{"id":1004799121,"date":"2026-05-19T05:00:30","date_gmt":"2026-05-19T13:00:30","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004799121"},"modified":"2026-05-19T07:26:10","modified_gmt":"2026-05-19T15:26:10","slug":"icsc-special-report-short-term-holds-long-term-visions","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/icsc-special-report-short-term-holds-long-term-visions\/","title":{"rendered":"ICSC Special Report: Short-Term Holds, Long-Term Visions"},"content":{"rendered":"
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Big V Property Group’s Tony D’Ambrosio talks retail investing trends with Blackstone’s Elena Clarfield, Katie Grissom of Nuveen Real Estate, KPR Centers’ Daniel Katz and John Manginelli of KeyBank Real Estate Capital.
 Photo by Gabriel Frank<\/em><\/figcaption><\/figure><\/div>\n\n\n

Pronounced supply-demand imbalances, a widespread appreciation for in-person shopping experiences and a relative immunity to market declines make retail investment a continuously compelling prospect, even if stakeholders are becoming more selective about how and where they\u2019ll allocate capital.<\/p>\n\n\n\n

This was a prevailing sentiment held by panelists speaking at ICSC\u2019s Las Vegas event, hosted amid a period of economic uncertainty and weakening consumer sentiment<\/a>. Consequently, the key to getting ahead in the sector, according to experts, is to view retail as a long-term play, one that requires some necessary concessions in the short run.<\/p>\n\n\n\n

Enthusiasm and adaptation<\/h2>\n\n\n\n

If fundamentals are anything to go by, the retail sector is one of the strongest in all commercial real estate. According to data from CBRE<\/a>, approximately 4.7 million square feet of space came online in the first quarter of this year, the lowest figure in more than a decade. At the same time, asking rents have increased by 2.4 percent, while overall net absorption remained positive for three consecutive quarters.<\/p>\n\n\n\n

\u201cThese are all tailwinds,\u201d said KPR Centers managing director Danel Katz at a panel discussion themed around capital raising<\/a> and deal underwriting. <\/p>\n\n\n\n

\u201cWe wish we had more vacancy, but this period is the best I\u2019ve seen as far as fundamentals go,\u201d Katz added. \u201cRetail is the only asset class where you can earn a spread over your debt and get positive cash flow.\u201d<\/p>\n\n\n\n

When asked if the current demand is the peak of a cycle instead of a sector poised for long-term stability, the panelists seemed skeptical on account of the fundamentals and institutional investor interest. But some of their demographic strength and net operating income-centric underwriting strategies suggested otherwise. <\/p>\n\n\n\n

\u201cWe can look at any shopping center, and unless the sales are there, we\u2019re gone,\u201d Katz emphasized. \u201cYou want that occupancy rate in the high 90s.”<\/p>\n\n\n\n

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READ ALSO:<\/strong> Ground Control: Retailers Are Leaning Into Buying Their Spaces<\/a><\/p>\n\n\n\n

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Blackstone principal Elena Clarfield agreed with the latter position but also highlighted a more tailored investment strategy for Perform Properties, her firm\u2019s $10 billion retail investment arm.<\/p>\n\n\n\n

It\u2019s steering more toward open-air shopping centers, high street retail and urban luxury stores<\/a> than shopping malls and power centers, which are struggling due to a string of recent big-box bankruptcy filings<\/a>. \u201c(They\u2019re) downside-protected because the fundamentals have improved, even if properties can\u2019t quite grow from outsized NOI growth,\u201d Clarfield said.<\/p>\n\n\n\n

On the underwriting front, economic volatility<\/a> has led to more cash flow dependent and seller-centric investment strategies, even for the most well-capitalized buyers. <\/p>\n\n\n\n

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