Despite Strong Tenant Demand, Retail Isn’t Without Challenges
Have labor workforce costs and construction land prices squeezed the profits from development businesses? GlobeSt.com takes a closer look in this EXCLUSIVE interview with Christopher Beavor of CAI Investments LLC.
GlobeSt.com provided wall-to-wall coverage of ICSC’s RECon show in Las Vegas, which was from May 19-22. Subscribe to the Retail Ticket for post-event articles, live video interviews from on site and more analysis on the retail market.
LAS VEGAS—Overall, this year’s ICSC RECon event had great attendance and a lot of buzz. That is according to Christopher Beavor, CEO of CAI Investments LLC.
Beavor tells GlobeSt.com that from his perspective, as the leader of a vertically integrated national development company, the industry is experiencing numerous challenges. “Labor workforce costs and construction land prices have basically squeezed the profits from development businesses.”
On a positive note, Beavor says, he is seeing “strong demand from national tenants expanding because the challenges for experienced development companies, in comparison, are far and few between.” In certain environments, he explains, he is also seeing the popularity of service, medical, industrial distribution and the repositioning of the big box malls growing.
“Retailers have used digital marketing platforms to target millennials and younger generations who seek stores that deliver an experience,” he says. “As a result, we believe this trend of digital and experiential marketing will drive the retail space for years to come.”
Even in a downturn, according to Beavor, there will be plenty of pent-up demand for development projects. “Actually, a market slowdown will give our industry time to catch up with the needs of our clients, predominantly national firms.”
Check back with GlobeSt.com in the next few weeks for more from our wall-to-wall retail coverage surrounding the end of the Las Vegas ICSC RECon show and overall trends in the market. Also, take a look below at stories you might have missed.
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