ICSC kickoffs today (unofficially). Thousands of commercial real estate decision makers are making their way to Las Vegas for the International Council of Shopping Centers’ conference, where there’s days of dealmaking and flaunting on the show floor and nights of partying — it is Sin City after all.
ICSC anticipates more than 25,000 attendees will walk through the doors, according to a press release. But things will look a little different this year. The event begins with “Professional Development Day” at the Wynn Las Vegas on Monday, and the exhibition takes place Tuesday and Wednesday.
Monday’s keynotes include Meta boss’ sister and media exec Randi Zuckerberg, broadcast star Erin Andrews and college basketball coach Mike Krzyzewski. Not exactly a who’s who in the retail space.
Off the books, some invite-only events that we’ve heard about include Prism & Partners’ Carbone Riviera drinks and appetizers, Macerich’s cocktails at Caesars Palace, Newmark’s bash at Marquee, Meridian Capital’s mixer at a private club at the Wynn, a New York developers’ poolside party at LIV Beach and more.
Retail pros certainly have reasons to celebrate. The sector is stable. The average national retail asking rent increased by more than 2 percent year-over-year to about $25 per square foot, per the latest CBRE data. That is largely thanks to tight supply due to historically low construction completions and positive net absorption.
Retail availability rate rose very slightly to 5 percent, but that was mostly due to some retailers filing for bankruptcy, which resulted in store closures. Hint: Saks Global. Grocery-anchored centers are doing better than your older malls, and suburban retail is still outperforming retail downtown, which isn’t great for markets like Manhattan or Los Angeles. Those two had higher availability rates than spots in the Sun Belt.
Still, in Los Angeles there were deals to be had. Big ones. The Real Deal broke the news that Ben Ashkenazy sold his Beverly Connection to Cedars-Sinai for about $270 million, and later learned the hospital doled out another $34 million for some of the land below the mall.
But back to ICSC. Here are some things execs and others are thinking about and looking forward to:
Datex Property Solutions’ Mark Sigal has been an ICSC attendee since 1989. He called it a “petri dish” and “temperature check” on the sector, the economy and proptech. Plus, on the show floor, the general vibes and conversations are subtle, and not-so-subtle indicators for retail’s short-term outlook.
“There is no substitute for looking people in the eyes,” and “probing them on hot topics,” he said. “ICSC Vegas is a trip, literally and figuratively.”
Cain’s Larry Green is scoping out contenders for its luxe megadevelopment One Beverly Hills. “Heading into ICSC Las Vegas, we’re focused on connecting with new and established retail and F&B concepts looking to enter the Beverly Hills market but unable to find available space in what has been one of the world’s tightest retail markets for decades.”
JLL’s Naveen Jaggi said the conference is a chance to make predictions about the second half of the year. “One thing I’ll be watching closely in Vegas is how institutional investors feel about their assets and the relative strengths and weaknesses of their portfolios.”
Vestar’s Kean Thomas and his team are looking to make deals and chat up clients. “With availability low, deals are getting done when both sides get creative, which is what we do well,” he said.
Northmarq’s Ani Paulson is ready to talk debt. “With a large wave of loan maturities on the horizon, I’m looking forward to advising clients on how to navigate what’s next,” she said.
NewMark Merrill Companies’ Edie Trott wants in on the AI conversations. It’s “no longer a future-state conversation — it is actively reshaping our industry. I’m interested in how companies are moving from experimentation to implementation.”
Will the reality of ICSC meet the expectations of attendees? Stay tuned.
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