U.S. retail fundamentals ended fourth quarter 2025 on firmer footing, with availability holding at 5.3 percent — well below the long-term average— and another quarter of positive net absorption totaling 7.4 million square feet. Those numbers signal that the wave of mass closures earlier in 2025 have largely been absorbed, according to Newmark in its fourth quarter retail report. Despite low consumer sentiment and inflation concerns, retail spending remained resilient, supported by a strong holiday season and wage growth that continues to outpace the Consumer Price Index (CPI), sustaining household purchasing power. Leasing activity is muted and retailers are taking smaller spaces on average, but demand for prime locations remains heated, with long-available space still a drag on overall market fluidity. Capital markets momentum accelerated in 2025, with retail investment volume reaching $66.8 billion and large transactions over $100 million setting a record for the decade, drive
