ICSC RECon Takeaways

We, along with 37,000 other retailers, brokers, and investors converged on Las Vegas last week for RECon, the industry’s largest trade convention. Here are some of our takeaways:

Dealing with Disruption and Change 
Owners are competing for necessity-based providers, or more specifically tenants who provide an experience you can’t get online. The majority of this space is increasingly concentrated in the health and wellness, beauty, and fitness areas. Many landlords are focused on repurposing malls and shopping centers with the latest food, beverage, and entertainment concepts.

Lower quality assets are going to be harder to finance in the CBMS market, which means either that other lenders are going to have to fill that void or deals likely won’t get done.

Asset Diversification 
In response to the perceived risk in retail investments, both private money and institutional players are seeking mixed used, assets as a means to diversify.

Net Lease Strength
The continued demand for long-term leases remain strong. Nationally cap rates have moved up slightly, locally they are holding strong.