Despite several high-profile retail bankruptcies pushing the U.S. retail real estate market into negative absorption for the second consecutive quarter, the continued lack of new development and demand for quality retail space kept availability relatively stable in second quarter 2025, according to Newmark. While tariff uncertainty lingers, resilient consumer spending has driven the productivity of overall retail space. Capital markets activity continues to improve, driven by a notable increase in big-ticket retail centers trading in 2025.
The availability rate rose 10 basis points to 5.3 percent but remains well below the long-term average of 6.6 percent. Asking rents recorded their first year-over-year decline as subprime space enters the market.
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