A Las Vegas conference is showcasing commercial real estate trends, including how unique services can shape the industry looking toward a rebound. And its sponsoring organization's chief executive said the gathering comes as he's planning for the group to keep growing.
The CRE.Converge event, hosted by the Commercial Real Estate Development Association, also known as NAIOP, runs through Thursday at Caesars Palace on Sin City’s famous Strip.
“This conference is really focusing on the experience economy,” said NAIOP CEO Marc Selvitelli, referring to an industry term that describes providing memorable hands-on experiences to consumers.
Sessions are expected to range from traditional conversations on capital markets and the evolution of retail to more focused discussions on how sports and entertainment affect the financing and redevelopment of projects, all meant to inform participants on how to build or adjust their strategic plans to navigate the marketplace.
Attendees can tour local properties such as the Las Vegas Ballpark, home of the minor league Aviators, and the immersive entertainment venue Area15.
With more than 1,500 guests expected throughout the week, the conference “could see record attendance,” Selvitelli said, close to what the trade group had two years earlier at its annual gathering in Chicago.
Industry veteran
With roughly 30 years in the trade association realm under his belt, including 15 years with NAIOP, Selvitelli is optimistic about the future of his group and the commercial property industry.
After joining NAIOP in 2006 as vice president for membership and chapter relations, he took on the role of chief operating officer in 2017 following a brief stint at business management firm Smithbucklin, he said. He then transitioned into his current role as CEO in July 2022.
Tracing its start to 1967, NAIOP, an association with more than 21,000 members, provides advocacy, education and research for developers, owners and investors of office, industrial, retail and mixed-use real estate.
The group grew even during the pandemic, Selvitelli said, with the newest branches opening in Austin, Texas; Boise, Idaho; and just weeks ago in the Gulf Coast.
“We expect to open at a minimum two more next year,” he said, though he would not yet name what markets they may serve.
Selvitelli described how commercial property owners and investors are still waiting to evaluate the full impact of the Federal Reserve's rate cut last month, though he said there is cautious optimism about the loosening of lending restrictions.
His association describes how all in all the rate decline will be good for commercial real estate as bank profitability will likely rise, freeing up cash and enabling banks to make more loans. The availability of more abundant and cheaper finance to the sector should also allow for more aggressive bidding for deals, pushing up prices and transaction volumes.
Varying property types
Discussions during the week are slated to cover a range of property types, including industrial, multifamily, office and retail real estate.
A lineup of keynote speakers includes political journalist Chuck Todd, tennis star Andre Agassi — who helped create a real estate fund that develops urban charter schools — and real estate “futurist” Nikki Greenberg.
Activities are examining how the experience economy can serve as a driver for success, including opportunities for a behind-the-scenes tour of the conference’s iconic venue, the hotel and casino Caesars Palace, and for a visit to a local mixed-use development called UnCommons that has become a so-called destination workplace centering on food and amenities in an urban environment.
Overall, a majority of people across age groups and regions consider “experience” important in their choices, according to a global consumer experience report conducted this year by real estate firm JLL that surveyed more than 3,200 respondents across four generations in 26 cities around the world.
For example, despite a plethora of online retail, entertainment and leisure alternatives available, 67% of respondents said they prefer the physical ability to shop in person rather than on the internet.
“In a world full of options, places and spaces must generate stand-out consumer experiences to become destinations of choice,” the report said.
Conference guests, including the 62% of expected attendees that NAIOP said are developers, owners or investors, will be able to explore exhibit space and participate in extensive networking opportunities.
In addition to the main event, NAIOP is running another conference this week in Las Vegas focused on the development of cold storage facilities, or specialized properties equipped with temperature-controlled environments. The I.CON Cold Storage 2024 event explores the emerging sector via panels on leasing, design and construction.
“It isn’t just turning up four walls like you would in a traditional industrial development. There’s so much more to it,” Selvitelli said, noting that around 650 individuals are registered for that program.