Already a known quantity in the Inland Empire (San Bernardino and Riverside counties) and with current stores in Los Angeles, Orange, San Diego and Kern counties, Stater Bros. is seeking deeper expansion into these core Southern California markets. The retailer established a state-of-the-art headquarters and distribution facility in the Inland Empire in 2008, and now the brand is seeking the opportunity to maximize the output of that facility through growth in volume and sales.

Voit recently assisted Stater Bros. in securing land for two new stores that are currently under construction in Redlands and Riverside Calif.

In addition, Voit is assisting CVS Pharmacy in its current strategy to grow its store count and introduce new-to-market stores in the Inland Empire area of Southern California. The national retailer is actively seeking opportunities to strengthen its position through growth in this area of the country as well.

Overall, many retailers will benefit from the consolidation and mergers/acquisitions we are seeing in today's market. For example, the merger between Office Max and Office Depot will result in vacant retail which can be retrofitted to meet the needs of a growing retailer. The proposed merger between Orchard Supply and Lowes could provide similar opportunities.

While retailers benefit from the recent shift in the market, owners, too, are presented with new opportunities. Landlords are now better able to improve the financial stability of the projects they own. In most cases, rents were lowered during the recent recession to assist tenants in need of rent relief. Today, there is an opportunity for steady rent increases over the next 12 to 24 months, which will allow landlords to recoup costs and build value.

On the investment side, interest among retail buyers remains high. There is enormous competition for quality product throughout California, which is driving prices up, in spite of current low rents. This is good news for sellers, and some owners of retail properties are now taking advantage of the opportunity to dispose of retail product.

Overall, retail is picking up speed on all fronts, and the upcoming ICSC Western Division Conference in San Diego will likely reflect this new direction. At Voit, we've seen a growing momentum over the last two years at ICSC in both San Diego and Las Vegas, and we anticipate that this year's event will be a continuation of that forward movement.

Tom Swieca is a senior vice president in Voit Real Estate Services' Inland Empire office. Contact him at [email protected].