Institutional capital is moving back into retail real estate, lenders are stepping up activity, and demand for top-tier sites continues to tighten signaling a meaningful shift in momentum as we head into 2026.
Recent reporting shows capital returning to essential-service and grocery-anchored centers, while cap rates have compressed toward interest-rate parity, creating one of the most unusual spreads the sector has seen in years. Holiday retail sales also surpassed one trillion dollars for the first time, underscoring strong consumer performance across categories.
Key themes this month:
Market activity: Institutional investors are reentering retail, cap rates are holding firm despite rate pressure, and lenders are reengaging across stable asset classes.
Consumer strength: Holiday sales crossed the one-trillion-dollar mark, reflecting healthy demand and broad retailer performance.
Sector dynamics: QSR operators are competing aggressively for high-quality sites, pushing rents upward and keeping vacancy near historic lows.
Capital markets: Borrowing costs began to ease as lenders increase activity, improving feasibility and liquidity across transactions.
Dive into the full December Newsletter #028 for deeper market insights, retail trends, and project updates across developments, exits, and cash-flowing centers by clicking below.
