Neighborhood Retail Gains Momentum Ahead of ICSC Las Vegas
As the retail real estate industry readies for ICSC Las Vegas 2026, optimism is building around neighborhood retail centers — particularly in categories tied to food, beverage and personal services. Leasing activity is accelerating and landlords are finding that tenants are more confident in paying higher rents and taking less in tenant allowances than in recent years.
"In neighborhood retail centers, we're seeing strong demand in food and beverage and personal services, especially fitness," Richard Aaronson, CEO of Atlanta-based Atlantic Residential, tells GlobeSt.com.
"There's also been more of a shift toward franchised concepts. Tenants seem more willing to accept higher rents and less tenant allowance, which suggests things are performing better right now."
Aaronson's firm is developing The Crossing at Coal Mountain, a mixed-use project in North Forsyth County, Georgia. He said the current leasing strength is largely driven by shifting consumer habits in affluent suburban markets.
"Most of that is being driven by consumer behavior," he said. "In areas where there's more disposable income, people are still dining out or ordering in, and on the service side we're seeing more interest in specialty fitness versus traditional gyms. We'll see if that holds."
His perspective aligns with a broader trend across retail heading into ICSC: necessity-based centers remain resilient, but experiential, lifestyle-driven concepts are increasingly defining tenant mixes. The growing appeal of boutique fitness brands and franchised food and beverage operators reflects retailers' efforts to align with evolving consumer expectations.
With more deals closing on firmer terms and tenants showing confidence in their performance, Aaronson's outlook is cautious optimism for neighborhood retail — an asset class that continues to evolve with the communities it serves.
Source: GlobeSt/ALM