NEW YORK CITY—The consumer-spending picture is doing very well right now in this retail real estate environment, according to Obie Walli, CEO and co-founder of Coldwell Banker Commercial Alliance. Walli and his team were on the floor of the ICSC New York National show, and were on top of the latest retail trends. He spoke with GlobeSt.com about holiday sales, Black Friday and how consumers and landlords are more comfortable in this economic environment.

GlobeSt.com: How do you feel about where holiday spending trends are going?

Obie Walli: Right now, based on consumer-spending trends and where they're headed now, with an upward tick in a favorable direction, I wouldn't say that landlords and tenants are necessarily bullish, but based on the trends we are seeing with overall consumer debt and spending, it's fair to assume that both retailers and owners of retail properties are feeling good about how the economy is going.

GlobeSt.com: So you don't think the Black Friday sales increases were a blip?

Walli: I wouldn't call it a blip. We're starting to see consumers use debt as a form of purchasing. They're more comfortable and have more expendable income. Their wallets are loosening up. Those are all favorable signs going toward a favorable recovery. It's an indicator if that trend continues, which we are seeing, it will continue to go that way, as long as job growth continues the way it is going and consumer spending goes that way as well.

GlobeSt.com: Do you think landlords are more comfortable with regional chains than they were before?

Walli: In the markets that we specifically focus on, and are dealing more with private investors, we are seeing a level of comfort amongst landlords. That doesn't mean that we're seeing a level of comfort with lower-level tenants. What we're seeing is that housing is a good indicator of where retail is headed. If you're starting to see an uptick in new construction and home buying, every home that is bought, there are “x” amount of dollars put into the economy, and that money is put right into retail. The landlord is seeing a level of comfort. One of the things that consumers are doing is going out to eat. If you surround yourself with some good restaurant-based retailers, you're creating an environment where you allow the consumer to have an experience. The dollars are starting to flow, and landlords are becoming more comfortable with the types of tenants they are executing leases with.

GlobeSt.com: Experiential retail seems to be a big trend. Are landlords and retailers on the same page with that?

Walli: It's a function of your demographic and your tenant base. In lifestyle centers, and those types of retail environments, it's all about the experience. They have theaters, restaurants and several forms of entertainment. They're providing a venue for people to experience that. There is a better connect there. You're starting to see a generational shift in retail. You have your Millennials who are an active generation of shoppers. They like going out and enjoying themselves. They're not homebodies. We're starting to see that experience created for that generation. And Baby Boomers, who are more attracted to mixed-use retail concepts are attracted to it as well.

Instant Insights /

Consumer Trends on the Right Path for Retail

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