The retail real estate industry gathered in Las Vegas last month for ICSC Las Vegas 2026, the world’s largest retail real estate conference. More than 20,000 attendees, 500+ exhibitors, and 125+ retailers came together to discuss expansion plans, investment activity, consumer trends, and the future of brick-and-mortar retail.
For communities focused on retail recruitment and economic development, the message was clear: retail is not slowing down. In many ways, the industry has moved beyond recovery and entered a new phase defined by strong demand, limited supply, and increasing competition for quality development opportunities.
Retail Is Still Strong
Despite ongoing inflation concerns and cautious consumer sentiment, retail sales continue to grow. Shopping center occupancy reached 94.1 percent in the first quarter of 2026, the highest level on record, while retail openings are nearly double the number of announced closures. Physical stores still account for 86 percent of retail spending, reinforcing the importance of place-based economic development strategies.
Consumers are still spending, but they are becoming more intentional about where they spend their money. Essential retail categories such as grocery, health and beauty, and value-focused retailers continue to perform well. Communities that can demonstrate demand for these categories will remain attractive to expanding brands.
Retail Real Estate Has Become a Supply Story
One of the most common themes throughout the conference was the shortage of quality retail space.
New retail construction remains constrained, and many developers face challenges making projects financially viable. Industry analysts noted that retail demand is not the issue. Availability is. Leasing demand remains exceptionally strong while the pipeline of new projects remains limited.
For local governments and economic development organizations, this creates both a challenge and an opportunity.
Communities that have shovel-ready sites, streamlined permitting processes, infrastructure in place, and clear incentive programs are better positioned to compete for the limited number of projects moving forward. Conference speakers repeatedly emphasized that reducing development friction can create a meaningful advantage when retailers and developers evaluate new markets.
Grocery Anchors Continue to Drive Development
The grocery-anchored shopping center remains one of the most sought-after formats in retail real estate today.
Several grocers were actively pursuing expansion opportunities at the conference, including ALDI, Lidl, Sprouts, and Trader Joe’s. Many new projects are being built around a grocery anchor supported by small-shop retail and multiple outparcel opportunities.
For communities, this reinforces the importance of understanding local retail leakage, consumer spending patterns, and available real estate inventory. Retailers continue to prioritize data-backed site selection decisions, making market readiness more important than ever.
Growth Concepts Are Moving Quickly
Beyond grocery, several retail and restaurant concepts generated significant attention throughout the event.
Retailers and developers frequently discussed brands such as 7 Brew Coffee, Chick-fil-A, Dutch Bros, Raising Cane’s, Chipotle, Take 5 Oil Change, and Valvoline. Off-price retailers, including Burlington, TJX brands, Ross, and HomeGoods, continue to absorb available space across the country.
Medical retail, fitness concepts, and experiential retail operators also remain active as consumers continue seeking convenience, wellness, and experience-oriented destinations.
AI Is Changing Retail, Not Replacing It
Artificial intelligence was one of the most discussed topics throughout the conference, particularly during the inaugural ICSC+PROPTECH event.
However, the consensus among retailers and developers was not that AI will replace physical retail. Instead, AI is becoming an operational tool that improves site selection, forecasting, tenant engagement, and portfolio management. Retail environments that combine shopping, dining, entertainment, and community experiences are expected to remain highly relevant in the years ahead.
A Community Success Story Recognized Nationally
One of the highlights of the conference for the Retail Strategies team was receiving the 2026 ICSC Excellence in Community Advancement Award.
Portfolio Director Kam South accepted the award on behalf of Warrensburg, Missouri, and CMK Properties. The project recognized the successful recruitment of Tractor Supply Co. through a collaborative effort involving the city, the developer, and the Retail Strategies team. The project demonstrates how data-driven recruitment, public-private partnerships, and focused execution can help communities attract meaningful retail investment.
What This Means for Communities
The strongest takeaway from ICSC Las Vegas 2026 is that communities cannot afford to wait for a retailer to express interest.
The markets attracting new investment today are proactively preparing sites, building relationships, understanding their data, and positioning themselves before opportunities arise.
Retailers continue to expand. Capital continues to flow into retail real estate. The question is whether communities are ready when those opportunities arrive.
Download the Full ICSC Las Vegas 2026 Post Conference Report
Our team compiled a detailed summary of the trends, retailer activity, investment insights, and community takeaways from this year’s conference.
Download the full ICSC Las Vegas 2026 Post Conference Report to learn:
- Which retailers are actively expanding
- Emerging retail and restaurant concepts to watch
- Investment and development trends shaping the industry
- How AI is influencing retail real estate decisions
- What communities can do now to become more competitive
Download the report today and start preparing your community for the next wave of retail growth.
