#USA #First National Realty #Red Bank, NJ #necessity-based retail #ICSC New York

First National Realty Partners Shares Key Insights from ICSC New York 2025

On December 18, 2025, First National Realty Partners (FNRP), a prominent player in the private equity commercial real estate sector, revealed critical insights following their involvement in the ICSC New York 2025 event. This event highlighted a healthier atmosphere in the necessity-based retail sector as we approach the new year.

Michael Hazinski, the Chief Investment Officer at FNRP, noted that necessity-based retail experienced increased transaction volumes in the latter half of 2025, thanks to a stabilization in interest rates. The discussions with brokers, owners, and national retailers suggested that this positive momentum is expected to carry through into 2026. According to Hazinski, there is still a significant amount of equity and debt capital eager to find opportunities in this space.

One of the most significant takeaways from the conference was the sustained resilience observed in grocery-anchored shopping centers, which has become a key topic within the retail community. Industry signals indicated robust tenant demand and stable performance metrics across this segment. Here are some of the main insights derived from the show:

1. High Occupancy Rates

The overall occupancy rates in grocery-anchored shopping centers remain consistent with the industry standards, showcasing the ability of this asset class to attract and retain essential service providers that consumers rely on daily.

2. Scarcity of Prime Space

The availability of high-quality box spaces in well-located necessity centers is currently at an all-time low. This trend reinforces the phenomenon of 'flight to quality,' where national retailers are increasingly seeking high-quality properties to enhance their operations.

3. Strong Pricing Power

The leasing spreads for new agreements within the industry remain notably strong. Many landlords are reporting double-digit percentage increases compared to previous deals, indicating that property values are on an upward trend.

4. Preference for Longer Lease Terms

An observable shift towards longer-term lease agreements is becoming apparent in the market. Tenants are opting for renewals often extending to 10 years, compared to the typical 5-year agreements. This shift reflects greater retailer confidence in their chosen physical locations, which in turn is positively impacting the Weighted Average Lease Term (WALT) across the industry.

Sam Collier, the Chief Revenue Officer at FNRP, emphasized the importance of the retailers' commitment to top-tier necessity locations. This commitment is further highlighted by the ongoing preference for longer lease terms, which bolster the stability of the retail sector. Looking forward, FNRP anticipates robust leasing activity in 2026, driven by sustained interest from small-format food retailers and value-oriented stores.

Discussions during the ICSC New York event reiterated FNRP's perception of the durability of grocery-anchored and necessity-based retail, especially in prime locations where tenant demand remains strong and leasing fundamentals are solid.

About First National Realty Partners

FNRP offers accredited investors the opportunity to invest in institutional-grade commercial real estate, primarily focusing on the necessity-based retail sector across the United States. The company oversees the entire investment lifecycle—from acquisition to disposition—utilizing a vertically integrated platform. By leveraging its top-notch expertise in legal matters, acquisitions, and leasing, FNRP aims to create lasting value for its investors. To learn more, visit www.fnrpusa.com.