NEWPORT BEACH, CA—The attitude at ICSC RECon last week was so positive that dealmakers were behaving as if the last seven years of recession and recovery had never taken place, Chris Fredrick, president of CCP Real Estate Advisors, tells GlobeSt.com. “Everyone was just go, go, go, with a lot of new projects coming out of the ground in San Francisco, Los Angeles, San Diego—cities are heating up.”
Tenant demand is just starting to increase, and Fredrick says he feels it is just a small amount of time away from becoming quite strong.
Along with the strengthening retail sector, Fredrick says he sees demand growing in the business-hotel market, particularly in the Inland Empire. “Both hospitality and retail have seen a resurgence in the Inland Empire and along the coast. It’s just on fire. We try to bring the hotel and retail together in our projects.”
While the firm has been involved with the development of luxury hotels including Lido House, a hotel in Newport Beach, and a new hotel project in Pacific City, most of its hospitality projects are business-traveler hotels for the select-serve market.
So how long will the optimism Fredrick noted at RECon continue? “I have a guarded optimism as a broker. I’m excited, but how long is it going to last?”
As GlobeSt.com reported earlier this month, Fredrick told us the aesthetics of a retail center, including where the property is physically located, along with the type of tenants occupying space have become the new focus of lifestyle shopping centers. He and Ian Furar, managing partner of CCP, said these two factors will determine the success or failure of a retail center in today’s environment.