Key Takeaways from ICSC Western Last Week

Last week many of our producers attended the 2023 ICSC Western Conference in San Diego where they interacted with many of the nation's major players in the retail industry. Below are key takeaways that a few of our producers had:

The conference was well attended and there was a definite feeling that most groups want to get deals done even if the market feels stagnant.
Overall, retail is well-positioned and has thrived post-covid.
Demand for physical, brick-and-mortar retail space is significantly outpacing supply as the retail leasing market is on fire. This is fueled by retailers still seeing value in physical locations to allow for online orders to be picked up in-store to remove the cost retailers pay for shipping and very limited development of new retail space due to higher interest rates and cost of materials and labor.
Development is challenging with the combination of construction costs and high rates, but demand for new product is strong.
Pharmacy attrition is here to stay and that will be a major task for the coming year to backfill the spaces that hit the market via Rite Aid, CVS, and Walgreens.
There is business to get done in the space but macroeconomic challenges are present.
Life Insurance Companies are the bird in hand in this market.
It is becoming increasingly difficult to transact with banks given their deposit requirements and liquidity issues.