ICSC: Real estate trends to watch in 2025
Mixed-use center developers that are creating a buzz — and positing themselves for longevity — are designing spaces that drive engagement and highlight experiences.
“The ongoing success of mixed-use centers is focused on quality not quantity,” said Brandon Eisner, Newmark’s head of research retail, at the recent ICSC event in New York City.
“Property developers need to design for consumer demand,” he added. “They need to envision what brands offer the services and experiences that customers need. Curating the way they always have is why shopping centers become stale. One size no longer fits all.”
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The event revealed multiple trends that are influencing design priorities for developers across the nation. Here is a recap.
Attract younger shoppers Millennial and Gen Z shoppers are among the retail industry’s biggest
revenue opportunities. Mixed use operators that can provide exceptional, non-commoditized experiences for these demographics will raise the bar going forward.“These customer segments are used to shopping with their fingertips, but they also demand real-life experiences that capture their attention,” said Stenn Parton, founder and CEO of mixed-use operator Prism Places. “Properties that offer joyful, thoughtful merchandise and leverage engagement can change the game and grab let shoppers flex their spending power.”
Create gathering spaces Shoppers are no longer attracted to mixed-use centers through traditional anchor tenants. Shoppers are demanding more space to socialize — and developers are responding by featuring innovative gathering spaces. From pickleball courts and entertainment venues to green spaces that host fitness classes and concerts.
“Developers understand the value of creating a sense of community and delivering experiences that are exciting to participate in,” Barrie Scardina, president of Americas retail services, agency leasing & alliances for Cushman & Wakefield, said during the session, “The Right Mix.”
- Focus on wellness Consumers have a renewed focus on health and wellness. Local shopping centers that respond to their needs will drive returning and loyal visitors. Services customers expect run the gamut from fitness classes, access to medical services for themselves — or pets — even access to electric bikes to travel to and from shopping centers.
“Success relies on landlords with open minds,” John Fahey, senior VP and managing principal, SRS Real Estate Partners, said at the event. “New concepts are important to achieving the right balance of retail and experiences. The more innovative the ideas, the stronger the overall health and longevity of the shopping center will be.”