CHICAGO—At Marcus & Millichap's CRE Forum in Chicago last Thursday, held at the Mid-America Club in the Aon Center, a cross-section of experts got together for a midday panel on what we can expect this year from the region's retail sector.

Moderator Steven Weinstock, vice president and regional manager, Marcus & Millichap, pointed out that just one year ago, much of the talk about area retail revolved around the exit of Dominick's from the market. He asked the group where things stood now and what to expect in 2015.

Most seemed to feel the market hadn't missed a beat. Mike Drew, founding principal, Structured Development Corp., recently launched the massive, $260 million New City development at North and Clybourn, and pointed out that Mariano's, the long-delayed project's anchor tenant, signed this lease, its first in Chicago, back when New City was first unveiled before the recession hit. Bob Mariano, the grocery chain's leader, had recognized what others “were missing in the market.” And now that the recession is over the chain is ready to fill in the gaps.

When they first began discussions about opening at New City, Drew asked Mariano whether or not he was worried about competition from the Whole Foods nearby on Kingsbury Ave. But Mariano had replied that he saw Dominick's and Jewel-Osco as his main competition, not Whole Foods. The lesson drew has taken from the past few years is that for every grocer that fails like Dominick's, several others will move in to take their place with more innovative venues that better meet modern customers' expectations.

In addition to Mariano's, he pointed to new retail specialists like Plum Market that have also brought organic, natural foods to the market. “There will always be grocery stores; there will just be different players.”

Andrew Hochberg, chief executive officer of Next Realty, LLC, agreed that the market will continue to transform. As reported in GlobeSt.com, Next Realty recently purchased The Shops at Flint Creek, a 59,324 square-foot center located at 500 North Hough St. in suburban Barrington anchored by Heinen's Fine Foods, another relative newcomer to the area. This was the first Illinois store for the 90-year-old, family-owned, Cleveland-based company. Heinen's subsequently has opened three additional stores in suburban Glenview, Bannockburn and Lake Bluff.

Hochberg added that there was also something to be said for the local operator that takes care of its employees and buys its own produce from other local providers. Next Realty, for example, also recently acquired Stony Point Shopping Center, a 72,719 square-foot center in Richmond, VA. It has Good Foods Grocery, a local operator featuring specialty offerings and organic products, as one of its largest in-line tenants.

Buying centers anchored by such local operators might be a little more risky, and harder to flip quickly, but properly run, these types of stores are what customers now want. “We're looking at these as long-term investments; on a risk-adjusted basis, they could be good deals.”