Single-tenant net-lease retail has held strong in the second half od 2025, according to Marcus & Millichap’s Single-tenant net-lease retail national report.
The sector has seen a multi-year stretch of positive net absorption, but store closures, tariff constraints and a declining labor market have negatively impacted leasing, causing it to taper off in the first half of the year and vacant stock to increase by 21 million square feet in the second half of 2025.
Core retail sales are up by 4.9 percent, year-over-year, with health and personal care, restaurants and bars and apparel experiencing a positive outlook for single-tenant demand. Food-centric sectors are seeing the strongest performance, with a nationwide absorption of 11.5 million square feet in fast food, restaurant, convenience store and supermarket space.
While the outlook is strong, the full effects of tariffs have yet to materialize, says the report. The next four months will more hea
