ICSC 2016 RECon Recap:

ICSC RECon is the largest convention in the world for the retail real estate industry. I attended this year’s conference in Las Vegas on May 23-25.  Here are some takeaways from the show:

• This show had the most participants since the Great Recession of 2008.  Over 36,000 people were in attendance, which indicates that the Retail industry continues to grow year after year.
• There is a lot of money out there looking for deals.  Many investors, REITs and developers are flush with cash and are looking to purchase properties.
• Online retailers continue to take market share from bricks-and-mortar stores (see Staples article below).  Landlords try to combat Amazon.com and other e-tailers by leasing space to service businesses (such as restaurants), or by creating experiences that cannot be duplicated online.
• With interest rates at record lows and a lot of people nervous about a real estate “bubble,” some are looking to exit the market and sit on cash for the next few years.

In summary, people are cautiously optimistic about the market in the next few years.  What is your strategy?  Whether you are looking to buy, sell, or hold, let’s talk about how I can help you achieve your investment goals.

National Retailer News

In May, a federal judge rejected a proposed merger between Staples and Office Depot, claiming that the merger would have increased prices in a way that would have violated antitrust laws.

But does it really matter?  Who buys office supplies from Staples or Office Depot anymore?  I recently ordered office supplies from Amazon.com on a Friday afternoon, and they were delivered to me on Sunday with free Amazon Prime shipping.  Yes, on Sunday! 

Amazon has already been a huge factor in the failure of bookstores, electronics stores, sporting goods stores, and many clothing stores.  Are office supply stores next?

Local Happenings: QVC’s Distribution Center Set to Open this Fall

The huge warehouse visible from the I-10 freeway at Vineyard Avenue in Ontario will soon be the West Coast distribution center of the QVC home shopping television channel.  Although this industrial property is not in my specialty area of Retail real estate, it is undeniable that this building and its employees will have a significant impact to local retailers.  Up to 2,000 employees are expected to be attracted to the project, which means that new retail shops will be opening nearby.  According to a June 3 article in the Daily Bulletin, retailers in Ontario are already benefiting from the influx of construction workers to their businesses, with the hope of a business boon once the distribution center opens for business.

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About me:

I specialize in representing buyers and sellers of retail investment properties, focusing primarily on the Western Inland Empire. Prior to commercial real estate brokerage, I worked as a full-time residential real estate investor, flipping houses in Orange County.

Originally from New Jersey, I have worked for multinational corporations such as Nestle PowerBar, Prudential, and Computer Sciences Corporation. I have a Bachelor of Science in Biomedical Engineering from Johns Hopkins University and an MBA from the Fuqua School of Business at Duke University.

About Progressive Real Estate Partners:

Progressive Real Estate Partners (PREP) is a boutique retail brokerage firm with a unique approach to leasing and selling retail properties. Established in 2007, our emphasis on retail AND geographic focus on Southern California’s Inland Empire region has enabled us to become the most efficient and effective brokerage within the marketplace.