During the second of four panels at Connect Retail West 2025 in Los Angeles, Retail Leasing Trends: Unblocking Value in a Shifting Market, veteran brokers, developers, and designers offered a candid, often optimistic look at the evolving West Coast retail landscape. The panel, made up of representatives from Matthews, Simon Property Group, KWP Real Estate, and architecture firm RDC, focused on shifting consumer behavior, the rise of experiential tenants, and the need for landlords to reinvest in their properties.

Panelists agreed that the pandemic accelerated changes are already underway. Coffee concepts and boutique fitness now dominate tenant inquiries, said Michael Pakaravan of Matthews, noting that consumers are yearning for an opportunity to connect after years of isolation. Lifestyle and wellness brands continue to outperform legacy retailers, while entertainment concepts are playing a larger role in extending shopper dwelling times.

For urban markets such as downtown Los Angeles, the shift has been even more dramatic. Justin Weiss of KWP Real Estate described a surge in experiential deals to backfill large vacancies, including indoor-outdoor sports operator Ballers, an 80,000-square-foot arcade and bowling concept, and a new Asian grocer. Weiss said many tenants, especially smaller regional brands, lack the capital or appetite for lengthy permitting processes, making turnkey, landlord-delivered spaces essential.

“Invest upfront,” he urged owners. “The probability of success goes up exponentially.”

Designers are seeing similar trends. Mitra Esfandiari, partner at RDC, emphasized research-driven placemaking and community-focused environments. She pointed to projects such as Erewhon and Rivian’s adaptive reuse of a historic theater as examples of how experiential design builds loyalty.

Representing the institutional side, Matt Sebree, of Simon Property Group, said demand at top-tier centers remains strong, with many assets more than 95% leased. Simon now uses short-term deals for promising local operators but otherwise adheres to traditional credit and leasing standards. “We reinvest and reinvent,” Sebree said. “As long as you stay relevant to what people want, you’ll keep your consumer.”

Panelists closed with simple advice: invest early, understand your community, prioritize relationships, and get back out into the field. “It’s the people,” Weiss said. “That’s why we’re in this business.”

Deal Volume Snaps Back, But Headwinds Remain: Industry Panel Maps Retail’s Three-Year Swing

The third panel, Getting Deals Across the Finish Line, included Shaunt M. Kodaverdian, the moderator; Cody Charfauros of Slatt Capital; David Chasin of Pegasus, and Shauna Smith of Chicago Title.

At a lively and at times blunt industry panel, the consensus is that retail real estate has roared back to life, with 2025 transaction activity returning to pre-pandemic 2019 levels after years of volatility. Together, they described a dramatic three-year swing in deal volume. Chasin said Pegasus’ investment sales business fell 75% from its 2022 peak but is now up “200% year-over-year,” with buyers re-entering the market, 1031 exchange deadlines approaching, and bonus depreciation fueling year-end urgency.

Both Chasin and Charfauros said their firms are tracking deal activity nearly identical to 2019 levels. “We’re right back to the trend line,” Charfauros said, attributing the rebound to stabilized interest rates, improving sentiment among private capital, and institutional buyers beginning to return to strip retail.

Still, panelists warned of growing complexity. Smith said underwriting now routinely involves construction holdbacks and mezzanine layers as owners reposition centers for experiential and mixed-use concepts. Charfauros noted that deals are taking far longer to close, not due to financing delays but simple inertia. “Nobody feels like they have a gun to their head anymore,” he said.

Much of the conversation centered on Los Angeles, where panelists said political uncertainty, rising insurance costs and tax concerns are pushing investors to look elsewhere. Chasin bluntly described LA as “toast,” citing clients who are deploying capital in markets ranging from Phoenix and Salt Lake City to Nashville, Tampa and Charlotte.

Despite those challenges, the panel agreed on one theme: retail’s fundamentals remain strong. “It’s a cash-flow business,” Chasin said. “And right now, retail has the tailwinds.”

The fourth panel, Navigating Supply Chain Disruptions and Uncertainty, included Jacqueline M. Moore of Pacific Merchant Shipping Association and Erin Poulson Morris of Wonderful Real Estate. The discussion focused on, in addition to supply chain disruptions, escalating tariffs, shifting trade routes and geopolitical shifts, which all impact retail location strategy.