Q2 2025 Retail Market Report

RETAIL MARKET OVERVIEW

Activity was slow in Q2. Vacancy rose and activity slowed with the tariffs kicking in. A “wait and see” approach was what we observed. Cap rates rose as well. With the talk of tariffs slowing and becoming slightly more stable, we are seeing a spur of activity stepping into Q3. With the increasing talk of interest rates coming down, we expect a strong finish to the year.

MARKET INDICATORS Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
↓ 12 Mo. Net Absorption (SF) (528,138) (152,385) (829,551) (429,189) (688,394)
↑ Vacancy Rate (%) 3.8% 3.4% 3.4% 3.3% 3.4%
↑  Avg NNN Asking Rent PSF $30.09 $29.41 $29.35 $29.34 $29.81
↑  Sale Price PSF $394.51 $282.82 $164.37 $337.00 $328.92
↑  Cap Rate 6.60% 5.50% 6.70% 5.94% 6.00%
↓   Under Construction (SF) 266,118 460,713 402,096 - 436,619
↓  Inventory (SF) 175,075,101 181,802,871 182,335,556 182,396,180 182,765,131