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 |