ICSC Las Vegas

Baceline sent two team members to this year's annual International Council of Shopping Centers (ICSC) Spring RECon gathering in Las Vegas, NV. This normally over-crowded retail conventional was significantly different than previous years - attendance was down approximately 50 percent. This is evidence of the rough waters that the retail industry is currently navigating. However, there was still plenty to see and participate in. Some of the highlights and trends reported by Baceline representatives include:

• 80% of the retailers present were either fast food/quick serve restaurants or discounters of some sort
• Retailers are generally at a standstill as far as store expansions go, with some notable exceptions: quick serve restaurants, gaming stores and value teen fashion.
• Luxury retailers are taking the biggest hits to profits because of higher ticket prices and less consumer spending. Some will be forced to reduce prices.
• Retail landlords will need to work with struggling tenants and decide whether to work with and keep those they think will make it, or cut the cord and let those go they think won't make it.
• Continued layoffs will continue to impact the sector.

Baceline is well positioned on both the landlord front and the acquisition front. Baceline's assets are well positioned to attract and retain the active retailers mentioned above. Our properties are mostly in-fill locations with attractive demographics. These desirable locations result in healthier bottom lines for both the tenant and the owner.

On the acquisition front, Baceline is seeking acquisition prospects through numerous avenues. As motivated sellers continue to see declining property performance, Baceline is poised to benefit from discounted prices and re-position opportunities.