LAS VEGAS—Now that ICSC Las Vegas has wrapped up after drawing record crowds, the buzz from the convention floor continues to highlight the remarkable resilience of the retail real estate sector. Ron Meyers, chief leasing officer at Phillips Edison & Company, credits this resilience to a blend of evolving consumer habits and tight supply dynamics.
In an exclusive conversation with GlobeSt.com, Meyers outlined five major trends shaping the current retail landscape from both the landlord and retailer perspectives.
Vacancy rates are at historic lows, giving landlords a distinct advantage in tenant selection and lease negotiations. This tight market allows property owners to be more selective in curating their tenant mix, pushing rents to market rates, and achieving strong operational results. While it’s clearly a landlord’s market, he emphasizes that aligning with the right tenants remains essential.
Retailers are also adapting by embracing smaller store formats, typically between 2,000 and 3,000 square feet. These compact spaces aren’t just about cost savings—they offer strategic flexibility and allow brands to expand into more locations while maintaining healthy unit economics. Meyers notes that many tenants are adopting this model to support growth and adaptability.
Suburban markets are outpacing their urban counterparts as migration patterns continue to shift. Meyers points out that suburban locations offer less competition, stronger visitation metrics, and more affordable build-outs. National brands like Chick-fil-A, Wingstop and Jersey Mike’s are expanding aggressively in these areas, prompting landlords to focus on high-performing suburban assets.
A particularly notable trend is the rise of “Medtail”—medical uses within retail centers. Urgent care clinics, physical therapy providers, vision centers and insurance offices are becoming more prevalent in grocery-anchored centers. Meyers explains that these tenants are willing to pay premium rents for locations close to residential neighborhoods, as their businesses rely heavily on convenience.
Finally, the integration of omnichannel strategies and buy-online-pickup-in-store (BOPIS) options is reinforcing the importance of physical retail. Rather than threatening brick-and-mortar stores, the digital shift is making them more relevant, especially in grocery-anchored centers where delivery logistics remain challenging and expensive. This blend of digital and physical channels is strengthening the long-term prospects of local shopping centers as last-mile logistics become ever more critical.
Source: “Retail’s Next Chapter: Five Trends Shaping the Industry”
