Retail's Winning Streak Continues as Consumers Keep Spending

Consumer resilience is keeping retail fundamentals strong, with sales growth, stable occupancy, and active dealmaking driving momentum.

Nina Dale
August 06, 2026

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Retail’s Winning Streak Continues as Consumers Keep Spending

Good morning. While other property sectors continue to navigate uncertainty, retail is quietly delivering. Strong consumer demand and disciplined supply have created one of the healthiest operating environments in commercial real estate.

CRE Trivia 🧠

What was the name of the first hotel opened by J. Willard Marriott in Arlington, Virginia, in 1957?

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Market Snapshot

S&P 500

GSPC

7,723.55

Pct Chg:
-0.17%

FTSE NAREIT

FNER

866.31

Pct Chg:
+0.043%

10Y Treasury

TNX

4.615%

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CME Term SOFR

1-Month

3.65%

Pct Chg:
-0.00

*Data as of 08/05/2026 market close.

Growth Story

Retail's Winning Streak Continues as Consumers Keep Spending

Resilient consumer demand, stronger retail sales, and limited new supply are giving retail real estate fresh momentum, with landlords and investors benefiting from healthy fundamentals.

By the numbers: Retail sales continue to outperform despite inflation concerns, tariffs, higher fuel costs, and cautious consumer sentiment. Total retail sales climbed 6.7% YoY in June, while inflation-adjusted sales rose 3.5%. Core retail sales, excluding autos and gasoline, increased 5.7%, underscoring consumers' willingness to keep spending.

Retail landlords see the payoff: Tanger Inc. raised its full-year outlook for the second time this year after stronger-than-expected results driven by domestic travel, early back-to-school shopping, and World Cup tourism. Average tenant sales rose 5% in Q2, while revenue reached $156.4M, topping analyst expectations. The outlet REIT is also expanding beyond outlet centers through acquisitions of traditional shopping centers.

Demand outpaces new supply: Retail fundamentals remain among CRE's strongest. Net absorption rebounded in Q2, keeping the national retail vacancy rate at 4.9% as limited new construction constrained supply. Average multi-tenant rents rose 2.2% YoY, led by markets including Phoenix, Nashville, Raleigh, Minneapolis-St. Paul, and Orange County.

Capital continues to chase retail: Investors continue to favor retail as one of CRE's most sought-after sectors. Transaction volume is nearing the record pace set in 2022, with single-tenant retail investment reaching an all-time high. Stable occupancy, durable cash flow, and limited new development continue to support the sector's appeal.

Retailers stay on the offensive: Strong consumer demand is driving retailers to add stores, supporting leasing activity. Tanger said retailer demand remains healthy as new development slows, a trend Marcus & Millichap says is helping sustain occupancy and rent growth.

➥ THE TAKEAWAY

The winning formula: Limited new construction remains retail's biggest advantage. Combined with resilient consumer demand, it's helping keep vacancies low and supporting rent growth across the sector.

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✍️ Editor’s Picks

Claim your free CRM: Raising capital is tough. Your CRM costs don’t have to be. (sponsored)
Tax boost: Bonus depreciation is fueling year-end CRE deal activity as investors enhance after-tax returns while keeping cash flow and fundamentals at the center of underwriting.
Foreign pullback: Foreign buyers are retreating from U.S. housing markets, but luxury homebuilders continue attracting international demand, especially from affluent buyers.
How healthy is your investor funnel? Benchmark your investor funnel and find what's slowing fundraising down (sponsored)
Office strain: CMBS maturities are exposing growing refinance pressure as office loans face weaker cash flows, lower debt yields, and rising default risks across the CRE market.
Verified intelligence: Duxre launched AI Brief, a cited version of a listing built from the broker's own deal file and approved before it goes out, so the AI reading the deal first works from confirmed numbers rather than filling in the gaps.

🏘️ MULTIFAMILY

REIT pulse: Apartment REITs are showing recovery signs as stronger renewals, high occupancy, and easing supply support growth, though pricing remains uneven across markets.
Apollo stake: Starwood REIT sold a 41.5% stake in its affordable housing portfolio to Apollo for $1.02B to strengthen liquidity and improve returns while maintaining operational control of the assets.
Multifamily divide: Community banks are taking different paths on multifamily lending as earnings reveal contrasting strategies, risk exposures, and underwriting approaches.
Charlotte debut: Tishman Speyer enters the Charlotte multifamily market with a $76.3M apartment acquisition, targeting upgrades in a high-demand rental market.

🏭 Industrial

Renewal rebound: Large-format industrial lease renewals are regaining pricing power after rebounding sharply from mid-2025 lows, while rent growth for smaller transactions continues to compress with no meaningful signs of stabilization.
Logistics split: Industrial tenants are reshaping demand as large users upgrade to efficient facilities while smaller businesses remain anchored in infill locations.
Data pause: Loudoun County considers a data center development pause as officials weigh legal limits, community concerns, and economic impacts from the region’s rapid digital infrastructure expansion.
Industrial expansion: BKM Capital Partners acquired $2.1B in light industrial assets, expanding its portfolio while targeting infill markets and future growth opportunities.

🏬 RETAIL

Grocery surge: Asian and Hispanic grocers are rapidly expanding across the Bay Area, attracting institutional investors through strong demographics, adaptive reuse, and resilient retail demand.
CVS access: CVS Health is expanding GLP-1 medication availability through its app, pharmacy network, and virtual care services with Eli Lilly’s partnership.
Vegas revival: Agora Realty completes a $375M mixed-use project in North Las Vegas, delivering a grocery-anchored retail center that is 95% leased and launching the next phase of a major redevelopment.

🏢 OFFICE

Riverfront revival: Dan Gilbert’s Bedrock plans a $1B Detroit waterfront redevelopment with housing, parks, and entertainment to attract residents and reshape the city’s skyline.
Safety sweep: NYC inspections of 180 buildings linked to a troubled office-to-residential conversion found no major structural issues, easing concerns over adaptive reuse projects.
Conversion confidence: U.S. cities remain confident in office-to-residential projects despite New York’s structural scare, with officials saying existing safety reviews can manage the growing adaptive reuse trend.

🏨 HOSPITALITY

Campus clubs: Derek Jeter-backed Alum is developing luxury condo-hotels and private clubs in college towns, starting with Alabama, to create new hospitality destinations.
Rate surge: Los Angeles hotels saw higher room rates during the World Cup, but occupancy gains remained modest as fan demand was offset by fewer business and leisure travelers.
Distress deals: California hotel transactions accelerated in 2026 as distressed sales fueled activity, driven by higher debt costs, lower valuations, and maturing loans.

📈 CHART OF THE DAY

Source: Federal Reserve Bank Of San Francisco

The U.S. Monetary Policy Event-Study Database measures high-frequency changes in interest rates and asset prices around Federal Open Market Committee (FOMC) announcements, providing a detailed view of how financial markets respond to monetary policy decisions and communications.

Twin Bridges Motor Hotel. Marriott had operated Hot Shoppes restaurants since 1927 before expanding into lodging with the 365-room motor hotel near Washington's Key Bridge, marking the beginning of what would become a global hospitality company.