Key Takeaways from ICSC 2024: Optimism and Growth in the Retail Market
The International Council of Shopping Centers (ICSC) 2024 event in Las Vegas once again proved to be a premier gathering of dealmakers and industry experts, bringing together thousands of professionals driving commercial real estate’s innovation and evolution. This two- to three-day event in May was a hub of activity, featuring insightful discussions, networking opportunities, and a palpable sense of optimism within the retail sector. Here are the key takeaways from this year’s event:
Renewed Optimism in the Retail Market
The atmosphere at ICSC 2024 was buzzing with positivity, reflecting a renewed sense of confidence in the retail sector. Industry leaders and experts highlighted retail’s resilience and adaptability, noting significant improvements and a strong performance compared to other commercial real estate divisions, such as office spaces. This optimism is driven by increased consumer spending and innovative retail strategies that capture the interest of tenants and landlords.
The Evolution of Retail Space
Retail environments are evolving to include non-traditional tenants like coworking spaces, healthcare clinics, and experiential stores. Mixed-use developments are on the rise, combining retail, entertainment, dining, and residential elements to form lively community centers. A Thought Leadership report released by MWCRE unveiled how this trend is impacting areas like downtown Salt Lake City. With the emergence of developments like the Post District, the goal is to provide a mix-use development that combines retail, entertainment and living.
Shorter Lease Terms
According to Slatt Capital, shorter lease terms are gaining popularity due to the demand for flexibility in a fast-paced market. This allows retailers to adapt quickly to consumer preferences and market dynamics.
Remodeling Vs. New Builds
Retailers favor remodeling existing stores over new construction for efficiency and quicker returns, adapting to consumer trends. However, finding investment opportunities remains challenging due to the gap between buyer and seller expectations, combined with high interest rates, development costs, and municipal delays.
Drive-Thru Trend
The popularity of drive-thru services for food and beverages is increasing due to the growing trend of on-the-go lifestyles. Moreover, retailers are increasingly opting for stand-alone stores to enhance their control over brand identity and customer experience.
The ICSC event is not only an opportunity to learn about retail CRE trends on a national and global level and network with brokers across the country but also a time for Utah’s commercial brokerage community to come together. MWCRE, along with Utah Alliance for Economic Development and other real estate brokerage firms, hosted the ICSC Utah Kick-off party at Top Golf in Las Vegas, hosted the ICSC Utah Kick-off party at Top Golf in Las Vegas. This year’s event was particularly significant as it marked a record-high turnout, reflecting the growing interest and engagement within the industry.
“The energy and enthusiasm at this year’s kickoff party were palpable”, said MWCRE agent and ICSC Utah Committee Member Adam Lewis. “It’s incredible to see our community come together and support each other in such a dynamic environment”.
The ICSC Utah Kick-off party has become a cornerstone of the annual conference, showcasing the unity and innovative spirit of Utah’s commercial real estate sector.
Sources for this report include: MWCRE, Slatt Capital
