Retail real estate is making a comeback—but not in the way it used to. After decades of underbuilding despite booming population growth, rising demand and low vacancy rates are driving a renewed wave of development. Big-name retailers like Walmart, Target, TJX, and Chipotle are fueling this momentum, seeking new spaces and creative site solutions, especially those with existing drive-thrus and high-traffic visibility.

Construction costs are high, but strong sales are justifying premium rents, and investors are finally taking notice. Once overlooked, retail is now seen as a durable asset in a shifting real estate market. As consumer habits and communities evolve, so too does retail—proving once again that well-located, thoughtfully developed retail never goes out of style.

Retail real estate is entering a new chapter in 2025, as store closures open the door for opportunity. Despite sluggish new construction, available retail space surged by 12.5 million sq. ft. in Q1—marking the highest availability in two years—thanks to a wave of high-profile closures from Big Lots, Joann, Macy’s, and more. Larger spaces are leading the vacancy spike, especially in Class B and C properties.

But where some retailers exit, others are ready to move in. Grocers like Aldi, off-price apparel chains, restaurants, and fitness brands are snapping up space, particularly in growth markets like the Sun Belt. Still, rent growth is slowing in over-saturated areas, and lower-tier spaces are struggling to attract tenants.

While retail is facing a reckoning, the shake-up is also creating new chances for landlords and expanding brands to reinvent underused properties—and perhaps, redefine the future of retail.

Florida lawmakers have passed bills that give condo associations an extra year—until December 31, 2025—to complete structural reserve studies and offer more financial flexibility by allowing loans and lines of credit for funding. The move comes in response to mounting pressure from owners facing skyrocketing repair costs and special assessments following the 2021 Surfside collapse. While the bills don’t change core safety requirements, they do offer temporary relief by letting associations pause reserve contributions and prioritize critical repairs. Critics argue the legislation falls short of offering true financial relief or addressing the complex and often stalled process of terminating aging condo buildings for redevelopment. With 70% of South Florida condos over 30 years old and values expected to plummet, many owners are left with limited and costly options—if any at all.

The U.S. multifamily housing market is showing strong signs of a rebound, according to a new CBRE report. In Q1 2025, net absorption surged 77% to a 25-year high, driving down vacancy rates to 4.8%—the steepest first-quarter drop on record. Rent growth resumed, and investor confidence followed, pushing multifamily investment volume up 33% year-over-year to $28.8 billion, the highest since early 2022. With demand outpacing new supply in nearly every major market, and construction slowing, rents are expected to keep rising. Despite broader economic uncertainty, CBRE says the multifamily sector remains a resilient standout in commercial real estate.

Skechers is stepping off Wall Street and into private ownership. The global footwear giant has agreed to be acquired by investment firm 3G Capital in a $9.4 billion deal, offering shareholders $63 per share—a nearly 30% premium. The third-largest footwear brand in the world, Skechers will continue its growth strategy under its current leadership, remaining headquartered in Manhattan Beach, California. The move marks a bold new chapter for the 30-year-old company as it focuses on international expansion and direct-to-consumer growth with the backing of a powerhouse investor.

Rite Aid Corp. is entering Chapter 11 bankruptcy once again as it seeks a buyer for most of its assets. Despite emerging from a previous bankruptcy in 2024 with reduced debt and fewer stores, the pharmacy chain continues to face financial headwinds and has now launched a court-supervised sale process. While national and regional buyers are expressing interest, Rite Aid emphasizes that pharmacy services—including prescriptions and immunizations—will remain available throughout the transition. Backed by nearly $2 billion in new financing, the company aims to ensure continued operations, preserve jobs, and smoothly transfer prescriptions if necessary.

Retailers are bracing for a potential “Christmas tax” as new tariffs threaten to drive up prices during the holiday season, just as consumers are growing more price-sensitive. With trade policy in flux, especially under the Trump administration, many retailers are struggling to balance rising import costs with customer expectations—and few are willing to be the first to hike prices and risk backlash. Walmart’s commitment to absorbing some costs to keep prices low is setting the tone across the sector.

As margins tighten, companies are increasingly turning to tech, data, and private label strategies to stay competitive without alienating shoppers. Transparency is also becoming key, with some retailers considering signs or receipts that highlight tariff-related costs to maintain trust. While spring and summer prices may hold steady, experts warn the real impact will hit during back-to-school and holiday shopping, as everything from toys to clothing could see sticker shock.

Sprouts Farmers Market and Natural Grocers are outperforming the grocery sector in early 2025, with store visits jumping 11.9% and 5.9% respectively—far ahead of the overall category’s modest 0.8% growth, according to Placer.ai. These health-focused chains are benefiting from strong appeal among affluent, wellness-conscious shoppers, especially young professionals and wealthy suburban families. While Sprouts is expanding rapidly with nearly 450 stores and a suburban customer base, Natural Grocers, with around 170 locations, is thriving in smaller metro areas. Their distinct geographic strengths suggest both brands are carving out complementary roles in the competitive grocery landscape.