Experts Talk ICSC; High Construction Costs and Underwriting Pressure

LAS VEGAS—As the highly anticipated ICSC Las Vegas event draws near, GlobeSt.com is ramping up its coverage of the latest trends and insights in the retail industry. With over 30,000 attendees expected to attend the two-to-three day affair, GlobeSt.com recently caught up with several key attendees and retail experts to gather their expectations for this year’s edition.

Chris Hake, Senior Vice President and Director of the Southwest Region at Thompson Thrift, emphasized the importance of face-to-face interactions when discussing potential deals. Virtual meetings have been useful for daily communication with tenants, but nothing compares to in-person meetings for discussing deal opportunities. Hake shared that Thompson Thrift is scheduled to meet with a number of new retail and restaurant concepts that would make valuable additions to the mixed-use projects the company is pursuing throughout the Southwest.

Ken Caron, SVP of commercial development at Lewis Retail Centers, also noted the high construction costs for both tenants and developers. To balance the costs and quality, Lewis Retail Centers is carefully examining the numbers and building methods to ensure the construction of high-quality shopping centers at manageable costs. Caron highlighted several industry trends, including the surge in popularity of drive-thru pads, outdoor dining areas, and convenient parking.

Terry Todd, Associate Principal at RDC, shared that his company has been attending the ICSC Spring Convention since 1979. Todd is excited to meet new clients and network with industry professionals, and is fully engaged in assisting clients to prepare marketing materials, including plans, videos, and models to facilitate leasing properties. Mark Sigal, CEO of Datex Property Solutions, is also looking forward to ICSC Las Vegas this year as it comes at a time when the industry is finally past the pandemic. He is eager to take measure of the cadence of businesses and learn about the impact of rising interest rates on portfolio strategy.

Chris Lomuto, Northmarq Associate Vice President, expressed that while the CRE industry is heavily focused on numbers and data analysis, ICSC Las Vegas provides a unique opportunity to meet and advance relationships in a way that can’t be replicated through virtual means. As a people business, he sees the event as something truly special.

Stay tuned to GlobeSt.com for more coverage of the ICSC Las Vegas event and the latest developments in the retail industry.