The annual ICSC spring convention is a very good barometer of the condition of our industry

I always find the annual ICSC spring convention to be a very good barometer of the condition of our industry. This year was really interesting. Watching the attendance numbers as the convention neared it appeared that the numbers were going to be drastically off, as so many people predicted. However as we got down to the final days before the show, attendance numbers steadily rose. All in all there appeared to be a similar volume of participants walking the floor this year as there was last year. The one discernible difference though was a noticeable decline in the number of retailer's representatives attending the show this year. The most popular questions of the show: "How are you finding the market?," and "Have you felt the slowdown yet?" The simple answers: Tenants, although doing deals, are more hesitant than usual, and considering that the "rental bar" is typically set higher in the New York Metro market, I do not know the extent that we ever really feel the full effects of these blips in the national economy. Our sector of the industry has experienced similar "adjustments" in the economy before and most seasoned professionals in our industry won't let a minor economic downturn similar to the one we are currently experiencing cause them to pack up their tents. With that said however, the pace of deal-making did appear to slow down a little, obviously the result of retailers responding to this adjustment in the economy and becoming alarmingly cautious about new deals. It appeared that tenant reps seemed more concerned about their own job security, than seeking out deals to assist their companies navigate through uncertain times. I found more often than not this year that companies have drastically cut back on the number of representatives they sent to the convention. Even worse, many have eliminated important real estate positions in key markets completely, obviously oblivious to the fact that their portfolio of locations is an important asset. Now is not the time to run and hide, now is the time to bolster your staff with seasoned individuals capable of micro-managing. Hire professionals capable of determining how to divest troublesome locations while replacing them with better, more efficient properties. Most of the nation's metropolitan markets as well as the regional highway markets remain strong. Those centers previously financed and slated to come out of the ground this year and next will continue to do so. Developers will undoubtedly become more aggressive than ever to lease up these properties. But how many of these opportunities will be missed because executives remain short sighted about the importance of their real estate departments? Does saving a salary or two really compare to the millions potentially left on the table? I believe that companies in trouble might literally be saved if their real estate is put under a microscope by the right team of seasoned professionals. I recently read that the ICSC predicts store closures will be up this year over last by some twenty-five percent, translating to over five thousand store closures in 2008. This news, although alarming in context, may actually translate to good news for certain retailers and developers, depending of course on their respective philosophies. Large retailers who have access to expansion dollars have traditionally employed global philosophies, expanding stores into every possible market. This philosophy is very well suited for a strong economy, but as our economy struggles these global thinking retailers who are still committed to expansion will need to employ a more case-by-case philosophy. Store closures may now present unique opportunities for retailers. On the one hand allowing them to shed themselves of under-performing "fringe" locations, which they took for the sake of having a presence in certain markets, and on the other hand, to capitalize on competitors closures in an effort to reposition themselves into better locations which they were previously closed out of, usually at substantially lower occupancy rates than ground up developments. So taking into account that this is just a temporary adjustment in the economy and it will rebound shortly as it always does, now is not the time to slash real estate budgets. Rather, this is the time to bolster the budget and posture your real estate department to take advantage of opportunities now as the demand wanes, because as the economy strengthens once again, demand will increase exponentially. Robert Delavale is the director of leasing for Breslin Realty Development Corp., Garden City, N.Y.