ICSC: What Went Down at RECon 2016
As real estate professionals and retailers from around the country catch their flights out of Las Vegas, having wrapped up another year of the International Council of Shopping Centers’ RECon, Commercial Observer reflect on the annual conference.
We reported on a slew of new and potential deals: Ripped Fitness’ entrance into the Big Apple, Under Armour eyeing FAO Schwarz’s old space at 767 Fifth Avenue, Superdry‘s three-floor sublease of Esprit‘s 21-25 West 34th Street space and a new fast-casual concept by Philippe Chow. On Monday, we learned that Canada-based Saje Natural Wellness was planning to make a foray into New York City and Los Angeles, as company executives talked to brokers from RKF (see a roundup of day one tweets here).
Throughout our time there, we also heard more about how the market is shifting to favor tenants. Retail rents are softening and tenants have a bit more leverage when it comes to getting concessions in a new space.
“It’s a tenant’s market,” said Hal Shapiro of Winick Realty Group. “Landlords are having problems accepting that rents have not increased in keeping with inflation and the proportionate tax rate the tenant had to pay in their lease.”
His colleague, Kenneth Hochhauser, said deals are taking longer to do and economic fundamentals aren’t supporting the high asking rents in the market.
“In most of the elastic markets, there is a disconnect between asking and taking rents,” he said. “An equilibrium price is still to be found. That paralyzes retail leasing velocity.”
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Winick Realty Group is one of New York’s prominent real estate firms specializing in retail leasing and advisory services. Over the years, Winick Realty has served a broad range of domestic and global clients, with a strong emphasis on long-term representation and expansion and growth strategies. Winick Realty Group is highly recognized as a forerunner in the retail real estate market.