I’m back from ICSC Western, and after three full days, there were several conversations and observations that stayed with me.
One of the things I appreciate most about ICSC is the industry friendships I have made over the years. Two conversations at Western, coincidentally both with friends named Chris, gave me reminders I brought home with me.
I asked Chris Kennedy for some advice. I told him that I love what I do, but every now and then I get bogged down by all the things in this business that are outside of my control. Chris shared something his mother used to tell him: “I control my day.” I can’t control everything that happens with a deal, but I can control what I do with my day and where I put my energy.
Then there was Chris Bergren. I attended Evergreen’s party, where I had the best Shirley Temple I have ever had, made with black cherry syrup. I mentioned it to Chris and found out that he is also a Shirley Temple fan. That turned into a great conversation about remembering to enjoy the little things.
Thank you, Chris Kennedy and Chris Bergren, for two reminders I plan to keep with me.
I also came home with plenty of observations about commercial real estate.
One came from a retailer who told me how frustrating it is when attendees often walk up to their booth and ask, “So, what do you guys do?” I was surprised to hear how often that happens.
We get limited face to face time with retailers at these shows. Why spend it asking something you could have figured out beforehand? Know the concept, where they have locations and approximately what size they are looking for. Then you can spend those few minutes figuring out whether you actually have something that could work for them.
Another conversation that caught my attention was with a property manager who manages a large portfolio. I asked her for an overall sense of how her tenants are doing. She said most are doing okay, but restaurants seem to be having the hardest time, particularly when it comes to paying rent.
Restaurants have always been a tough business, but California labor costs, higher food costs, insurance and other operating expenses certainly aren’t making it any easier. Consumers are also watching what they spend. At the same time, I’m still seeing a lot of prospects for good second generation restaurant spaces, and deals are getting done at some very high rents.
It is an interesting contrast. There is clearly still demand and plenty of restaurant concepts looking for opportunities, but it was a good reminder that getting the highest possible rent isn’t necessarily a win if the tenant can’t sustain it. A good deal needs to work for both sides.
Something else I heard over and over again from retailers was, “We need franchisees.“ There are concepts that want to grow, and markets where they want to be, but they don’t necessarily have the franchisees to get them there.
I also attended the keynote, Leading Through Change: Mindset, Marketing & AI Strategies for Growth in the Modern Market, with Hannah Hammond and Tony Giordano. One of my takeaways was the reminder of the importance of marketing and brand presence. That resonated with me because it is something we put a lot of effort into at Progressive Real Estate Partners.
When it comes to brand presence, my advice is to set goals, but don’t make them so aggressive that you can’t realistically keep up with them. Whether your goal is posting once a week, writing a monthly blog or consistently reaching out to your network, pick something you can maintain and stick with it. I think consistency over time is much more important than trying to do everything at once and then stopping.
That same consistency is the idea behind Progressive Real Estate Partners Wednesdays Are for Winners mindset. Wednesday happens to be the last day of the convention, and we think it is important to keep prospecting, keep making connections, keep doing your homework, and keep showing up. You never know which conversation will lead to the next deal.
If you would like to chat about your conference observations or discuss retail commercial real estate, please feel free to give me a call. I specialize in retail leasing and sales throughout the Inland Empire, San Gabriel Valley and North Orange County and can be reached at 909-576-4259.