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Retail sector sees first negative net absorption in 16 quarters
Research - MAY 16, 2025

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Retail sector sees first negative net absorption in 16 quarters

by Andrea Zander

For the first time in 16 quarters, more retail space is being vacated than is being occupied/leased, with net absorption sinking to minus-2.7 million square feet, according to JLL’s first quarter retail outlook. Announced retail closures between 2024 and early 2025 totaled more than 9,900 locations (driven by the likes of Party City and Big Lots), putting millions of high-demand square feet back into the market in second quarter and beyond.

First quarter 2025 retail investment volume grows year-over-year, with transaction volumes reaching $9.8 billion, 13 percent plus and 12 percent plus compared to first quarter 2024 and first quarter 2023, respectively.

Amid concerns about the economic impact of tariffs, investor strategies are likely to prioritize grocery-anchored and unanchored strip centers, reflecting a preference for stable, necessity-driven retail assets.

And uneasiness of consumers in an economically uncertain environment has r

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