LAS VEGAS—GlobeSt.com had the opportunity to catch up with CBRE during the recent ICSC Las Vegas event to delve into the latest trends shaping the retail market. Todd Caruso, CBRE's Retail Investor and Services Lead, Americas, emphasized that despite the prevailing uncertain economy, high interest rates, and other challenges, the fundamentals of the retail sector remain robust. Caruso asserted that investors who adapt to the changing landscape can tap into unmet demand for retail spaces.

Caruso further highlighted the remarkable opportunities available for patient, long-term capital in slowly recovering high street districts and well-located large format properties that hold potential for additional development and adaptive reuse. He added, "We can expect to see further expansion from retailers in tertiary markets, which will help offset the tightness in availability experienced in some major markets."

When discussing the trends in class B and lesser mall redevelopments, Mark Hunter, the managing director of retail asset services at CBRE, revealed that class B malls have exhibited a stronger rebound from the pandemic than anticipated, boasting higher sales and occupancy rates. Hunter attributed this resilience to various factors, including the presence of suburban markets where many employees continue to work from home and shop at nearby malls, limited new retail construction, and the influx of new and expanding tenants, all contributing to resilient consumer spending.