Chamber forges powerful retail partnerships at ICSC New York

The Chamber’s Tammy Fate, center, poses with Monica Ann Wittrock of Oklahoma City’s Pegasus Group during ICSC New York last month. On the right is Marcus Elwell, also from the Chamber. Photo courtesy of Monica Wittrock.

2024 is expected to be a big year for the retail industry. Robust brands want to expand brick-and-mortar stores, but space has been hard to find. That was the message of ICSC New York last month. More than 7,500 retail industry professionals attended the event including Tammy Fate, Greater OKC Chamber’s director of retail development and recruitment.

“ICSC is where a lot of connections start,” said Fate. “It’s an opportunity to reach out to developers and let them know about the assets available in the Oklahoma City market. We’re also talking to potential tenants about Oklahoma City and why they need to be here.”

Industry experts at the event seemed to agree on one thing: retail will remain robust for the foreseeable future.

“Retail is now the favorite asset class,” Fate said. “COVID really showed that retail is part of the ecosystem, and retailers are investing more in the physical stores now versus online and doing everything possible to get consumers in the store. While we’ve seen some closings of big box stores here locally, we know similar retailers are absorbing that loss and that those storefronts won’t be empty for long.”

Retailers want to expand but suitable spaces are hard to find. According to the Retail Service Advisory, retail vacancies are at 4.8% - an all-time low. The tightening market coupled with the high cost of new construction has some retailers rethinking their strategy. Some who typically build standalone stores are now considering second-generation space in existing properties. Fate wants to make sure developers know what Oklahoma City has to offer.

“Investors are looking for opportunities in growing markets like OKC,” said Fate. “One of our key points in these discussions is the business-friendly climate that exists in OKC and our history of success.”

Another hot topic at the event was the possibility of the U.S. Federal Reserve cutting interest rates three times this year. If that happens, retailers could be busy this summer.

“With lower interest rates and more capital available, more properties can be purchased,” said Fate. “That allows retailers to find the space they need while also enabling retail landlords to redevelop their properties to make them more attractive to potential tenants.”

Fate said she had several productive meetings during the event. She is also planning to attend ICSC Red River in Dallas Jan. 31 - Feb. 2. Fate is on the planning committee for that event and a past chair.

This article originally appeared in the January 2024 edition of VeloCity newsletter.