Observations from the ICSC Las Vegas 2026 convention floor

This year’s edition of ICSC Las Vegas, the annual session billed as the “world’s largest commercial real estate gathering,” had it all with 25,000 industry decisionmakers descending upon Sin City in the blazing sun for three days of conversation and dealmaking. With the national retail vacancy rate hovering at an all-time low of approximately 4.3 percent, optimism surrounding the retail industry was running at an all-time high. And that translated to opportunity among the gathered retailers, development companies, and brokerage professionals.

Hall of Fame and former Duke University basketball coach Mike Krzyzewski, serving as the keynote speaker at the opening of ICSC Las Vegas 2026, presented a message revolving around the importance of teamwork and trust and urged participants to “share the great things they accomplish because that is what propels organizations to a higher level.” Coach K said “talent is critical for success but talent becomes even better when it is shared.”

The MacKenzie Companies sent a full complement of professionals to ICSC Las Vegas representing the group’s brokerage, capital markets, construction, and investment sales divisions and have the following observations as it relates to the national and local retail landscapes.

Maryland remains location of choice based on dense population and strong spending

The Mid-Atlantic region and Maryland in particular, continues to garner attention from national retailers and restaurants, as well as franchise groups, based on the area’s dense population, higher than average consumer spending habits, and low barriers of entry for new construction, according to Tom Fidler, Executive Vice President and Principal, MacKenzie Retail. But storm clouds hover in the horizon.

“Concerns are growing over the extended lead times to receive approvals and occupancy permits on the county and state level and frustrations are escalating,” Fidler explained. “In fact, it was the first time I had learned of a third-party investor backing away from a pending acquisition due to the elongated process. It is just easier to complete transactions elsewhere.” He points to Colorado, North and South Carolina, Tennessee, and Texas as areas that are particularly robust due to their business-friendly position.

Fidler said landlords are “starting to talk more about their struggling tenants, which face ongoing challenges presented by the rising cost of goods, insurance, utilities and labor.

On the bright side, every section of the retail industry feels vibrant especially the Quick-Service Restaurant (QSR) category with multiple brands growing with rapid unit expansion. “Medtail” (healthcare and medical uses in retail centers) has evolved into its own sustainable anchor in grocery-anchored neighborhood shopping venues with investors recognizing enhanced value in this use which serves local communities.

AI evolving into a practical tool to be leveraged into daily workflow

“The loudest theme I encountered during ICSC Las Vegas 2026 was the emergence of technology (read: AI) used as a practical tool to be leveraged into the daily workflow,” said Tim Harrington, Vice President of MacKenzie Retail. “AI is no longer a buzzword as it definitively impacts companies and helps them move faster, aggregate data more quickly and efficiently and tests ‘gut instincts’ against tangible metrics.”

This observation coincides with the launch of the ICSC+PROPTECH pavilion at the conference, as driven from research that suggests approximately half of all shoppers utilize AI for product recommendations. In addition, more than 75 percent of consumers indicate that technology strongly influences their ultimate purchase.

Harrington adds that AI is “not replacing judgment or quality brokers.” He said, “in retail, you cannot utilize tech to replace nuanced things such as local knowledge, relationships, timing, and true placemaking. This is the reason why it is critical to promote more in-person engagement, creativity, and forward-thinking from dealmakers to drive leasing and sales transactions. Those who really ‘leaned in’ derived the greatest amount of value out of the convention this year.”

He agrees that the QSR category remains vibrant in the Baltimore area. “Mid- to large-format entertainment and experiential users are showing up recently, with a continued emphasis on the health, wellness, medtail and franchised boutique categories,” he said.

“Brokerage professionals are encouraged to do their homework to determine which retailers have the right mix of structure, marketing and staying power,” Harrington explained, “and then educating landlords and owners on realistic rent expectations to place them in positions where they can succeed.”

Financial institutions “cautiously optimistic” and busy with deal flow

Despite interest rate turbulence and geopolitical concerns, financial institutions in general remain “cautiously optimistic” about the retail sector and busy with deal flow, suggests Jack Ward, Vice President, MacKenzie Capital. “Developers continued to search for opportunities that pencil out in the new lending environment, which is forcing the value-add strategy to the top of the list,” he said.

“Retail is among the most resilient asset classes based, primarily, on tenant demand which is driven by strong consumer spending,” Ward added. “When we see tenants close, there seems to be multiple uses ready to immediately assume the vacant space, which makes things extremely ease for owners and landlords.”

Ward adds that “acquisition opportunities remain in the local marketplace, but transactions have slowed due to the buy-sell disconnect. Spreads are tightening across the board and the competition among lender groups is increasing.”