The U.S. retail market turned a corner in Q3 2025, posting positive net absorption of 4.7 million square feet after two consecutive quarters of decline in the first half of the year. This turnaround signals market stabilization as the industry works through store closures while benefiting from severely constrained new supply. With construction at historic lows and demolitions removing obsolete space, expanding retailers face a supply shortage, that has been partially alleviated by vacated retail space. The slew of new openings is driven by quick-service restaurants and dollar concepts seeking smaller footprints.