The untold story of open-air retail’s success
How the American Consumer’s desire for value and experience is driving Open-Air Retail’s success
A letter from our ceo
We’re in an era of creative destruction. Outdated models are disappearing, replaced by a smarter, faster, value-driven retail machine.
Retail isn’t in a cyclical rebound. It’s undergoing a structural transformation. Those clinging to the old playbook are already behind.
Post-2008, the media wrote off brick-and-mortar. Construction halted. But retailers adapted. Omnichannel became essential. Development stayed tight. Now, space is limited and demand is high.
Despite the noise, the facts are clear: Retail is thriving. Supply is scarce. Value leads. And this is just the beginning.
At DLC, we didn’t chase trends. We prepared for them. This is our perspective. No fluff. Just the facts.
adam ifshin
Founder and CEO
Retail isn’t rebounding—it’s transforming. Those clinging to the old playbook are already behind.”
ADAM IFSHIN
FOUNDER AND CEO, DLC
THREE PILLARS OF OPEN-AIR SUCCESS
In all economic cycles, open-air suburban retail is safe, resilient, and delivers strong returns.
THE CONSUMER
The keen desire for value and experience is reshaping retail with Gen Z leading the way.
the retailer
Financially strong, data-smart, and adaptive retailers have emerged as winners and are scaling for growth.
the real estate
More efficient operating costs and a bold new tenant mix fuel higher returns.
The consumer has spoken.
in-store dominates.
And today’s consumer is loud and clear about what they want:
- Value – Stretch every dollar. Shop smart. Looking for deals.
- Experience – Make it worth the trip. A place to discover and enjoy.
- Convenience and speed – Proximity matters. If it’s not near home or easy to access, it’s not worth it.
%
THE PERCENTAGE OF RETAIL SALES THAT OCCURS AT THE Physical store. the pace of erosion is slowing as online growth stabilizes.
Delivery adds fees, tips, and markups. Consumers are cutting back—and ditching delivery.
the future is bright.
Gen Z loves to scroll AND shop.
Retailers have taken note and are changing the in-store experience to meet their digital habits.
of Gen Z enjoy shopping in physical stores compared to 35% of Boomers.
of Gen Z shop in-store at least once a week, vs 65% of Boomers.
%
of Gen Z often buy online and pick up in store. They also leverage the convenience of stores for returns.
Despite volatility,
consumers are
in a good spot.
Retailers are leaning in!
Retailers that understand the consumer’s value-seeking mindset are winning sales and market share.
The consumer is the stalwart of the American economy.
Real wage recovery in 2023–2024 is empowering consumers to spend again — especially in value oriented retail.
retailers are retooling
margin-minded
Stronger balance sheets, better inventory discipline, and tighter cost controls are powering sustainable growth.
margin-minded
Retailers aren’t just changing store formats — they’re bringing in C-Suite leaders who can adapt NOW.
data-driven decisions
From site selection to dynamic pricing and customer loyalty, data is now central to how retailers grow, invest, and succeed.
STORE GROWTH SIGNALS A BOLD FUTURE
Store growth signals a bold future
Leading value retailers are GO GO GO and betting big on physical stores in 2025—and they’re doing it at DLC-owned and managed properties.
"The light bulb is going off in investors' heads about the store and
e-commerce not being mutually exclusive. It's additive because it's
cost-efficient. Investors are buying into the fact that the store is
critical as part of a broader omni-channel supply chain."
— Adam Ifshin, CEO of DLC Management
value is winning in retail.
Over the last 20 years, while others feared a retail apocalypse, smart players built empires—driven by value, efficiency, and formats that match real life. The truth? Retail isn’t dying. It’s just rewarding what works.
Changes in the c-suite.
Since 2024, RetailStat has tracked 140 major executive changes, including 85 new CEOs across 26 sectors, as top brands like CVS, Starbucks, and Ulta reshape leadership to spark innovation and adapt to market shifts.
This isn’t just turnover; it’s a strategic recalibration to reshape retail’s landscape.
“The number of CEO changes has been more dramatic than we've seen in the past, which says businesses
need a refresh.
I've always had this theme of retail is a roller coaster. You need to remodel, reinvent, and remerchandise in
order to be at the top, and it seems like that's happening.”
Dana Telsey, Chief Executive Officer/Chief Research Officer, Telsey Advisory Group
VIa Retail Retold Podcast episode 306
Retail's C-suite turnover reflects a broader strategic recalibration—not just reaction to market pressures, but a proactive move to reshape the future.
TODAY’S RETAIL GROWTH IS SURGICAL,
DATA-DRIVEN, AND CONSUMER-INFORMED.
"Data has redefined site selection. Retailers are now making decisions with precision and confidence—no more guesswork, no more hesitation. But data alone isn’t enough. There’s still unmatched value in walking the market, feeling the energy, and understanding the community firsthand. When you blend powerful analytics with on-the-ground insight, brands aren’t just picking locations—they’re finding the best spaces. The result? Faster lease-up, stronger rent, and a thriving landscape for landlords.”
Franchises on the rise.
THE RISE. Franchising is a powerful, often overlooked engine of retail growth—meeting local demand with scalable, service-driven models. With efficient operations and deep community ties, franchises are quietly transforming retail as traditional players face disruption.
Franchising is a hidden force behind retail’s success, fueling growth and expanding market reach for retailers.
- Scalable business models: Proven concepts are easily replicated across diverse markets.
- Local expertise: Franchisees bring community knowledge, creating authentic local connections.
- Operational efficiency: Streamlined systems and brand support reduce risk and accelerate growth.
- Service and convenience focus: Many franchises cater to everyday essentials and personal services, aligning perfectly with evolving consumer habits.
While headlines focus on bankruptcies, e-commerce wars, and bold retail reinventions; franchises are reshaping the retail landscape.
where retail wins.
Supply and demand
Supply is at an all-time low, driving historic occupancy.
Changes to the lineup
Did you ever think you’d go to your dentist in an open-air shopping center?
Lean, mean, $ making machine
It’s simply more efficient to operate an open-air shopping center, driving better returns.
Low supply + HIGH demand = value creation
Retail is on fire — with demand crushing supply.
- From 2021–2024, retail absorption doubled new deliveries.
- Retail is the only sector where space is getting snapped up faster than it’s being built.
Translation?
Less new space. More tenant demand.
Rents rise. Lease-up speeds up. Investors win.
THE NEW TENANT MIX: MAXIMIZING VALUE
New Mix, Stronger Performance
🛒 Essential Retail
Grocers and discount chains drive consistent traffic
🏋️♂️ Services & Wellness
Gyms, med spas, dental, vet, and urgent care add daily relevance
🍽️ Experience Anchors
Dining, beauty, and specialty fitness increase dwell time
🏷️ Off-Price & Value
Ross, Burlington, and Five Below thrive on value-seeking behavior
Bottom-Line Impact
📊 Higher Visit Frequency
Better performance per square foot
🛡️ Growing Sales Per Square Foot
Stronger valuations
⏱️ Lower Churn
Less downtime, faster leasing
Retailers focused on value and services have seen double-digit sales growth since 2020.
— Placer.ai, 2024
Open-air centers have seen up to 20% NOI growth post-pandemic due to evolved tenant mix.
— Green Street, 2024
OPEN-AIR: EFFICIENCY THAT DELIVERS OUTSIZED RETURNS.
No enclosed common areas = lower operating expenses
Smaller building footprints = less maintenance + faster buildouts
Less HVAC, less CAM, fewer headaches
Open-air centers can operate at 30–50% lower OpEx than enclosed malls
— ICSC, 2024
good dirt is going fast.
We don’t chase headlines.
We build value.
Our team, partners, and portfolio outperform – because we invest where consumers are headed.
Connect with our team today.
Jonathan wigser
evp and chief investment officer
914.304.5654
JWIGSER@DLCMGMT.COM
Adam greenberg
svp AND HEAD OF leasing
443.528.3412
AGREENBERG@DLCMTMT.COM
aaron wu
svp and head of acquisitions
914.304.5680
AWU@DLCMGMT.COM