Short-term: Global retail sales growth is set to remain steady or increase moderately across major markets through 2025. Key retail categories including fashion, luxury, F&B and entertainment are continuing to expand to capture diversification benefits as they target destinations with strong fundamentals, while primarily online retailers are also expanding their physical store networks. Leasing markets are set to remain active, although limited available space in mature markets will hold back absorption levels in prime locations and selectively broaden activity beyond the top locations and gateway cities. The mismatch between supply and demand will continue, intensifying competitive tension between major brands to secure quality space.

Long-term: More retailers are using experiential retail and technology to engage consumers and drive foot traffic and sales in physical stores. This includes interactive displays, in-store events, personalized services, unique spaces, technology-enhanced interactions and design that reflect the brand's identity. This strategy aligns with the growing desire for experience-related purchases and helps retailers and landlords differentiate themselves in an omni-channel environment by creating memorable experiences, building stronger relationships and encouraging repeat visits.