Experts Talk RECon; New Emerging Concepts and Power Centers

GlobeSt.com is providing wall-to-wall coverage of ICSC’s RECon show in Las Vegas May 19-22. Subscribe to the Retail Ticket for pre-event articles, live video interviews on site and post-conference analysis.

“At neighborhood strip malls and power centers, big box brands that are shuttering and leaving behind empty storefronts are resulting in a reverse in how owners and developers approach filling space at those centers.” That is according to Chuck Taylor, director of operations for Lemont, IL-based Englewood Construction. In the past, he tells GlobeSt.com, the big box space would be filled first, with a well-known brand as anchor tenant attracting smaller brands and leading to build-out of additional sites on the property. But now, he says with many of those primary storefronts sitting vacant after brands fold, “owners and developers are still tapping us to move ahead with construction of two- or four-unit retail strips and single-use pad sites in the outlots of these centers. They’re using this as a creative way to continue generating revenue and driving traffic as they find something new to fill the vacant anchor space.”

If you are one of the many looking for creative ways to use retail space, you aren’t alone and are likely headed to the colossal RECon convention May 19-22 in Las Vegas.  “For the retail real estate industry, this is our Super Bowl,” So said principal Jason Baker, who leads the representation team at Houston-based Baker Katz when talking about the upcoming ICSC RECon show in Las Vegas. He tells GlobeSt.com that there is positive energy leading up to the show with discussion around emerging and expanding retailers, and we expect that conversation continue throughout the conference.

As for what the company is looking forward to while there? The firm’s Kenneth Katz, principal, tells GlobeSt.com that he is interested in learning about new concepts that may be at the front end of expansion, particularly restaurants. “There are a lot of intriguing concepts that are emerging, and the show is a great place to connect with key contacts to help paint a picture of what is to come next in the industry.”

GlobeSt.com also spoke with Naveen Jaggi, president of retail at JLL, who thinks the mood of the conference will be mostly positive this year. “While 2018 was relatively modest in terms of performance overall, we ended the year on a higher note with net absorption and rents both rising as vacancy remained flat across asset types. I expect that momentum to continue through 2019. Additionally, consumer fundamentals have remained relatively strong, with unemployment staying at near historic lows. Overall, the backdrop is relatively well set for strong deal-making potential at this year’s show.”

Keep checking back with GlobeSt.com in the next month for more retail coverage as we continue to speak with attendees on their expectations of the upcoming event as well as trends they are seeing.