Inside the Resilient Future of Retail: Consumer Strength, Omnichannel Strategy, and the Rise of PropTech
In this insightful conversation recorded live at ICSC Las Vegas, DLC Founder and CEO Adam Ifshin sits down with ICSC President and CEO Tom McGee to explore the current state and future of retail real estate. This high-level discussion touches on key industry trends, including consumer resilience, leasing demand, development challenges, and the growing importance of PropTech in commercial real estate.
Tom McGee highlights the resilience of the American consumer, noting that despite economic uncertainty, rising interest rates, and inflationary pressures, retail spending remains strong. He emphasizes that a healthy job market continues to fuel consumer confidence and spending power, which in turn supports strong fundamentals in the retail real estate market.
The conversation also focuses on retailer performance and expansion trends. McGee points out that retailers are adapting to evolving consumer expectations by using physical stores as omnichannel fulfillment centers. He reaffirms that well-located, open-air shopping centers continue to see high demand, reinforcing the long-term value of existing space, especially in a development-constrained environment.
Adam and Tom dig into the supply-demand imbalance in retail real estate, noting that limited new development—combined with demolition of obsolete properties—has led to a chronic undersupply of quality retail space. Even as some developers begin to “dip their toes” into new projects, high construction costs and labor challenges are making large-scale development economically difficult.
One of the standout moments in the conversation is Tom McGee’s preview of ICSC’s PropTech 2026 initiative, which aims to launch the largest commercial real estate PropTech event in the world. This move underscores the industry’s growing interest in technology adoption to enhance retail operations and asset performance.
McGee also shares powerful data about the demographic transformation within ICSC membership, noting a dramatic increase in both NextGen and retailer participation. ICSC’s efforts to make membership more accessible, along with expanded programming for younger professionals and retailers, are driving strong engagement and long-term growth for the organization. The episode closes with a reflection on the importance of leadership and community in retail real estate. Adam praises McGee’s decade of transformative leadership, crediting him with helping steer ICSC and the retail industry through times of disruption into a new era of stability, innovation, and growth.
Takeaways
- The American consumer remains strong despite economic uncertainty, thanks to a resilient job market and continued spending.
- Retailers are adapting successfully by leveraging physical stores as omnichannel fulfillment hubs, enhancing customer experience and logistics.
- Leasing demand remains high for well-located, open-air shopping centers, driving competition for quality retail space.
- Retail real estate is underbuilt, with limited new development and widespread demolition of obsolete space since the GFC.
- High construction costs and labor shortages continue to challenge developers, slowing the pace of new retail projects.
- ICSC membership demographics have shifted, with the under-40 segment now representing over 30% of total members.
- Retailer participation in ICSC events has doubled, driven by strategic initiatives like complimentary deal-making access.
- Experiential retail is thriving, with brands like Dick’s House of Sport redefining in-store engagement and customer value.
- PropTech is gaining traction in retail real estate, and ICSC is set to launch a major PropTech event in 2026.
- Media narratives around retail are evolving, with growing recognition of physical retail’s staying power and investment potential.
