Q1 2025 Retail Market Report
RETAIL MARKET OVERVIEW
With the election over, the Retail sector had vacancy rise slightly. As new tariffs take effect, it will be interesting to see how the retail sector deals with changes in taxes. Sale activity stayed strong with multiple grocery anchored shopping centers changing ownership. Net absorption stayed flat with companies strategizing for the changing market.
| MARKET INDICATORS | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|
| ↑ 12 Mo. Net Absorption (SF) | (152,385) | (829,551) | (429,189) | (688,394) | (668,493) |
| - Vacancy Rate (%) | 3.4% | 3.4% | 3.3% | 3.4% | 3.3% |
| ↑ Avg NNN Asking Rent PSF | $29.41 | $29.35 | $29.34 | $29.81 | $29.82 |
| ↑ Sale Price PSF | $282.82 | $164.37 | $337.00 | $328.92 | $442.38 |
| ↓ Cap Rate | 5.50% | 6.70% | 5.94% | 6.00% | 6.90% |
| ↑ Under Construction (SF) | 460,713 | 402,096 | - | 436,619 | 445,293 |
| ↓ Inventory (SF) | 181,802,871 | 182,335,556 | 182,396,180 | 182,765,131 | 182,322,078 |