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SAN DIEGO—There has been a noticeable increase in attendance at several recent ICSC events. “Over the years, we have observed a direct correlation between economic conditions and ICSC event attendance.” That is according to Al Williams, principal at Excess Space Retail Services.
Accordingly, in light of California's continued economic recovery, Williams tells GlobeSt.com, “we anticipate that the Western Conference will be a robust show. California's recovery from the great recession has been more vigorous than many other regions of the country and we anticipate its growth will remain strong.”
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When speaking with Patrick Donahue, chairman and CEO of Donahue Schriber Realty Group, in preparation for the upcoming ICSC Western Division event, he agreed that it should be well attended and begin to approach a record year in terms of participation. “The overall retail real estate business is very solid right now as fundamentals in 2014 are much stronger than the high points of 2006 and 2007,” he says. “This rebound is due predominantly to the lack of new supply over the past few years.”
In 2006, he continues, the industry delivered more than 200 million square feet nationally.” Since 2010, we have delivered less than 40 million square feet per year. The supply part of the equation is clearly favorable for anyone with quality shopping centers.”
Additionally, Donahue tells GlobeSt.com, “with the availability of relatively inexpensive capital, our property values and occupancy are both beyond peak levels. We are very bullish on the industry for the next 18-24 months.”
Patrick Luther, managing director of Faris Lee Investments, tells GlobeSt.com that it is pedal to the metal time. “We are all hoping the current interest rate environment, retailer expansion, and cap rate compression either continues or holds. I think we are all curious to learn when the smart money thinks the music is going to stop and think this will be a big topic for discussion at the ICSC Western Division conference.”
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As for the firm's Chris Tramontano, a managing director in Faris Lee Investments' Irvine, CA-office, “the consistent theme amongst the retail investment community for the past several months has been lack of product, abundance of capital (both U.S. & overseas), low interest rates and cap rate compression. With that being said, I'm expecting a very active ICSC show in San Diego.”
Tramontano adds that “pricing is back to where it was in the peak for properties in the more tertiary markets such as Inland Empire and for the Coastal infill LA, OC, SD markets pricing even more aggressive than where we were back in the peak. All of this coupled with positive leasing momentum proves to be a great time if you're thinking of selling. We're looking forward to a very active deal-making/trading floor.”
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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.
