IRVINE, CA—Many variables play a factor in California's retail leasing market, but one in particular stands out among the rest, Donahue Schriber's chief investment officer David Mossman tells GlobeSt.com. We spoke with Schriber during ICSC's Western Division Conference in San Diego last week to get his take on the retail leasing market in California.

GlobeSt.com: How would you describe the state of the retail leasing market in California?  

Mossman: Many variables play a factor in the retail leasing market. One trend that particularly stands out is a continued low supply of new development. This bodes well for companies that weathered the recession. Another important factor is the recovery of home prices. Improved housing markets lend to consumer confidence and that is key to a strong retail environment.  The fastest recoveries have taken place in primary coastal markets with dynamic job-growth opportunities, and we now have seen this in our secondary markets as well.     

GlobeSt.com: What strategies are key to maintaining occupancy in a retail center?  

Mossman: To be successful in retail real estate, one has to be forward thinking. Study the trends, what are you seeing, what do people want, how can you provide more convenience and service, how can you make the environment welcoming? Understanding your specific trade area is key. What might work great in one demographic area might fail miserably in another. Great real estate also speaks for itself: location, location, location. Finally, understand market rents to stay competitive.        

GlobeSt.com: How has technology changed the way you manage and market a retail center?

Mossman: As far as accessing tenants goes, technology has helped somewhat;, however, it's short-sighted to think that it can ever replace having “boots on the ground” working to find the best tenants in a given area. Technology has had a far bigger impact in the way we market our centers to potential tenants. Printed materials have become somewhat obsolete because they are outdated as soon as they are printed. Today's technology allows us to post updated real-time leasing data that can reach thousands of potential tenants in a matter of minutes.    

GlobeSt.com: What types of retail tenants do you see being the most active in 2016?

Mossman: Food is an extremely active category, and we see that continuing throughout 2016. Some popular concepts include farm to table, build-your-own sandwiches, pizzas, tacos, salads, health-conscious juices, bowls, yogurts and independent restaurants featuring up-and-coming chefs with unique food offerings that appeal to the foodie in all of us. Health and fitness is also another big category. There are so many more options out there for getting into shape. People have choices now, and that's a good thing.  The service and beauty categories should also see a big uptick in the coming years. 

GlobeSt.com: How will the retail climate in California in 2016 be different than in 2015?

Mossman: The momentum is there, and the record-low supply of new development should urge growing retail/restaurant/service concepts to sign new leases. We are excited about the upcoming year and our company projections reflect that.