- Retail real estate professionals are bullish, with Asana Partners calling it the “most exciting” time to own retail due to tight supply and shifting consumer demand.
- Sprouts Farmers Market and Asana Partners are both aggressively expanding, targeting high-growth markets in Florida, the Midwest, and the Sunbelt.
- Even legacy players like Bloomingdale’s are rethinking store formats and pursuing physical retail growth over digital-first strategies.
Strong Fundamentals, Low Supply
At ICSC New York 2025, optimism was the theme, reports GlobeSt. A panel of retail leaders, hosted by JLL’s Naveen Jaggi, painted a bright picture for the sector. They pointed to favorable supply conditions, evolving store strategies, and strategic geographic expansions as key drivers of current momentum.
Clare E. Walsh of Asana Partners, with $7B in assets, called this the most exciting time in her career. The firm has multiple acquisitions underway, fueled by a market adapting to the long-term decline of outdated retail space.
Expanding In Strategic Markets
Sprouts Farmers Market is expanding rapidly in the Midwest and Northeast, which SVP Dan Croce calls “generational pockets” for growth. The grocer expanded from 3 to nearly 60 Florida stores since 2017 and aims to double that total in five years.
Asana Partners is focusing on Florida cities like Miami, Tampa, and Orlando, plus Sunbelt markets such as Dallas, Houston, and Southern California. In the Northeast, Asana is watching near-urban suburbs as millennial families shift toward more space and convenience.
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New Formats, New Energy
Even smaller operators like Bloomingdale’s are capitalizing on the momentum. James Cregan, who oversees real estate strategy at the department store chain, said Bloomingdale’s is actively looking to grow through investor and developer partnerships.
Cregan highlighted the company’s push toward smaller-format stores — typically between 20K and 50K SF — as a key part of its growth plan. “We see so much opportunity to get closer to customers who are currently underserved,” he said.
Why It Matters
After years of store closures and digital disruption, the retail sector is undergoing a revival. Retail owners now benefit from limited supply, steady consumer traffic, and growing investor interest — especially as rate cuts create a more favorable capital environment.
What’s Next
Expect more retail expansions, especially in suburban and Sunbelt markets. With developers like Asana and operators like Sprouts doubling down on physical retail, the sector is poised for continued momentum in 2026.
