is the state of the tenant right now? What are you seeing expanding in the retail sector?
Sheridan: We are definitely seeing food concepts expanding. With the home building trend, you're also seeing some positive trends in home goods. People are buying furniture and appliances again, so we're seeing expansion there as well.
GlobeSt.com: What do you think the mood will be like at the convention, and what are your expectations as a firm?
Sheridan: The mood is going to be positive. You've seen some good, positive sales trending over the last couple of years. We might see that slow down a bit, but there will still be positive trending in 2014. I think tenants are going to come in with a positive attitude and are very focused on being in top-quality centers. That describes our portfolio in Orange County, and it is a good market to be in.
We're going to focus on new and unique food uses. We really think the food category brings the entertainment component . Entertainment and food bring a holistic shopping experience to our centers.
GlobeSt.com: Do you see any challenges on the horizon?
Sheridan: The ongoing challenge for the neighborhood and community center portion of our portfolio is the small-shop space. The operators with small-shop space, the “mom and pop shops,” have been the slowest to recover. They just don't have the access to capital. It's a challenge for anyone in the neighborhood and community space. It really has compelled us to focus on different types of uses. We've done three deals in the last 12 months with Montessori schools. They have been great additions that bring people to our centers on a daily basis. We're looking for more and different kinds of uses.
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