{"id":1004781415,"date":"2025-12-15T04:52:06","date_gmt":"2025-12-15T12:52:06","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004781415"},"modified":"2026-03-25T13:02:34","modified_gmt":"2026-03-25T21:02:34","slug":"icsc-special-report-upbeat-buzz-about-retail-plus-some-caveats","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/icsc-special-report-upbeat-buzz-about-retail-plus-some-caveats\/","title":{"rendered":"ICSC Special Report: Upbeat Buzz About Retail, Plus Some Caveats"},"content":{"rendered":"\n<p>What&#8217;s around the corner for tenant and consumer demand that will shape the retail real estate sector in the coming year? <\/p>\n\n\n\n<p>During <a href=\"https:\/\/www.commercialsearch.com\/news\/icsc-special-report-how-retail-is-leveraging-ai\/\">ICSC&#8217;s annual New York City event<\/a>, conversations with a broad cross-section of real estate professionals painted a picture of a resilient, even vibrant sector. Despite feeling the heat on multiple fronts, retail tenants are keeping demand strong, attendees told <em>Commercial Property Executive<\/em>. At the same time, retailer and consumer trends also point to some potentially significant soft spots.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Crowd_shot_2_ICSC_NYC_12-10-25_800x600.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" data-attachment-id=\"1004781412\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/crowd_shot_2_icsc_nyc_12-10-25_800x600\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Crowd_shot_2_ICSC_NYC_12-10-25_800x600.jpg\" data-orig-size=\"800,600\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1765366545&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Crowd_shot_2_ICSC_NYC_12-10-25_800x600\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Real estate professionals talk deals during ICSC&#8217;s annual New York City event. Photo by Paul Rosta for CPE&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Crowd_shot_2_ICSC_NYC_12-10-25_800x600.jpg?w=800\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Crowd_shot_2_ICSC_NYC_12-10-25_800x600.jpg?w=800\" alt=\"People in suits sitting at round tables in front of large displays and banners under a high convention center ceiling\" class=\"wp-image-1004781412\" style=\"object-fit:cover;width:377px;height:auto\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Crowd_shot_2_ICSC_NYC_12-10-25_800x600.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Crowd_shot_2_ICSC_NYC_12-10-25_800x600.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Crowd_shot_2_ICSC_NYC_12-10-25_800x600.jpg?resize=768,576 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><figcaption class=\"wp-element-caption\">Real estate professionals talk deals during ICSC&#8217;s annual New York City event. <em>Photo by Paul Rosta for CPE<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>As 2026 approaches rapidly, retail experts predicted general stability and resilience, aligning with current <a href=\"https:\/\/www.commercialsearch.com\/news\/commercial-real-estate-trends\/\">commercial property market trends<\/a>. \u201cMore of the same,\u201d as Scott Schnuckel, managing director of Americas retail at CBRE, told <em>CPE<\/em> during the two-day event at Manhattan&#8217;s Javits Center. \u201cEveryone is searching for reasons for it to shift dramatically, but they aren\u2019t coming.\u201d Consumer spending, the ultimate force behind retailer growth and leasing momentum, remains healthy as the public increasingly shops for value.<\/p>\n\n\n\n<p>This year, large-scale store closings and bankruptcies of familiar brands have made headlines in the mainstream media: Walgreens, Party City,&nbsp;Macy\u2019s, JCPenney, Big Lots and Claire\u2019s, for example.<\/p>\n\n\n\n<p>Yet those announcements don&#8217;t tell the whole story. Industry analysts noted during the conference that these store closings take place as many retailers want to grow their footprint in a market that has produced little new product in recent years. <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO<\/strong>: <a href=\"https:\/\/www.commercialsearch.com\/news\/18-cre-trends-were-taking-into-2026\/\">18 CRE Trends We\u2019re Taking Into 2026<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>One retailer&#8217;s downsizing often presents opportunity for another prospective tenant. And when multiple retailers are chasing well-located space, it ratchets up the pressure for them to make commitments. \u201cBecause of the competition, brands are losing out space because they\u2019re taking too much time to make decisions,\u201d said Nicole Larson, Colliers&#8217; national director of retail research services. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-retailers-2026-wish-lists\">Retailers&#8217; 2026 wish lists<\/h2>\n\n\n\n<p>Conference attendees noted that well-located, attractive real estate is at a premium in many major markets. As a result, \u201cRetailers are getting flexible in square footage and which markets to go to,\u201d Schnuckel said. If available space can\u2019t be found in the brand\u2019s usual preferred location\u2014say, an open-air center\u2014some retailers are willing to try an outlet center. If adequate, well-located space isn\u2019t available in a major city, retailers are willing to explore opportunities in nearby suburbs.<\/p>\n\n\n\n<p>Retailers in expansion mode are also open to schedule flexibility. If the goal is to open 300 new stores,  100 locations for three consecutive years might be too much of a stretch. Instead, the retailer may rebalance that strategy by varying the number of store openings, Schnuckel noted. <\/p>\n\n\n\n<p>What else are retailers looking for today? For one thing, they\u2019re gravitating toward newer space. Once that older space goes on the market, it stays there for a while. About 40 percent of available space has been on the market for at least 24 months, Brandon Isner, Newmark head of U.S. retail research, told <em>CPE<\/em>.<\/p>\n\n\n\n<p>Even as some retailers report record consumer sales, tenants are under increasing pressure from the same factors that are squeezing consumers. &#8220;There are a number of retailers right now that are really seeing their costs rise, especially in cities\u201d and dense suburbs, noted Isaiah Harf, Northmarq&#8217;s regional managing director for three investment sales offices in Chicago, Cincinnati and Toledo, Ohio, and the newly appointed co-leader of the firm\u2019s new net lease and sale-leaseback group. Expenses are rising in multiple categories, such as rent, labor and construction.<\/p>\n\n\n\n<p>Also concerning for retailers as next year approaches is consumers&#8217; declining confidence in their financial situation. Although retail sales are on track to rise again, Colliers estimates that growth will decline 20 basis points to 2.9 percent, Larson reported. Retailers are pulling back underperforming stores, but not at the same pace they were earlier in the year. <\/p>\n\n\n\n<p>A telling yardstick of what&#8217;s ahead for retailer performance in 2026 is just around the corner. \u201cThis holiday season will be the biggest benchmark of how the market is performing,\u201d predicted Isner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retailers are under pressure, but the demand for space remains robust, dealmakers and analysts told CPE. <\/p>\n","protected":false},"author":445,"featured_media":1004781412,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21783,23891,21742,21749],"tags":[32789,35498,33018,50999,50380],"class_list":["post-1004781415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-investment","category-national","category-latest","category-retail","tag-cbre","tag-colliers","tag-icsc","tag-newmark","tag-northmarq"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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