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Discount and Luxury Retail Thrive; the Middle Gets Lost

SAN DIEGO—In preparation for the upcoming ICSC Western States dealmaking event here in San Diego, we chat with attendee Jeff Moore, a CBRE senior managing director about a few key trends.

By Natalie Dolce | nataliedolce | | Updated on August 19, 2016
Jeff Moore, a senior managing director at CBRE. Jeff Moore, a senior managing director at CBRE.
SAN DIEGO—Leasing activity remains strong with less big box and large space growth and more demand for smaller spaces. Those thoughts are according to Jeff Moore , a CBRE senior managing director, who chatted with GlobeSt.com in preparation for the upcoming ICSC Western Division dealmaking conference held here in San Diego later this month. “There is an hourglass economy evident in Southern California with both discount and luxury items thriving, while the middle gets lost,” he says. “For example, higher-end sports apparel chains are thriving, while consumers who want discounted sporting goods may look online or to larger discount retailers.” Moore tells GlobeSt.com that he has seen consolidation in this industry sector with Dicks Sporting Goods surviving as the dominant player while Sports Authority and Sport Chalet have closed their doors. “This trend is anticipated to continue as empty boxes are being looked at by retailers who offer goods and services not easily accessed online such as grocers, restaurants and fitness centers.” Furniture is another category expanding along with soft goods retailers and value oriented apparel, he says. “Due to a reduction in competition from large tenants, there may be a short-term softening in lease rates for these sites, however, many spaces will be split up by landlords into smaller units with multiple tenants which should drive rents up.” He continues that “Leasing remains strong for Southern California as it is one of the most in-demand markets in the US with a dense and affluent population combined with increasing tourist numbers.” Keep checking back with GlobeSt.com for more from Jeff Moore as well as from other retail experts as we gear up for the ICSC event later this month.

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