Despite expectations of a downturn, the U.S. retail sector remained resilient throughout 2025. Performance held steady amid rising store closures and bankruptcies. The second half of the year emerged as one of the strongest periods of the past decade.
Consumer spending remained active despite economic uncertainty and a slowing labor market. Vacated retail spaces were absorbed at a record pace. Retail development activity remained limited due to higher costs and cautious financing.
Retail rents moderated across many markets. Rent growth remained strongest in Southern regions. Shopping centers continued to command record pricing, supported by strong investor demand.
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