Shopping center pros optimistic about 2012 growth

The shopping center industry is seeing more available credit and more capital flow, but those looking for a boom should temper their expectations, an industry spokesman said Monday.

"There's still not a lot of new development in the industry, but that's a good thing because it fixes the vacancy issue," said industry spokesman Jesse Tron.

Tron's comments came at the outset of RECon 2012, a global retail real estate convention hosted by the International Council of Shopping Centers. It runs through Wednesday at the Las Vegas Convention Center.

The show has attracted about 31,000 shopping center professionals, some 1,000 more than the 2011 show.

Tron sees an upbeat mood this year.

"I think, really, there's been a renewed optimism permeating the conference," he said.

In looking at industry research, Tron said retail vacancies are leveling off, which could mean new development starting in a "couple of years."

But when thinking about new retail development, think slow, measured growth - not an explosion of new outlets as in years past.

"There wouldn't be that boom," Tron said. "That just wouldn't happen.''

At RECon 2012, shopping centers, retailers and real estate professionals are hard at work on the main expo floor.

Look to the left and you might see Chase Bank, one of the largest U.S. financial institutions. To the right could be fast-food giant McDonald's or the Howard Hughes Corp.

Either way, everybody you need to fill your shopping center is here, under one, extra-large roof, including cellphone company T-Mobile.

The communications carrier is celebrating the opening of its 1,000th premium retail T-Mobile store, all of which are run by third-party operators that are worth more than $1.5 million in liquid assets. T-Mobile operates 2,000 corporate stores in addition to the partner-run retail locations.

In the past year, T-Mobile has seen an increase of about 15 percent in contract sales via its premium retail model, said Jonathan Blood, the company's national director of business development.

He said that at RECon, his goals are to secure new site locations.

"We've got a really aggressive build goal. We're probably going to build close to 350 stores this year. We need more real estate to get those stores built," Blood said.

To achieve that benchmark, Bellevue, Wash.-based T-Mobile brought 18 employees to the show.

GA Keen Realty Advisors of New York City brought five employees to help the company reach its RECon goals. GA Keen works primarily with real estate tenants who have leases they'd like to escape.

Harold Bordwin, co-president of Keen, booked meetings with retailers, real estate investors and landlords during the show.

"We're just trying to get the word out about what we do, re-establish some old relationships and say hi to old friends," Bordwin said. "This is pretty important. Everybody's here."

Contact reporter Laura Carroll at lcarroll@reviewjournal.com or 702-380-4588.