Retail execs in LV for big show

Jennifer Robison

Monday, May 20, 2002 | 11:55 a.m.

A key national retail convention is bringing close to 30,000 real estate professionals to Las Vegas this week.

Brokers, developers and retailers are here to participate in the spring gathering of the International Council of Shopping Centers, a Las Vegas tradition for more than 20 years.

The five-day convention, which launched Saturday and continues through Wednesday at the Las Vegas Hilton and the Las Vegas Convention Center, includes a leasing mall showcasing 850 companies and a separate trade show with more than 300 product and service vendors.

One project sure to draw interest is Mandalay Resort Group's resurrection of a 100,000-square-foot retail mall linking the company's Mandalay Bay and Luxor hotel-casinos. The mall was first announced in 1999 and at one point was planned at 1.2 million square feet with Nordstrom as an anchor, but it has been delayed and downsized as Nordstrom instead chose to debut in Las Vegas at the Fashion Show mall on the Strip.

Construction of the project, which is expected to be completed by 2003, will begin in the fall, John Marz, senior vice president of Mandalay Resort Group, announced today. Upscale retailers Louis Vuitton and Fendi have signed letters of intent to lease space in the center, which will have room for 33 shops and restaurants.

"We think the south end of the Strip from the Monte Carlo to Mandalay Bay is under-retailed," said Marz, who wouldn't disclose the estimated cost of the project. "Each property has retail, but as a gathering place, we think this will solve some of the retail problems on this end of the Strip.

"Retail is obviously a big draw on the Strip and we want to capitalize on that."

Local brokers and developers say the convention's presence in Las Vegas each year allows them to show national retailers the valley's exploding population growth and its affluent master-planned communities.

"We have an opportunity to do a tour, to help tenants get an understanding of the market and a feel for the various neighborhoods," said Kit Graski, senior vice president of commercial real estate firm CB Richard Ellis. "Tours also offer a chance to check out other businesses, as well as the competition."

Graski cited Bed, Bath & Beyond as one retailer that launched Las Vegas locations following negotiations that began at ICSC's spring convention.

Dave Johnson, senior vice president of retail for brokerage NAI Horizon, said CVS Pharmacy and Lowe's Home Improvement stores also got their local starts in the valley during previous ICSC conventions.

"What typically happens is that you either start a deal or finish a deal at ICSC," Johnson said. "You also start relationships that lead to a culmination as you go along from year to year."

The convention transcends deal-making -- it also offers attendees numerous keynote addresses and seminars.

This year's convention theme revolves around the collaboration of public and private entities in the development of retail projects.

The tentative national economy and the desire for greater understanding between private developers and public officials inspired the current convention's focus.

"Developers need to know how to deal with municipalities, and municipalities need to know how to deal with developers," said Patrice Duker, media relations manager for ICSC. "They do things differently. We want to say, 'Here's how each of you work in your separate worlds, and here's how you can work together.'

"It is a little tougher out there. Given economic conditions, we just want to make sure people know how to work together. If people create partnerships, development is easier."

Gov. John Engler of Michigan and Wal-Mart Chief Executive H. Lee Scott Jr. are among the speakers at this year's convention. Also scheduled to speak are U.S. astronaut Jerry Linenger and basketball great Earvin "Magic" Johnson, who is chief executive of a retail development company that focuses on retail development in the urban core.

Topics of individual convention seminars include retail trends and their impact on the future, the issues and challenges facing small shopping centers, a property insurance update, airport retailing, how to make retailers more profitable and mall security.

The Sun's Kirk Kern contributed to this story.