LAS VEGAS—“This is the largest brainstorming session for our industry.” That is according to Kevin Zak, a principal at Dorsky + Yue. He tells GlobeSt.com, in preparation for the upcoming ICSC RECon conference that individually, his firm is engrained in what its clients are doing on a daily basis, but this conference presents an opportunity for all retail real estate professionals to gather under one roof to collaborate and get a pulse on what is unfolding across every aspect of the industry.
In recent months, Zak continues, the industry has been hit by a string of retail closure announcements, but he says that these challenges will pave the way for great opportunity. “We expect discussions to focus in on how to be more creative about redeveloping spaces, exploring more re-tenanting of spaces and a continuation of realignment in how e-commerce and brick-and-mortar come together in a way that serves the purpose and interest of the customer.”
Ron Goldstone, SVP of Farbman Group, is looking forward to the upcoming event as well. He tells GlobeSt.com that he expects the event to be a reasonably positive show. “The economy is certainly holding its own, and expectations are more positive than negative.”
And Chris Sands, founder of Sands Investment Group, tells GlobeSt.com that when you look at the net lease space, there is a tremendous amount of stability in the asset class that continues to drive market velocity.
Sands tells GlobeSt.com that “When we are at the conference we're engaging in new conversations with clients in regards to what is happening now and where the market is going. Coming into the conference we've been experiencing a slight disconnect between buyer and seller's expectations. So we will look forward to creative conversations with both sides to manage those expectations.”
As for what Sands is most looking forward to at the event? “Our firm has evolved and now when we attend RECon we meet with a much greater diversity of client base from institutional to private capital. So we get to hear from every angle on how people are making moves in the net lease space. Some firms are selling big box assets. Private investors are still looking to deploy capital for wealth preservation by acquiring long-term net lease investments.”
He adds that “Developers are looking for guidance on how we price a deal today to ensure the best exit strategy. Family offices are looking for long term opportunistic wealth management options. When you hear from so many different perspectives in the market you can share with other clients and then advise on the best approach – from a more holistic perspective.”
As for what Sands thinks will be the main buzz at the event? He says that the two biggest issues will be retailer bankruptcies and downsizing of big box retailers. “Plus as interest rates change it will impact how we deliver on our client's business plans. As we anticipate a shift in the market cycle, we have to be cautious in our pricing and projections.”
Sands continues that “there will also continue to be interesting buzz about the impact of big box closures on retail and subsequent alternative uses. However we see a lot of value add opportunities being created because of the closures and future use options. Where we are in the cycle will be a discussion point. Development projects take six to 12 months to build and secure entitlements. A big portion of RECon attendees are tenants. I think the developers, investors and tenants all have a growing concern about timing and the impact on new projects that are being initiated.”
GlobeSt.com is providing wall-to-wall coverage of ICSC's RECon show in Las Vegas May 20-24. Subscribe to the Retail Ticket for pre-event articles, live video interviews on site and post-conference analysis. Keep checking back with GlobeSt.com throughout this month and next for all the retail news and analysis you need to know as we gear up for this year's RECon event.
LAS VEGAS—“This is the largest brainstorming session for our industry.” That is according to Kevin Zak, a principal at Dorsky + Yue. He tells GlobeSt.com, in preparation for the upcoming ICSC RECon conference that individually, his firm is engrained in what its clients are doing on a daily basis, but this conference presents an opportunity for all retail real estate professionals to gather under one roof to collaborate and get a pulse on what is unfolding across every aspect of the industry.
In recent months, Zak continues, the industry has been hit by a string of retail closure announcements, but he says that these challenges will pave the way for great opportunity. “We expect discussions to focus in on how to be more creative about redeveloping spaces, exploring more re-tenanting of spaces and a continuation of realignment in how e-commerce and brick-and-mortar come together in a way that serves the purpose and interest of the customer.”
Ron Goldstone, SVP of Farbman Group, is looking forward to the upcoming event as well. He tells GlobeSt.com that he expects the event to be a reasonably positive show. “The economy is certainly holding its own, and expectations are more positive than negative.”
And Chris Sands, founder of Sands Investment Group, tells GlobeSt.com that when you look at the net lease space, there is a tremendous amount of stability in the asset class that continues to drive market velocity.
Sands tells GlobeSt.com that “When we are at the conference we're engaging in new conversations with clients in regards to what is happening now and where the market is going. Coming into the conference we've been experiencing a slight disconnect between buyer and seller's expectations. So we will look forward to creative conversations with both sides to manage those expectations.”
As for what Sands is most looking forward to at the event? “Our firm has evolved and now when we attend RECon we meet with a much greater diversity of client base from institutional to private capital. So we get to hear from every angle on how people are making moves in the net lease space. Some firms are selling big box assets. Private investors are still looking to deploy capital for wealth preservation by acquiring long-term net lease investments.”
He adds that “Developers are looking for guidance on how we price a deal today to ensure the best exit strategy. Family offices are looking for long term opportunistic wealth management options. When you hear from so many different perspectives in the market you can share with other clients and then advise on the best approach – from a more holistic perspective.”
As for what Sands thinks will be the main buzz at the event? He says that the two biggest issues will be retailer bankruptcies and downsizing of big box retailers. “Plus as interest rates change it will impact how we deliver on our client's business plans. As we anticipate a shift in the market cycle, we have to be cautious in our pricing and projections.”
Sands continues that “there will also continue to be interesting buzz about the impact of big box closures on retail and subsequent alternative uses. However we see a lot of value add opportunities being created because of the closures and future use options. Where we are in the cycle will be a discussion point. Development projects take six to 12 months to build and secure entitlements. A big portion of RECon attendees are tenants. I think the developers, investors and tenants all have a growing concern about timing and the impact on new projects that are being initiated.”
GlobeSt.com is providing wall-to-wall coverage of ICSC's RECon show in Las Vegas May 20-24. Subscribe to the Retail Ticket for pre-event articles, live video interviews on site and post-conference analysis. Keep checking back with GlobeSt.com throughout this month and next for all the retail news and analysis you need to know as we gear up for this year's RECon event.
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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.
