10/10/2025
Retail remains strong in the face of closures and limited construction
Despite closures from bankruptcies in 2024 and limited construction of new spaces, the retail market has remained resilient in the second quarter of 2025, according to an August 2025 article from CRE Daily.
Big-box closures clear the way for small-format leaders
With the closure of many big-box retail stores like Joann, Big Lots and Forever 21, as well as drugstore chains like Rite Aid and Walgreens, a significant amount of retail space has returned to the market. However, smaller retail formats are winning the sector.
CRE Daily found that nearly 90% of new leases in Q2 of this year were for spaces under 5,000 square feet. For example, service-based tenants and quick-service restaurants are leading the retail market.
Transactions are on the rise
The article reports that the volume of retail asset transactions is up 23% from a year ago, reaching $28.5 billion in the first half of 2025, with the West region leading the way. Major deals, like FalconEye Ventures’ $645 million acquisition of Scottsdale Quarter — a retail-driven mixed-use development — have driven market growth.
