The other thing that is happening when it comes to new projects, he said, is lots of co-tenancy requirements. “They want many ways out with for sales, for dark stores, even for some competing development, so it is pretty tough.”

As for the future, Noodle said that retailers are going to be smaller and go to more showroom-like settings and they will take warehouse space for $6 or $7 per foot. “They will put all their stuff there and then rent a smaller amount of space,” which he said is happening mostly on the apparel and electronics side.

He is also seeing retailers also roll out new concepts where six or seven retailers go together and take 2,000 square feet or 3,000 square feet. “Part of what is happening is that they are centralizing their distribution. Where they locate their inventory isn't $34 per square foot.”

Up next was panelist Catherine E. Pugh, Mayor of the City of Baltimore, who said that you have to follow trends and understand your demographics. “There is a need for expanded retail development in our communities. There is a need for grocery stores.”

And in Baltimore, the city offers a personal property tax credit. “Neighborhood reinvestment is key.”

And cities like Baltimore are very unique, she said, because 90% of the population will go more towards urban environments in the future. “If you build an apartment building downtown, they flock like flies and are already renting the space before you get it out of the ground. They want to be able to access retail.”

Much of what has to happen, she added, is understanding how you transition from the larger department stores to the smaller venues. “People want to be entertained and access what they need and the city has to be in partnership with those developers to make sure that you meet the needs of your community.”

Hear more from experts in the next few days as we fully cover the RECon event, with thoughts not only from attendees and panelists, but coverage of sessions, parties and more.

LAS VEGAS—“When talking to retailers, we talk to them about what they want today. The operative word these days is flexibility.” That is according to Jay Noddle, president and CEO of the Noddle Cos., during the opening panel on Monday morning at ICSC's RECon 2017.

According to Noodle, it takes more courage to be a landlord today…certainly a ground up landlord. “In the end, what makes projects work is how we structure our public/private partnerships.”

The panel, titled: “Attracting the Retail Store of the Future to Your Community Now” was moderated by Christopher Hemans, director of retail at Charlotte Center City Partners and the North Carolina P3 retail public chair. And when he asked what types of terms retailers want today, Noodle said that they want three-year leases with percentage rent, which got the crowd laughing. But he wasn't kidding.

“In our existing projects which stretch from New Jersey to Texas, we are seeing retenting taking place. We are seeing smaller spaces with lots of different ways out and with lots of termination rights,” he said. “It seems like even if they get tired, they want the right to terminate.”

The other thing that is happening when it comes to new projects, he said, is lots of co-tenancy requirements. “They want many ways out with for sales, for dark stores, even for some competing development, so it is pretty tough.”

As for the future, Noodle said that retailers are going to be smaller and go to more showroom-like settings and they will take warehouse space for $6 or $7 per foot. “They will put all their stuff there and then rent a smaller amount of space,” which he said is happening mostly on the apparel and electronics side.

He is also seeing retailers also roll out new concepts where six or seven retailers go together and take 2,000 square feet or 3,000 square feet. “Part of what is happening is that they are centralizing their distribution. Where they locate their inventory isn't $34 per square foot.”

Up next was panelist Catherine E. Pugh, Mayor of the City of Baltimore, who said that you have to follow trends and understand your demographics. “There is a need for expanded retail development in our communities. There is a need for grocery stores.”

And in Baltimore, the city offers a personal property tax credit. “Neighborhood reinvestment is key.”

And cities like Baltimore are very unique, she said, because 90% of the population will go more towards urban environments in the future. “If you build an apartment building downtown, they flock like flies and are already renting the space before you get it out of the ground. They want to be able to access retail.”

Much of what has to happen, she added, is understanding how you transition from the larger department stores to the smaller venues. “People want to be entertained and access what they need and the city has to be in partnership with those developers to make sure that you meet the needs of your community.”

Hear more from experts in the next few days as we fully cover the RECon event, with thoughts not only from attendees and panelists, but coverage of sessions, parties and more.