Experts Talk ICSC Western Conference; Experience Is the New Paradigm

Allen Ginsborg, managing director and principal of NewMark Merrill Mountain States.

Part 1 of 2 SAN DIEGO —“Traditional brick and mortar retailing is undergoing the greatest period of creative destruction in my 34-year career within the shopping center industry.” Those thoughts are according to Allen Ginsborg , managing director and principal of NewMark Merrill Mountain States . In preparation for the upcoming ICSC Western Conference , held at the end of August, we chatted with Ginsborg, among others, about the retail market and what is on the horizon. “Traditional fashion retailers are being routed by new millennial preferences and priorities that favor online shopping and fast fashion found at H&M, Zara, Forever 21, UNICLO and others,” he says. “’Foodertainment’, exemplified by consumers’ appetite for eating out three to five times a week has created a boom in fast casual dining concepts, which when combined with cushy new reclining seat theaters, modern bowling alleys and other activity based retail is creating thriving centers that no longer require traditional grocery or department store anchors.” And judging by the explosive growth in craft brewing, “we’ll soon be drinking more beer than water,” Ginsborg says. “As these trends ’round’ us out, health clubs are expanding at a tear to help us fit into the latest fast fashion being delivered by UPS.” But retailers and owners are adapting. “Retail is now as much about having memorable experiences as purchasing merchandise, which is why I expect the upcoming Western States ICSC conference to focus heavily on retail projects that create unique customer experiences through merchandising, events and social media.” At this year’s ICSC West Region Conference, Sam Alison , regional director of the west for Stan Johnson Co. , expects to see many tenants looking for opportunities to open new stores and developers looking for sites to accommodate the tenant demand.  “It will be a very robust conference with love, happiness, and excitement throughout.  Currently, the West Region has the greatest demand for retail expansion in the US, but is lagging other regions for new construction of retail developments,” he tells GlobeSt.com. “The future of retail real estate is in a state of evolution,” says Grant M. Gary , president of brokerage services at the Woodmont Co. He tells GlobeSt.com that “as millennials continue to increase their purchasing power, the consumer shopping profile continues to change. Although almost overused today, ‘experience’ is the new paradigm.  Brokers, owners and retailers are all focused on improving or creating experience within their shopping venues and within their retail stores in order to capture the attention and disposable income of today’s customer.” He continues, “As we approach San Diego ICSC,  with South California being one of the incubator cities for new fitness and restaurants concepts, I expect to see these trends on full display in the deal making sessions as brokers and developers via to capitalize on these growing trends.” And Patrick Galentine , EVP of Coreland Cos. , tells GlobeSt.com that ICSC Western Conference always comes at an important time of the year. “It is an opportunity to gauge how the year will close and determine the strength of the market going into 2017. We expect to connect with a number of our industry colleagues, from investors to retailers, to better understand market expectations.” Check back with GlobeSt.com in the next few days for more forecasts from industry sources on all things retail and what type of concept is in rapid expansion mode.