Newmark managing director and executive vice president Sean Crosby will be among the panelists at Connect Retail West 2026, set for November 17 in Los Angeles. The session, titled “Capital Flows, Transactions, and Valuation Trends in Western Retail,” will explore how tenant demand, leasing patterns, and asset positioning are shaping transaction activity and the next phase of retail investment. Drawing on a 25-year focus on valuations, Crosby offers perspective on why brick-and-mortar retail has emerged from the pandemic period as one of the stronger property sectors.
Crosby notes that extended time at home during the pandemic underscored how important social interaction is for consumers, who were relying heavily on delivery services. As health restrictions eased, he observes that many people actively sought out in-person experiences, creating more opportunity for retailers and restaurants that provide experiential and entertainment-oriented environments. This renewed appetite for gathering and experiences has supported tenant performance and, in turn, asset-level performance for well-positioned retail properties.
On the capital side, Crosby highlights the ongoing weakness in the office sector since COVID, remarking that it has yet to fully recover and may only do so in certain submarket-specific niches. As office has struggled, he sees that more interest and capital have shifted toward retail investments, intensifying competition among buyers. This dynamic has contributed to lower cap rates and higher pricing for many good quality retail assets, particularly those that align with evolving consumer preferences.
Within Southern California retail, Crosby identifies top-performing formats and locations. He points to high-quality lifestyle centers with strong draws such as theaters and restaurants, as well as well-located grocery-anchored centers, as key resiliency winners. High-street retail has also recovered meaningfully, with the Beverly Hills Triangle cited as an example where rents are now above pre-COVID peak levels. These outcomes emphasize how quality and tenant mix intersect with location to sustain demand and pricing power.
Crosby stresses that valuations are heavily influenced by factors beyond individual property attributes. Consumer patronage, he explains, is tied to trade-area demographics and spending patterns, making local and regional economic conditions central to retailer site selection strategies. Strong tenant selection and locations that support a high probability of backfilling space when tenants roll are important inputs to rent levels and cap rate decisions, and therefore to overall asset valuations.
Comparing asset classes, Crosby references his broader experience but reiterates that his work has been especially retail-focused during his tenure at CBRE and Newmark. He notes that downtown Los Angeles office conditions remain soft, while areas like Century City are achieving new high-watermark office rents. He also points to low-rise creative office in locations such as Culver City and Playa Vista as a continuing niche of strength, underscoring that performance in the office sector is highly dependent on both submarket and product type.
