Navigating the Future of Retail: Key Insights from ICSC Las Vegas 2024
The retail landscape is constantly evolving. At ICSC Las Vegas 2024, industry leaders from across the board – developers, investors, leasing professionals and tenants – gathered to discuss the future of retail. The conference offered a wealth of expertise and thought leadership, highlighting emerging trends and strategies for success in this complex environment.
Emerging Trends in Retail
Several key trends emerged from the discussions at ICSC Las Vegas 2024, reflecting the industry's current focus areas and future direction:
1) Foot Traffic and Dwell Time is King
Retailers and developers are recognizing that creating spaces where consumers want to spend time can significantly impact profitability. There is a greater focus not only on attracting people to your project, but also on figuring out how to keep them there longer. A balanced mix of tenants, including lifestyle and experiential offerings, is essential to driving engagement and satisfaction among shoppers. For instance, Legacy Union in Charlotte, North Carolina, features offices, retail shops, restaurants, hotels, residences, a parking garage, public green space and a pedestrian promenade leading to Charlotte’s Bank of America Stadium.
2) Fitness as a Daily Needs Driver
Fitness centers are becoming anchor tenants in neighborhood centers, driving foot traffic, establishing routine visits and encouraging cross-shopping. In conversations at the conference, Jim Dillavou , National Head of Retail Investments, highlighted our team's focus on incorporating fitness tenants at our projects, underscoring its strategic importance.
3) Local Market Knowledge Matters
Understanding and adapting to local market factors remains critical for successful retail projects. Whether developing, buying or redeveloping, the ability to tailor strategies to local demographics and preferences can make or break a project. Our team exemplifies this by emphasizing local market insights into our decision-making processes.
4) Mixed-Use Developments and Experience-Driven Spaces
The industry is moving towards integrating residential, office and recreational components to create vibrant, experience-driven environments. This approach attracts diverse groups of people and enhances the overall value and appeal of retail properties. Gates of Prosper in Prosper, Texas, a multiphase shopping center development, is one such project where Lincoln has been leading the commercial portion of the 800-acre site since 2016.
5) New Construction Trends
The COVID-19 pandemic has had a lasting impact on construction costs, supply chain dynamics and labor availability. Projects are taking longer to complete due to delays in material availability and ongoing supply chain issues. However, these challenges also present opportunities for innovation and resilience in project management and development strategies, which is something Cortney Cuddihee , Vice President of Construction, is very focused on.
ICSC: A Pillar of Retail Networking
Jim Dillavou has attended the conference since 2007. He highlighted the importance of maintaining connections in this relationship-driven business. According to Jim, ICSC is more than just a conference; it's a hub for staying ahead of the curve by gaining insights into market dynamics and industry thinking for the upcoming year.
David Lewis , Vice President of Retail Leasing, a veteran of ICSC with 35 years of attendance, noted a significant shift in how meetings are conducted at the conference. The adoption of digital materials and technology has transformed interactions, making meetings more efficient and data-driven. For newcomers to ICSC, David advises starting early, preparing comprehensively and ensuring that meetings are substantive and meaningful.
Embracing Change and Moving Forward
ICSC Las Vegas 2024 underscored the dynamic nature of the retail industry and the importance of staying informed and adaptable. Industry professionals who seek to thrive in this evolving landscape must focus on creating engaging and experience-driven retail environments, leveraging technology to enhance efficiency and remaining attuned to local market needs and trends.
Lincoln has attended ICSC for 25+ years and we look forward to 25 more!