New England International Council of Shopping Centers (ICSC) Recap

Boston Realty Advisors and our affiliated auction company, Flynn | B.R.A., exhibited this week at the New England ICSC Annual Summer Show at the Boston Convention & Exhibition Center.

The turnout was light, consisting mainly of brokers and developers. The few retailers that were there (Family Dollar and Walgreens, to name a few) seemed very busy. The atmosphere at the show was positive with brokers and developers focused on leasing their centers and vacant spaces.

Unfortunately for the brokers and developers, few tenants were there to make deals, and the only ones doing so seemed to be pharmacies, supermarkets and discount retailers.

The few retail deals that seem to be happening in this climate are urban deals within the Boston city limits. The Manhattan retail market seems to be picking up, with some major lease signings occurring in Q2. Hopefully this activity will spread to other major cities in the Northeast.  

Surprisingly, no companies, except for Flynn, were talking about the collapse of the commercial real estate debt markets. No one seemed to acknowledge that this wave will take out many who currently own and develop retail properties. Most properties that have been bought or developed after 2005 that need to be refinanced in the next three years, will probably revert to the bank in most cases. That made Flynn | B.R.A.’s presence at the show that much more important.

Most folks who stopped by the booth were talking about Boston Realty Advisors’ announcement that Urban Outfitters had signed a lease in Allston. According to Costar, this represents the largest retail lease signing in the City of Boston in 2009! This shows that the fundamentals of the Boston retail market (from a lease/economic standpoint, not property value) are fundamentally strong.

The show was also buzzing about Legacy Place, set to open in the early fall. This project should defy gravity and have an amazing opening. We hear that it is nearly 100% leased, and we all agree that this will be a home run for the retailers opening. The well-capitalized developers will make this work, and make it the true trophy lifestyle center in New England.

Finally, the venue where the ICSC event was held, The Boston Convention & Exhibition Center is always great. Clean, great location and workable (just a bit too big for our little regional show), it is one of the best convention centers in the US. It was also great to have the tall ships in view from the Harbor. The Seaport District, even with the economic downturn, is quite a bright spot for the city.