MIAMI—The recent ICSC Florida, which had more than 5,000 attendees and 80 exhibitions, saw record attendance for the first time since before the Great Recession. GlobeSt.com sat down with Katy Welsh, ICSC Conference Committee Chair and Colliers International South Florida's senior vice president of Retail Leasing Services. to find out the main takeaways from the conference.
In part one of this exclusive interview, she reveals key takeaways from the retail conference. In part two, she will share her expectations for the future of the retail industry as national retailers continue to find the right balance between e-commerce and brick-and-mortar.
First, Welsh says there was a renewed sense of optimism about the industry among the attendees. The main focal point of the conference involved the rise of e-commerce and how it is forcing retailers to adapt their business models.
That's not surprising, given the latest e-commerce statistics. The National Retail Federation predicts online retail will grow 8 percent to 12 percent. That's up to three times higher than the growth rate of the overall retail industry. Retail sales, NRF reports, are set to land between $427 billion and $443 billion.
“Every retailer has a shelf life unless they evolve with the times,” Welsh says. “However, there's a misperception that e-commerce is the culprit of retail's woes. The reality is that retail is going through a period of reinvention. It's evolving, not just in response to online, but also because of shifts in consumer preferences and behaviors.”
As she sees it, these changes are bringing in a steady stream of vibrant new businesses. Arguably, this is nothing new. Retail, she says, has always gone through periods of change which have resulted in some casualties.
“Another take away is the strength of the retail market in Florida, despite some stores closings,” Welsh says. “Both the rental rate and occupancy rate in Florida exceed the national average.”
Nationally, she points out, rental rates have hovered around $15 per square foot since 2012. By contrast, rents in Florida reached $18.87 per square foot at the start of 2017. In fact, Welsh says, there's an endless pipeline of tenants waiting to backfill vacated retail space across South Florida despite a number of national box stores closing their stores locally.
(Find out why South Florida is bucking e-commerce erosion trends.)
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
