The ICSC Las Vegas 2025 conference provided a revealing look into how commercial real estate (CRE) leaders are navigating a changing economic environment. In the latest episode of Capital Rivers Connect: California Edition, CEO Greg Aguirre and Executive Vice President Matthew Tate share their perspective on the biggest takeaways from the event. Their discussion offers a strategic lens on how cities, developers, and brokers can adapt to the shifting demands of today’s CRE market.
Fundamentals and Strategy at ICSC Las Vegas 2025
More than 25,000 industry professionals convened at ICSC Las Vegas 2025. The event emphasized a return to fundamentals. Conversations centered around how to get deals done amid rising interest rates, construction costs, and tariff uncertainty. Risk mitigation, not speculation, is the new standard.
CRE professionals are prioritizing ground leases and adaptive reuse over ground-up construction. Developers want lower upfront costs and quicker paths to revenue. This environment rewards those who plan carefully and partner with forward-thinking municipalities that can demonstrate real opportunity.
Cities Must Lead With Data and Identity
Hotel investment remains a hot topic, but it requires more than a good location. Cities looking to attract lodging must present a clear brand identity and provide key documents, such as hotel feasibility studies, that reduce risk for developers.
Being proactive is the differentiator. Cities that commission their own studies and define their target visitor profiles will stand out. It’s not enough to call yourself “business-friendly” – you have to back it with clarity and preparation.
Second-Generation Space is an Undervalued Asset
The days of hiding underutilized retail space are over. Cities that embrace and promote their second-generation retail inventory are gaining traction. These spaces offer faster, more affordable entry points for expanding brands and local operators.
Experiential retail and franchise growth also took center stage at ICSC. Franchisors are still expanding, especially when paired with qualified local operators. Cities that identify potential franchisees and pair them with national brands can shortcut the typical retail recruitment timeline.
Human Judgment Still Outweighs Automation
AI and data modeling are powerful, but the message from ICSC Las Vegas 2025 is clear: experience still matters. Automated site selection tools can point developers in the wrong direction without the benefit of local context.
Retail, lodging, and mixed-use success still depend on walkability, visibility, neighborhood fit, and customer behavior. The cities and brokers who combine strong data with local insight will outperform those who rely solely on tech.
CRE Outlook: Strategic Adjustments, Not Retreat
Despite concerns about capital markets and policy shifts, CRE leaders at ICSC expressed cautious optimism. Retail is outperforming other asset classes. More inventory is expected to enter the market in late 2025 and early 2026, as developers and capital sources adjust to the “new normal” of higher yields and more strategic growth.
This reset period is a prime opportunity for cities to prepare. By aligning zoning, streamlining approvals, and actively cultivating investor relationships, local governments can position themselves to win when activity accelerates.
Listen to the full episode of Capital Rivers Connect to hear how cities can attract investment, align with market realities, and grow their economies.
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