ICSC Western States 2017 Takeaways

Barry Slatt Mortgage attended ICSC Western States 2017 in Los Angeles this past week. Here are 5 takeaways from the event.

1. Heading into the end of the year there appears to be a high level of transaction volume and continued investor demand. An on-going low rate environment coupled with a limited source of alternative investments outside of real estate are contributing to the strong year-end as well as a positive outlook for 2018.
2. In the Southern California sector, there is an abundance of demand and limited supply in the retail sector. Focus of this demand is in highly populated and gentrifying sectors of the market.  Stadium developments, expansion of downtown Los Angeles, implementation of light rail and expansion of metro are fueling a high percentage of growth areas.
3. Evolution of retail and what is around the corner was a common theme at the event. Some developers felt that we will continue to see old line tenants fail and disappear creating opportunity for new concepts. Bankruptcies will of course grab most of the headlines, but it appears that there are a lot of new concepts and tenants in waiting looking to take advantage of the opportunity.
4. All about experience and convenience – bringing the level of retail up to match the market and client demand. One stop shopping – retail, grocery, restaurant and entertainment will be the focus of retail going forward.
5. Buzzword of the event was “Omni-channel” – refers to a significant shift: retailer and marketers now need to provide a seamless experience regardless of channel or device. Consumers are looking to engage with a company in a physical store, with on an online website or mobile app, through a catalog, or through social media (definition provided by blog.marketo.com)

What does this mean from a finance perspective?

With all the changes happening in the retail industry, many capital sources have become selective with lending in the retail sector. Although we have seen a slight pullback, Barry Slatt Mortgage has successfully placed 96 retail loans totaling over $330M this year.  Having an experienced finance firm with a proven retail track record is essential to finding the right outcome in today’s market.