Quick Takeaways

  • The retail real estate market is returning to pre-pandemic levels.
  • Flexible leasing is in high demand.
  • Investors and lenders have renewed interest in retail real estate.

“Retail space remains exceptionally tight, with available space for lease consistently below 5% over the past couple of years. Demand continues to grow, adding pressure to the market. Particularly as new supply remains limited. In the past 12 months, net deliveries totaled just over 30 million square feet – about 40% below the 10-year average. With fewer retail spaces under construction and strong consumer spending, the sector’s fundamentals are expected to remain tight.”  

Source: Commercial Real Estate Market Insights (National Association of REALTORS®, Jan. 2025)

Innovative leasing strategies are key. Tenants want greater flexibility as a hedge against future uncertainty. Commercial real estate professionals who understand and can creatively build upon leasing fundamentals will do well in this environment.

Investor interest in retail real estate has returned to pre-pandemic levels. Lenders are again ready to finance retail properties. Learn more about the benefits and risks of different retail investing methods.

See References for more information.

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