Retail – 2025 Q3 Market Review

Q3’ 25 Recap: Pockets of Opportunity Persist AmongVacancy Pressures

The third quarter saw notable transactions in both the leasing and sales side of the retail market, with several big box spaces across the city backfilled and a handful of multi-tenant retail investments transacting. Also of note, many tenants are continuing to find it difficult to lock in quality spaces, especially in trade areas North of Menaul and on the Westside. The spread between asking rates in premium locations and those in less desirable corridors continues to grow as tenants optimize for higher quality real estate and
demographics.

In the typical fashion seen over the twelve months, retail NNN rates pressed on in Q2 with a positive trend, reflecting an average asking rate of $19.01 in September ‘25, up from $18.54 at the end of June ‘25. As mentioned in previous editions of this report, the West side, North of I-40 and the Far Northeast heights commanded the highest rates for second generation space, which generally range from $20 - $30/per foot + NNN. On average, rates for new retail construction, although highly dependent on delivery conditions and size, start in the mid to high thirties per square foot.

Download Full Report: Q3 2025 Retail Market Report

The Land and Industrial Q3 market research and data is compiled by NAI SunVista commercial retail specialist, Ethan Melvin. Ethan advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.