LAS VEGAS-GlobeSt.com caught up with Steve Winger, CEO of EverestAuctions.com to discuss his predictions for the shopping center industry as part of our ICSC RECon 2013 coverage. Below are some of the highlights of his predictions.
*Increased retailer appetite for key sites
According to Winger, the increased appetite will drive increased leasing activity. “New shopping center deliveries are non-existent in many metropolitan markets so there is an increasing demand for well-located properties from existing retailers—who need to grow or maintain market share.” He adds that the result is downward pressure on vacancy rates and upward pressure on rents, “which serves as an impetus for developers—who can arrange financing—to build which, in turn, increases supply—and ultimately drives down rates to equilibrium and the cycle repeats.
*Older enclosed malls will continue to suffer
This point is due to continuing expansion of online retailing where we can buy anything with a mouse-click, says Winger. “Brick and mortar shopping centers will have to offer a shopping “experience” to compete—dining, concierge services, entertainment (not just movie theatres), high-touch customer service, etc.”
*Repurposing existing centers will escalate
“Malls will turn to medical (aging population) and larger general merchandise stores with a variety of goods and services will repurpose into smaller stores with enhanced customer service,” he says. “Would you rather buy a computer at Best Buy or Apple?”
*Technology will change everything
The technology Wilson says will “change everything” refers to targeted cell phone ads like the ones Vons is already doing it for loyalty members, click-to-purchase cell phones, Square D, augmented reality, customer tracking, and online leasing.
*Expand on the margins but contract in the middle
He points out that the high-end stores such as Tiffany, Versace, etc. and discounters like Wal-Mart and Costco, for example, will prosper. “Middle-of- the-roaders like Kohl's, Sears, JCP, will suffer,” he says. “Two factors to consider—diminishing impact of middle class and requirement to escalate customer service.”
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.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
