For many involved with retail in CRE — it's an euphoric time to be alive. The Federal Reserve is cutting interest rates in hopes of creating a more favorable capital environment, while others are looking to the sector's resilient fundamentals even in uncertain economic times.
A panel discussion at ICSC New York 2025, moderated by JLL's President of Retail Advisory Services and ICSC trustee Naveen Jaggi, highlighted the opportunities in the retail sector currently in a market with tight levels of supply. The speakers were James Cregan, senior director of real estate & small store format at Bloomingdale's, Dan Croce, senior vice president of real estate at Sprouts Farmers Market and Clare E. Walsh, managing director of leasing strategy at Asana Partners.
Overall, Walsh, who has been with Asana for about seven years, calls this time the "most exciting" to be an owner in retail real estate in her career. Asana, which operates more than $7 billion in neighborhood assets, has been actively looking for investments in the sector over the past 18 months, thanks to the favorable supply dynamics, which include the demolition and removal of obsolete retail space.
"We're definitely in high expansion mode [and] have multiple projects under contract right now across the country, Walsh said.
Markets They Are Targeting
All three panelists share a high level of enthusiasm currently, which may be to no surprise based on the bullish overall industry sentiment. Both Walsh and Croce spoke about their company's expansion plans.
Croce said that currently, Sprouts, which owns over 450 stores, is growing "heavily" in the Midwest and Northeast, referring to those regions as "generational pockets" in the country. However, he did not forget about Florida, where the organic grocer operates nearly 60 locations now compared to when it just had three in 2017.
"We have every expectation to double that in the next five years as well," Croce revealed of the company's Sunshine State plans.
Florida is a big focus for Asana too, with Tampa, Orlando and Miami in particular being cities of emphasis, according to Walsh. The Sunbelt also showcases some "exciting neighborhoods," with Walsh listing Southern California, Austin, Dallas and Houston as some examples.
But the suburbs in the Northeast can't be overlooked for Asana, as millennials get older and start families.
"The near urban suburbs in New York, northern New Jersey, Summit, Westport, [and] Westchester, is interesting," Walsh highlighted.
Smaller Players Even See Excitement
And yet, even smaller and newer operators like department store chain Bloomingdale's, which owns just 31 full-line stores nationally, see this as an exciting time in real estate. He calls the opportunity to grow in this environment "invigorating," with the potential for partnerships with investors and developers.
"We are heavily densified to the coasts in a handful of major cities, but we as an organization believe immensely in the future of physical retail," Cregan explained.
"We are not pushing for all of our growth to come out of digital and we see investment in our existing fleet, as well as opening new stores, as the way that we can also continue to drive growth instead of just relying on e-commerce, which is super important."
Bloomingdale's is continuing to offer something different compared to other department stores — smaller formats that range between 20,000 and 50,000 square feet in size.
"We know we have so much opportunity to get closer to those customers who are underserved or not [being] reached at all," Cregan said.
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