CoStar: Retail rent growth slows to 1.9% in Q1
Tuesday, April 28, 2026
| CoStar: Retail rent growth slows to 1.9% in Q1 |
| Published Tuesday, April 28, 2026 11:00 am |
This is a summary
"After booming post-pandemic, retail rent growth is continuing to moderate.
According to a new report from CoStar Group, U.S. retail asking rent growth slowed to 1.9% year over year in the first quarter of 2026, extending a downward trend that began in 2024.
The asking rent growth deceleration is seen across most major markets, though performance continues to vary by region, according to CoStar. Several Sunbelt markets that led rent growth earlier in the cycle, including Phoenix, Orlando, Atlanta, and Charlotte, still posted solid year-over-year gains at the end of the first quarter, but growth rates have slowed as asking rents plateau."
Read the original on Chain Store Age
CoStar: Retail rent growth slows to 1.9% in Q1| Chain Store Age
Image credit to Erik Mclean on Unsplash
U.S. retail asking rent growth has significantly moderated, slowing to +1.9% year-over-year in Q1 2026. This marks the slowest pace of growth in over a decade and continues a downward trend that began in 2024. While the retail sector remains fundamentally healthy with low vacancy rates, the market is shifting from post-pandemic highs toward a "new normal.
Walmart has unveiled an aggressive expansion and modernization plan for its 2026 fiscal year, focusing on enhancing its physical footprint to meet evolving consumer habits. The retail giant plans to remodel more than 650 stores (including Supercenters and Neighborhood Markets) and open approximately 20 new locations across North America through early 2027.
The commercial real estate industry is facing a significant "trust gap" when it comes to delegating high-stakes financial decisions to AI. While AI can process data at lightning speeds, industry leaders remain hesitant to let algorithms lead the underwriting process for multi-million dollar deals.