LAS VEGAS—When chatting with retail sources during the ICSC Las Vegas retail event, Britt Raymond, managing director of SRS National Net Lease Group and Market Leader NY Capital Markets, highlighted the shift in investment focus towards local or New York-based investors rather than national 1031 exchange buyers, who have been less active. Raymond emphasized the importance of investing in best-in-class assets, particularly long-term, absolute triple net leases with high-quality real estate fundamentals.

She discussed the current economic cycle and the need to prioritize preservation for core clients to ensure their survival until the market stabilizes. This may involve holding assets for a year, waiting for the market to gain momentum, or restructuring capital stacks and lease structures to mitigate losses and maintain viability.

Raymond emphasized that conducting transactions at present will involve greater market awareness and information, enabling both sellers and buyers to profit rather than the sellers suffering significant value depreciation or buyers hesitating to engage. She anticipated that once market equilibrium is reestablished and value is determined, transaction velocity will increase.

Raymond advised net lease experts to diversify their portfolios, recognizing that net lease encompasses various lease structures. If the current market conditions make retail or traditional retail unfeasible due to negative leverage, it would be prudent to explore other categories, she said.

For instance, if industrial or medical properties align better with buyer preferences, brokers should focus on those areas. Raymond mentioned successful deals with expanding medical practices, regional hospital brands, and mission-critical industrial facilities, which have attracted professional and private buyers. She projected that non-traditional retail would account for 50% of their business this year.

Stay tuned for more coverage of the ICSC Las Vegas event from GlobeSt.com, including exclusive insights from attendees. Also, check out the related stories already posted below:

How Class B and C Malls Can Thrive with Quality Tenants

Washington, DC’s Retail Sector Attracts Private Capital, Top Brands

Industry Experts Talk Dining Trends and Real Estate at ICSC

Entertainment Concepts Merge with F&B to Drive Scalable Experiences

ICSC Panelists: In Challenging Times This is How We Communicate With Our Stakeholders

Looking for Innovative Solutions for Urban Grocery Stores?

Retail Experts from Transwestern Share Industry Insights Ahead of ICSC Las Vegas Event

ICSC Las Vegas Kick Off: Unveiling the Latest Insights from Retail Powerhouses

Retail Industries Undergo Data-Driven Evolution, Says Datex CEO

Parsing the 0.4% Increase in Retail Sales

ICSC Las Vegas Unites Retail Leasing Professionals for Collaboration and Innovation

Retail Expert Poag Shares Insights on Industry Resilience Amid Market Turmoil

How Retail Owners Are Staying Profitable in Today’s Market

Key Drivers of Successful Urban Retail Redevelopments

NNN Retail Returns Decouple from Benchmark Piquing Investor Interest

Bankruptcies and Retailer Expansion Expected to Take Center Stage at ICSC Event

Glendale, CA Take Proactive Role in Encouraging New Business Growth

Retail’s Bright Future Lies In Brick And Mortar After All

What to Look for in a Retail Development Joint Venture

Dana Point Shares Its Collaborative Approach to Successful Retail Development

What to Look for in a Retail Development Joint Venture

Influencers in Retail

Experts Talk ICSC; High Construction Costs and Underwriting Pressure

ICSC Offers Data Service and Marketplace to Its Members