ICSC Las Vegas Concludes with Attendees Expressing Concerns Over Excessive Deals and Limited Space

This week, Las Vegas put the retail industry through its paces again at this year's ICSC, but attendees remained optimistic due to steady business performance.

Despite challenges such as supply constraints, consumer spending issues, and theft, the primary limit on the sector's growth seems to be its own ambitions. By the end of the three-day event, the energy of attendees had dwindled, with many packing up early on the final day. Social events like the NY Developers party at LIV in the Fontainebleau helped maintain high spirits.

While the past year's predictions of equity kick-starting new developments did not materialize due to high interest rates, landlords and developers remain content with high leasing rates across the country. The retail sector has faced a tough decade, including the pre-COVID retail apocalypse, pandemic lockdowns, and the rise of e-commerce.

This high demand for quality space has prolonged deal-making and driven up rents, but landlords are offering flexible deals like revenue share arrangements. Consumer spending is down, but transaction levels in physical stores remain steady. Some executives, like Jim Dillavou of Lincoln Property Company, are raising funds to invest without relying on loans.

The sector may not have much room for growth, but avoiding regression is seen as a positive outcome.