JLL Leaders Outline Shifting Retail Landscape at ICSC LAS VEGAS Article originally posted on ICSC on May 22, 2026 During ICSC LAS VEGAS, JLL executives outlined a retail sector defined by tight supply, resilient demand and a shifting tenant mix. From a surge in experiential concepts to constrained deal flow despite strong investor appetite, the discussion underscored how macroeconomic pressures are reshaping both leasing and capital markets without slowing overall momentum. Experiential Pipeline Expands as Consumers Trade Down From Big-Ticket Leisure JLL’s new 2026 Entertainment Report points to an expanding pipeline of experiential retail, or what it calls “location-based entertainment,” with roughly 16.5 million square feet of experiential concepts planned in the U.S. and Canada. JLL senior director of Americas retail research James Cook tied that growth to a bifurcated consumer environment: “High-net-worth individuals are doing very well. … Meanwhile you’ve got a lot of folks who are on a budget looking for value.” As higher costs make destination entertainment less attainable for some households, smaller-format, closer-to-home concepts — from trampoline parks to “competitive socializing” venues to branded attractions like Netflix House — are expanding to meet demand. Entertainment and Healthcare Absorb Available Retail Space The growth of experiential concepts is contributing to a shift in the reuse of vacant retail space, particularly former big-box locations. “Entertainment and health [are] the two biggest users of traditional retail space that have taken space in the last 10 years,” said JLL president of retail advisory services Naveen Jaggi. Much of that activity is occurring in second-generation space, including former anchors and large-format vacancies. The result is a smaller pool of available space for traditional retailers reentering the market — not due to direct displacement but because that space is increasingly being repurposed for nontraditional uses. Capital Targets Retail as Fundamentals Strengthen, Though Deal Volume Remains Measured Retail leasing fundamentals remain strong across property types, even amid broader economic uncertainty. “Leasing is the best it’s been in about 10 years,” Jaggi said, pointing to low vacancy rates and continued demand from expanding tenants. And limited new construction is reinforcing those conditions. JLL Lifestyle Property Management president Paul Chase noted that demand has remained steady even as development activity has lagged. That dynamic is contributing to steady rent growth and a more competitive leasing environment. Retail continues to attract growing interest from institutional investors, supported by relative outperformance among property sectors. “Retail has led [the NCREIF Property Index] for 10 straight quarters,” said JLL Capital markets senior managing director and retail co-lead Chris Gerard, noting that investors are looking to increase retail allocations. Still, transaction activity has not fully kept pace with that demand. “The demand is extremely high … but there’s just not enough space for people to buy,” Gerard said. Strip centers, in particular, are drawing sustained interest as an increasingly institutionalized asset class, alongside renewed liquidity in lifestyle centers. Retail Spending Holds Up Despite Softer Sentiment JLL leaders pointed to a continued disconnect between softer consumer sentiment and ongoing retail spending. Jaggi noted the disconnect is driven in part by perception versus reality: Consumers may feel the economy is weak based on broader narratives but continue to spend as strong investment portfolios support their finances — even as higher everyday costs reinforce concerns about inflation. That dynamic is helping sustain both higher-end and value-oriented segments while contributing to more uneven performance in categories like apparel.