SAN DIEGO—Recent retail mergers and bankruptcies keep the focus on looking for the next new retailer to compete against traditional brands or the next restaurant trend to replace the current passing fad, Coreland Cos.' partner/SVP Matt Hammond tells GlobeSt.com. We spoke exclusively with Hammond after the recent ICSC Western Conference and Deal Making event here about the conference, emerging retail and restaurant trends and what's happening in the big-box arena.

GlobeSt.com: From what you observed at the conference and your expertise in the industry, what are some of the emerging trends you're seeing in the retail sector?

Hammond: One of our main goals heading into any conference is to uncover the next big thing―find the most viable retailers looking to break into the market and capable of competing among grocers, restaurants, sporting goods or soft goods. There is no doubt that the restaurant space is stocked with strong competitors. However, the market remains very thin when it comes to new concepts in the big-box arena. Hobby Lobby and Orchard Supply Hardware continue to make deals, but other box concepts are treading lightly in regard to expansion into Los Angeles and Orange County. One example that stands out is Hibbett Sports―an established retailer with over 1,000 locations nationwide, but they are only focusing on Inland Empire sites and avoiding direct competition with Dick's Sporting Goods.

GlobeSt.com: What is happening in the big-box arena in terms of competition?

Hammond: We were encouraged to hear ICSC president Tom McGee share that the category leaders―Walmart, Kroger, Home Depot, Costco, Walgreens, Target―are all faring well based on recent statistics. The industry needs to put aside the talk that Amazon is dwarfing brick-and-mortar because, in reality, Amazon only accounts for 1.4% of total US retail sales and trails each of these boxes. What we are not seeing is strong, new competition entering the market. For example, Dick's Sporting Goods' earnings will reap the benefits of Sports Authority and Sports Chalet closings, but a healthy real estate market needs competition. We are looking for the next mid- or big-box retailer that has right-sized and is looking to expand in core markets.

GlobeSt.com: What are some of the latest trends in the restaurant space?

Hammond: Restaurant trends change quickly. It's the nature of the market, and you have to be ready to backfill space with the latest and greatest. This year we have seen the rapidly rising popularity of poke concepts, which have been valuable in-line additions to suburban and urban shopping centers alike. In the dessert category, Creamistry has also seen great success, often replacing former Pinkberry sites such as a recent deal we executed at Brea Plaza.

GlobeSt.com: How is the grocery-anchored tenant mix changing?

Hammond: More than three years ago, we started to see the rise of medi-retail and the successful integration of gyms as anchors. Today, we're seeing the confluence of both. Quasi-fitness/therapeutic uses are expanding and reaping the benefits of co-tenancies such as urgent-care sites, specialty gyms, pharmacies and juice bars. Yoga studios can fall into this category, as well as cryotherapy and vitamin clinics, for example. At a listing of ours in Orange County we leased 6,000 square feet to an urgent care, which in turn sub-leased 2,000 square feet to yoga and cryotherapy studios, which they found to be strong complimentary uses.

GlobeSt.com: From what you observed at the conference and your expertise in the industry, what are some of the emerging trends you're seeing in the retail sector?

GlobeSt.com: What is happening in the big-box arena in terms of competition?

GlobeSt.com: What are some of the latest trends in the restaurant space?

GlobeSt.com: How is the grocery-anchored tenant mix changing?

Instant Insights /

Looking for the Next Big Thing in Retail

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