Experts Talk RECon; Ask Not if a Correction is Coming, But When

Ron Meyers, SVP of leasing at Phillips Edison and Co.

GlobeSt.com is providing wall-to-wall coverage of ICSC’s RECon show in Las Vegas May 22-25. Subscribe to the Retail Ticket for pre-event articles, live video interviews on site and post-conference analysis. LAS VEGAS—It is that time of year again and GlobeSt.com ramps up its retail coverage in preparation for RECon, the International Council of Shopping Centers’ sprawling annual get-together. As more than 30,000 attendees prepare to descend on the Las Vegas Convention Center for this year’s edition, GlobeSt.com sat down recently some key attendees and retail experts to discuss some expectations for the upcoming event. Chris Wilson , EVP and southwest retail brokerage lead of JLL , tells GlobeSt.com that this year, he expects to see a high degree of speculation regarding where we are in the real estate cycle. “I expect to hear and be part of discussions that are not if a correction is coming but when,” he says. “I hope to gain some insight as to how hard the landing might be and what may cause the correction.” Jeff Hughes , a managing director at Stan Johnson Co. , is looking forward to several key meetings with longstanding clients as well as getting a sense of what the overall activity level and sentiment is amongst developers and investors. “These large gatherings are an easy way to receive quick feedback on market health while gaining new activity from new clients,” he says. According to Hughes, although retail is seeing high transaction volume, “markets are sending mixed signals with disruptors.” Hughes says that is “possibly because there is an increase of supply or concern about the CMBS markets, and investors are going to give pause with this year’s election.” Ron Meyers , SVP of Leasing, Phillips Edison and Co. , tells GlobeSt.com that through the firm’s 25-year history of building shopping center portfolios, it has deep seeded relationships with many of the retailers who attend the convention. Meyers and his team conduct more than 1,000 meetings each year. “It is always a good time to reconnect with them and provide an update on our growing portfolio and our tenants’ growth plans. In addition, we look forward to developing new partnerships with national tenants that have growth plans that align with Phillips Edison’s strategic business objectives.” According to Meyers, overall, he is seeing substantial interest from retailers. “That, combined with our rising number of new properties and lack of new development in the market, makes our vacant inventory a very attractive way for retailers to meet their aggressive growth plans,” he says. “Also, since the grocery subsector is internet resistant, grocery-anchored retail is a great way for retailers to grow sales and store count without some of the tenant turmoil being seen in the power center sector.” Check back with GlobeSt.com through the month for all the retail news and analysis you need to know as we gear up for this year’s RECon event. Also, keep an eye out for the May issue of Real Estate Forum, which will include a feature about why we can expect more retail bankruptcies ahead, noting that today’s greatest and most secure tenant can be only a year away from extinction if they are not proactive, creative and responsive to the changes in the marketplace.