{"id":1004177804,"date":"2017-05-22T08:51:24","date_gmt":"2017-05-22T16:51:24","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004177804"},"modified":"2022-12-09T01:55:38","modified_gmt":"2022-12-09T09:55:38","slug":"recon-speakers-tackle-retails-tough-issues","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/recon-speakers-tackle-retails-tough-issues\/","title":{"rendered":"RECon Speakers Tackle Retail’s Tough Issues"},"content":{"rendered":"

By Paul Rosta<\/p>\n

\"Heather<\/a>

Heather Arnold of Streetsense answers question from an audience member after RECon presentation.<\/p><\/div>\n

At a time of rapid change and looming uncertainty for retail real estate, experts at RECon wasted no time before tackling the industry\u2019s biggest issues during the first day of the International Council of Shopping Centers\u2019 annual convention in Las Vegas.<\/p>\n

The issue ahead is \u201chow are we going to make the retail supply that we\u2019re planning and projecting and built and received somehow match the retail spending that we have,\u201d asserted Heather Arnold, director of research and analysis for Streetsense.<\/p>\n

Speaking to a packed ballroom at the Westgate Hotel on Sunday afternoon, she cited the U.S.\u2019s inventory of some 23 square feet of retail space per resident, about twice as much as Canada and triple the size of Europe\u2019s market. Bringing the U.S. supply into equilibrium would require repurposing or demolishing at least 1 billion square feet of the 13 billion-square-foot U.S. retail market, she pointed out.<\/p>\n

That excess by no means spells doom for brick-and-mortar retail real estate, he said, \u201cbut it\u2019s going to be about getting smarter, especially when it comes to new development,\u201d Arnold argued. Too often, developers want to build retail into a mixed-use project than demand justifies, she added. \u201cWhat they want to do from a retail perspective almost always exceeds the retail opportunities that we can identify.\u201d<\/p>\n

One rule of thumb calls for 12 square feet of retail per residential unit in a mixed-use development, she noted. For a development with 3,000 apartments, that translates into only 36,000 square feet of retail, far less than the hundreds of thousands of square feet that a project sponsor often wants to build. \u201cThe worst thing you can do is build a building, put retail on the ground floor and you can\u2019t fill it. We\u2019re seeing this happen around the country.\u201d<\/p>\n

\u201cIn many of our projects, retail is transitioning from an NOI driver to an amenity one,\u201d said Bruce Leonard, a principal at Streetsense. He reported advising a client that is developing a 7.5 million-square-foot mixed-use project in the Washington, D.C., metropolitan area: \u201cUnless you build in an amenity, they\u2019re not coming.\u201d<\/p>\n

Mixed-Use Needs and Wants<\/h2>\n
\"Yaromir<\/a>

Yaromir Steiner, CEO of Steiner + Associates, meets audience members after RECon session.<\/p><\/div>\n

Strategies for mixed-use were also the subject of a Sunday afternoon session led by Yaromir Steiner, the longtime developer and CEO of Steiner + Associates. \u201cRetail always has to be studied independent of other uses,\u201d he told another meeting room crowded with hundreds of real estate professionals.<\/p>\n

Even in the absence of other property categories, he explained, a location must be capable of supporting retail. Steiner addressed the distinctions, and sometimes overlapping characteristics, between \u201cneed\u201d and \u201cwant\u201d retail. Depending on the intent of the customer, a visit to McDonald’s could be either a destination or a necessity, he explained.<\/p>\n

Additional observations and advice offered by Steiner:<\/p>\n

    \n
  • On how retailers misfired in recent years: \u201cAll of their efforts went into out-Amazoning Amazon. They were not focusing on the customer and the customer experience.\u201d<\/li>\n
  • In selecting a developer to handle a specific asset category, \u201cDon\u2019t bring someone in that you\u2019ve never met before.\u201d<\/li>\n
  • \u201cYou cannot force a public-private venture on the public. Some public leaders get it, some don\u2019t, and you want the ones who get it.\u201d<\/li>\n
  • \u201cReally look at food and bars as anchors.\u201d Restaurants provide an environment for socialization, which is particularly important for drawing customers from younger demographic groups.<\/li>\n
  • \u201cIntegrating affordable housing into mixed-use environments is going to be the next challenge.\u201d<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    Industry veterans address oversupply, mixed-use development strategy and caveats during day one of ICSC’s annual retail real estate convention in Las Vegas.<\/p>\n","protected":false},"author":445,"featured_media":1004177806,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23891,21742,21749],"tags":[33018,35699,34049,35700],"class_list":["post-1004177804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-latest","category-retail","tag-icsc","tag-recon","tag-steiner-associates","tag-streetsense"],"acf":[],"yoast_head":"\nRECon Speakers Tackle Retail's Tough Issues - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/recon-speakers-tackle-retails-tough-issues\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RECon Speakers Tackle Retail's Tough Issues\" \/>\n<meta property=\"og:description\" content=\"Industry veterans address oversupply, mixed-use development strategy and caveats during day one of ICSC's annual retail real estate convention in Las Vegas.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/recon-speakers-tackle-retails-tough-issues\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2017-05-22T16:51:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T09:55:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/05\/20170521_171855_resized-2-e1495470865978.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"801\" \/>\n\t<meta property=\"og:image:height\" content=\"611\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul Rosta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/recon-speakers-tackle-retails-tough-issues\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/recon-speakers-tackle-retails-tough-issues\/\",\"name\":\"RECon Speakers Tackle Retail's Tough Issues - 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