From the landlord's perspective, retail tenants are still consolidating but are selectively opening in the best submarkets and strategic locations. So says ReCon2013 attendee Alan Araki, managing director of investments at Primestor Development Inc.

GlobeSt.com recently caught up with Araki, and other industry sources to discuss where retail is headed and what a few of the hot topics are. According to Araki, one of those hot topics pertains to investment activity.

“Capital from the debt and equity players are looking to be a little more aggressive to invest as the overall lack of new supply has naturally created a demand imbalance for well located and stabilized properties,” explains Araki. “Secondary markets will start seeing more investment activity as pricing and lack of opportunities in the primary markets leave investors empty handed.”

Overall, he tells GlobeSt.com, “capitalization rates should continue to edge lower as the economy continues to improve and the FED continues to help keep interest rates low.”

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ReCon 2013 attendee, Michael J. Burden, principal of Excess Space Retail Services, tells GlobeSt.com that “the retail real estate market has shown signs of recovery and we anticipate it will continue to slowly improve.”

Correspondingly, Burden says, there will be gradual and modest increases in retail market rents reflective of the recovery in the broader economy. “The indications of recovery can be linked to improved consumer confidence as home prices rise and unemployment rates slowly recede,” he explains. “The continued retail real estate recovery will be dependent on the correlation between the strength of consumer confidence and its impact on consumer spending.”

However, Burden does note that the growing consumer confidence may be tempered by domestic political discourse as well as persistent global economic woes. Moreover, he says, the strength of the recovery has varied significantly by geographic region. “Retailer growth, repositioning and expansion will be very deliberate and market sensitive.

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Over at the Lee & Associates' party, Stephanie Skrbin, principal of Lee & Associates L.A. North/Venture Inc., says that “The market has been very strong since the beginning of the year and doesn't seem to be slowing down. Tenants are very active and closing on deals faster than they have since the market crashed, which indicates confidence in the market moving forward.”

For Rick Scardino, director of retail brokerage at Lee & Associates Illinois, “great activity is happening” in his market, with “class-A small shop space being at a premium, and the dearth of junior boxes mostly occupied by the Ross Dress for Less and hh gregg's of the world.”

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He tells GlobeSt.com that “Close to three dozen Applebee's will be hitting the market as the franchisee just filed for bankruptcy, but with many of them well positioned, many will be picked off in time.” Small infill development is taking place in markets with barriers to entry, he adds. He also expects a continued shakeout of the market with leading grocers.

Keep following GlobeSt.com for more coverage from the event as well as more thoughts from industry sources GlobeSt.com caught up with.