Feeling optimistic for what lies ahead in 2020 was central to what each panelist shared at ACRE’s 2020 Industry Forecast luncheon held January 14 in Long Beach.
Moderated by Chris Gentzkow and Gentz Commercial, the panel offered an investment, leasing and debt perspective on the marketplace. Panelists included John Chun, Managing Director at HFF; Ryan Garcia, Vice President, CBRE Corporate Capital Markets; Casey McKeon, Vice President of Acquisitions at Heslin Holdings; and Matt Hammond, Coreland Companies Senior Vice President.
Gentzkow kicked-off the discussion by asking the panelists to identify the tenants that ‘won the year’ in 2019.
“Food continued to crush it, especially when you look at the increasing success of brands like Raising Cane’s, In-and-Out, Popeye’s and the like,” shared McKeon. “Food and beverage options remain a retail driver.”
“Big Box tenants who have finally figured out their multi-channel strategies had a strong year,” added Hammond. “Tenants like Target, Walmart and Kohl’s have invested billions of dollars into their online platforms and buy-online-pickup-in-store strategies. Now they are starting to see it really pay off.”
The discussion covered popular food halls, including the 2019 sale of Trade Marketplace & Food Hall in Irvine. This modern redevelopment of a former strip center transacted at a 5% cap rate, showcasing the continuing high demand for food-anchored investment opportunities.
When looking ahead to 2020, all expect a stable market with little softening as consumer confidence remains strong and interest rates low.
“From a leasing perspective, I always look to unemployment first,” shared Hammond. “Our local retail economy is in good shape if people are employed, consumer confidence is high and families are dining out, shopping and looking for entertainment.”
For additional insight, attend ACRE‘s upcoming event, 100 Tenants in 60ish Minutes on February 11.
ACRE is a non-profit association that provides a forum for the exchange of ideas and networking between commercial real estate professionals. Panel discussions and special events are held throughout the year bringing together developers, tenants, brokers, lenders, consultants and other related professionals involved in the Southern California commercial real estate industry.