Retail isn’t nearly as big of a gamble as it was just a couple of years ago. That doesn’t mean you should just throw $100 on black and expect to double your money, but the sector is certainly exhibiting some definite signs of improvement. Shopping center transactions are starting to pick up, many retailers are again rolling out ambitious expansion plans and retail REITs are far from showing any signs of distress.
But the sector, and the entire industry for that matter, still faces challenges. Unemployment, though improved, is still far from a pretty picture. The housing market hasn’t returned in any monumental way, gas prices continue to rise and the country is seriously in debt. Natural disasters and geopolitical strife abroad are reasons for more uncertainty. All of these factors can negatively influence the consumer, which in turn puts pressure on retail.
Real Estate Forum, in conjunction with Marcus & Millichap Real Estate Investment Services Inc., recently spoke with some leading retail real estate executives to get their impressions on where the sector is headed. An edited version of that discussion follows.
PARTICIPANTS
Jeffrey S. Berkes
Executive Vice President and Chief Investment Officer
Federal Realty Investment Trust
David B. Henry
Vice Chairman, President and Chief Executive Officer
Kimco Realty Corp.
Bob Roscoe
Divisional Vice President, Real Estate
Walgreen Co.
Bill Rose
National Director, National Retail Group
Marcus & Millichap Real Estate Investment Services Inc.
Donald P. Wright
Senior Vice President, Real Estate and Engineering
Safeway Inc.
MODERATOR
Ian Ritter
Retail Editor
Real Estate Forum/GlobeSt.com
To read what the experts had to say, visit the May 2011 issue of Real Estate Forum.
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