Operators of open-air shopping centers have competitive advantages over retail in the post-pandemic market. Their physical configuration and tenant base of essential retailers make them attractive to expanding retailers and to investors seeking stable returns.

Suburban locations are hot, Sites Centers president and CEO David Lukes said on the firm’s fourth-quarter earnings call. “The population increases in our suburban communities due to work-from-home flexibility are leading retailers to increase their store footprints in the last mile of the wealthiest suburbs.”

Restaurants, discounters, banks, warehouse clubs, medical care, delivery services and sporting goods are moving to open-air centers because they offer convenient access to these communities with ample parking, space for curbside pickup and lower operating costs compared to other formats, he added. “We are in the beginning of a multiyear trend.”

The pandemic also has accelerated longer-term trends, Brixmor president and CEO James Taylor said on his firm’s fourth-quarter earnings call. “Mall-native tenants such as Bath & Body Works, Foot Locker, Kay Jewelers, Sleep Number and Visionworks are increasingly relocating from malls to our open-air centers. An ever-growing universe of service providers is seeking to capitalize on the convenience,” he said.

Taylor said open-air centers benefit from the format’s flexibility and proximity to the consumer and from tenant demand for buy-online-pick-up-in-store. Open-air centers are increasingly appealing to retailers because of their locations near single-family rooftops, within the last logistical mile to the customer, he said. “Each one of these trends is individually significant for our business.”

What to expect at each session of this week’s ICSC Connect Virtual Series on open-air centers

Part I: Tenants’ Perspective

At 1 p.m. Eastern on Wednesday, March 10, AMC senior vice president of development and international Dan Ellis, Bed Bath & Beyond senior vice president of real estate and store development Wade Haddad, Kroger vice president of corporate real estate Nick Hodge and Planet Fitness president Dorvin Lively will share how they took on the challenges of the past year. They’ll also discuss with moderator Mike Makinen, former Site Centers executive vice president and COO, how collaborations with landlords impacted their operations.

Register here.

Part II: Landlords’ Perspective

And at 1 p.m. Eastern on Thursday, March 11, center owners and operators will address the post-COVID-19 realities of buying, selling, owning and operating open-air retail real estate. Acadia Realty Trust executive vice president and COO Christopher Conlon, Kimco Realty CEO Conor Flynn, DLC Management Corp. founder and CEO Adam Ifshin and Brixmor’s Taylor will cover grocery transformation, e-commerce fulfillment, rebirth of entertainment and restaurants, capital markets and more.

Register here.