United States Retail Market Dynamics Q4 2025

The U.S. retail real estate market closed 2025 on firmer footing, with demand rebounding and supply growing even tighter. Positive net absorption returned in the second half of the year, vacancies remain near historic lows, and new construction continues to fall—reinforcing landlords’ pricing power in well-located centers. While leasing volume cooled and tenants grew more selective, expanding retailers moved quickly on quality space, particularly in grocery-anchored, neighborhood, and service-oriented formats. At the same time, institutional capital surged back into retail, pushing annual investment volumes above long-term averages. The result is a market defined by resilience, scarcity, and increasingly strategic competition for space.