ICSC 2025 Las Vegas Takeaways
ICSC Las Vegas 2025 brought together the retail real estate industry’s leading voices, and the sentiment across the board was one of rising optimism. From investor appetite to tenant expansion plans, the retail sector is proving its resilience in the face of macroeconomic headwinds. Slatt Capital’s Michael Kaplan, John Darrow, Shannon Yarborough, and Thomas Preston were on the ground gathering insights from panels, meetings, and conversations across the convention floor. Below are some of the key trends and takeaways shaping the current and future state of retail.
- Strong Retail Demand Amid Limited New Supply
Demand in the retail sector is strong, driven by a lack of new construction over the past five years. With supply lagging behind demand, landlords currently hold the advantage. The high cost of materials continues to constrain new development, pushing many developers toward value-add and redevelopment opportunities. As Blackstone’s Andrea Drasites noted, “There has been virtually no new supply in retail over the last decade. Demand has stabilized and grown in certain corridors. Prices are still depressed compared to replacement costs—and that’s a value opportunity.”
- Retail Expansion Continues Despite Negative Headlines
Growth-oriented retailers such as Chipotle, Tractor Supply, Five Below, Ross, and TJX Companies are moving forward with expansion plans—despite media narratives highlighting retail challenges tied to tenant failures like Big Lots, 99 Cents Only, Rite Aid, and JoAnn’s. Surprisingly, many of these expanding brands are doubling down in markets where they already have a strong presence—California being a prime example, where performance reportedly continues to outpace other regions.
- Retail Remains a Magnet for Capital
As office and multifamily sectors contend with ongoing headwinds, retail is increasingly attracting investment capital. Investors are taking note of retail’s relative stability and upside potential.
- Customer Experience as a Growth Driver
Retailers are prioritizing experiential offerings to attract younger demographics. Virtual reality, food halls, and health/wellness-focused spaces are emerging as key elements in redefining the in-person shopping experience.
- Texas Investors Leaning Into Growth Markets
Sentiment was particularly optimistic among Texas-based investors, who are actively seeking opportunities in growing counties like Collin, Tarrant, Parker, and Denton. There’s strong demand for both existing and value-add strip retail across DFW infill markets. Investors remain confident in acquiring well-located assets due to consistently high occupancy and leasing demand.
- Sales Broker Sentiment Rebounding
Sales brokers generally view 2023 as the market bottom, with activity gradually improving since then. Listings are increasing, though progress remains uneven due to external variables such as tariffs, “liberation day” policy concerns, and interest rate volatility. Encouragingly, 1031 exchange buyers are returning—particularly in pro-growth, low-tax states.
- Opportunities for Value-Add Retail
Bridge lenders and debt funds are offering highly competitive spreads on value-add retail deals—especially when backed by strong sponsors and compelling business plans. The capital is there, but execution and narrative matter.
As retail continues to evolve, one thing is clear: fundamentals are strengthening, investor interest is returning, and many large tenants are leaning into strategic growth. While challenges remain—ranging from construction costs to financing constraints—the overall tone of ICSC Las Vegas 2025 was one of momentum and renewed confidence. Slatt Capital remains committed to helping our clients navigate this dynamic market with insight, experience, and a forward-looking approach.