CoStar Analytics
Summary: After years of sluggish performance, retail property landlords are now benefiting from record-high rent spreads due to tight space availability and strong tenant demand. Following declines after the Great Recession and challenges during the pandemic, retail rents have surged, with new leases seeing increases of up to 35% over expiring ones. Sun Belt markets, such as Nashville and Tampa, have led the growth, with retail rents rising by 70% over the past decade. Though the pace of rent growth has slowed recently, the low availability of space and continued demand suggest that rents will remain elevated for the near future.