Caution the byword as shopping center group gathers

Times can’t be too rosy when the International Council of Shopping Centers schedules a workshop at its Atlanta meeting entitled “Back to Living on Ramen Noodles: Practical Tips for Surviving in Today’s Economic Environment.”

That’s one of the sessions planned today at the Georgia World Congress Center, where the trade association is holding its annual Southeast conference through Tuesday. About 3,600 people and 315 exhibitors are expected at the event, which draws retailers, landlords, commercial real estate developers and vendors.

“I’m told registration is down a few hundred people this year,” said planning committee chairwoman Michele Del Monaco, senior vice president of leasing for Mimms Enterprises, an Atlanta commercial real estate developer.

“A lot of retailers are slowing down on their growth, and it’s an indication of what’s going on with the economy right now,” she said. “People are holding back and are cautious. There are a lot of empty retail spaces out there.”

Faced with soaring gas prices and less money in their pockets, consumers are simply choosing to stay home more and eat out less, Del Monaco said.

Hardest hit have been restaurants and high-end stores. Even when customers do sit down at a nicer restaurant, Del Monaco said, they’re more likely to opt for water than wine with their meal.

“A lot of retail tenants have called me and said, ‘I’m scared,’” she said.

On the other hand, August sales were up at wholesale clubs and discount stores.

“There’s a lot of uncertainty out there, with people waiting to see who gets elected president and the impact of that,” said convention attendee Harold Shumacher, an Atlanta restaurant broker. “People are very guarded.”

Despite the drop in attendance at this year’s ICSC conference, he said, “The core constituency of deal makers, landlords, developers and tenants will still be there because they have to be.”

“Those of us who are older have been through this before,” Schumacher said. “Sure, we’re not happy about things being slow right now. But what goes up must come down. The question is, how long is the recovery going to take?”

Del Monaco said she expects positive news to come out of the conference.

“Business is still growing in Atlanta,” she said. “It’s just not growing as fast.”

With so much retail space on the market right now, Del Monaco said, “People are here at this conference looking to make deals.”