ICSC Las Vegas Preview: Real estate industry looks to make deals in uncertain environment
In less than a week, the commercial real estate world will gather in Las Vegas for three days of informative sessions, networking, and deal-making.
ICSC Las Vegas will take place at the Las Vegas Convention Center from May 17-20. Chain Store Age recently spoke with Stephanie Cegielski, VP of research and public relations at ICSC, about the current business landscape and how the show will connect guests.
How many attendees and how many exhibitors are expected to be at the show this year?
We are expecting about 25,000 total people this year, which is on par with last year. This includes about 800 exhibitors. It’s exciting, the industry is in great shape right now despite the economic uncertainty.
Retail availability is at a recent high due to a spate of store closures. How would you describe the current commercial real estate landscape?
When we heard of store closures in the past, it was a red flag. This year, it's an opportunity. We’re at record-high occupancy rates, so there isn't a whole lot of space out there to lease, and we have a lot of retailers that want to expand. So, as we're seeing a lot of these stores closing, we're quickly seeing it leased by other brands.
I look at Bed Bath and Beyond – as soon as they announced and before they were closed, I think almost all of their boxes were spoken for. Burlington recently came out saying that they're taking some of the Joann spaces. It's a really great opportunity for some of these retailers, especially the discount retailers who are looking to expand with a much more price-sensitive consumer. Retailers are still taking space and consumers are still spending.
[READ MORE: Open for Business: Available retail space hits recent high]
I think what you'll start to see is redevelopment of some of the properties, it can be a malls or an open-air centers, that aren't performing very well and are just in need of some “TLC.” You will start to see some redevelopment there which will spur that opportunity for more space.
What strategies are landlords using to attract and retain tenants in today's market?
Landlords are being a little bit more selective in who they're bringing in. If they are a low-vacancy property, they are going to take the time to look at whose balance sheets are in the best place, who is creditworthy, and who will attract consumers to that property. Landlords are not having a hard time getting retailers who want the space.
There has been a definite shift in tenant composition. Malls, as an example, used to have a lot of apparel. Now, you are seeing many more dining options. Boutique fitness, yoga, pilates… we’ve seen this tenant diversification, and definitely food and entertainment have seen significant growth over the last seven to eight years.
What are some of the things retailers will be looking to accomplish at the show this year?
The number one thing that we hear from our members is that networking and our events are the primary reason they become members of ICSC. These connections are incredibly valuable to the work that they do on any given day. To be able to get together in one place once or twice a year and make those deals is very important to the attendees, the retailers, and the landlords. It’s really the number one reason that we hear from people who want to keep attending these events. This industry is very much about in-person contact.
Your final advice for those retailers about to descend on Las Vegas?
Give yourself some time to get from hall to hall and wear comfortable shoes!
