LAS VEGAS—At the ICSC Las Vegas conference, Jaysen Chiaramonte, Senior Associate at Kennedy Wilson Brokerage, shared his observations on the current state of the retail market, noting that "it's an interesting time for retail right now." From the demand for immediate space filling to the rise of location-specific operators, and the movement towards quality experiences, Chiaramonte tells GlobeSt.com.

He discussed the existence of a duality between vacancies and opportunistic tenants. Ownership groups and landlords are grappling with the need to fill vacant spaces, and their urgency varies, he says. Some are eager to fill space immediately, while others adopt a more patient approach. This dichotomy, he says, has led to a diverse range of offers, including requests for high tenant improvement allowances. "Some tenants are exploring multiple options to see what sticks, while others have specific criteria and are willing to pay a premium for prime locations."

Chiaramonte also highlighted the challenges associated with first-generation spaces, primarily due to the high cost of build-out and the availability of capital. The approval process for these spaces is time-consuming, and tenants are only willing to consider such spaces if they offer exceptional terms or if they receive favorable deals from landlords, he says, adding that the high barrier to entry makes securing first-generation space a difficult task in the current retail landscape.