Retail real estate market in the United States - statistics & facts

The U.S. retail real estate sector has faced significant challenges in recent times. Changing consumer behavior, particularly the rapid growth of e-commerce sales, has raised important questions about the future of brick-and-mortar stores. As businesses expand their online presence, store closures have impacted the demand for retail real estate. However, these concerns vary in relevance across different types of retail properties. Nationwide, there were almost 12 billion square feet of retail real estate, more than half of which general retail – single-tenant, freestanding, general-purpose buildings with a parking. The vacancy rate of general retail was three times lower than that of regional or superregional malls and lifestyle centers - a sing of strong demand for these types of locations.

Investment performance of retail real estate

Various investor types, including private companies, institutional investors, and real estate investment trusts (REITs), can own retail real estate. REITs are companies that own and lease income-generating properties. Despite experiencing negative annual returns, the retail REITs sector, particularly freestanding retail, performed considerably better in 2022 compared to industrial real estate or office spaces. Realty Income Corporation and Simon Property Group are the two largest retail REITs, with market capitalizations close to 40 billion U.S. dollars each. Among the 20 largest firms, the five-year return ranged from 14 percent to negative 22 percent.

The impact of economic instability on retail real estate

Without a doubt, the worsening economic climate in 2022 has affected the sector. Fluctuations in retail spending affect cash flow for occupiers and may lead to the need to cut costs or close stores. Mortgage refinancing in the commercial real estate sector has become increasingly difficult due to the tightening monetary policy and higher cost of borrowing. As of March 2023, the delinquency rate for retail mortgages stood at about 6.2 percent, surpassing that of any other property type. When asked for recommendations about holding, buying or selling different types of retail properties, the majority of industry experts suggested buying neighborhood/community shopping centers, while more than two in three recommended selling regional malls.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, May 22, 2023

Key insights

Market share of the retail real estate sector
12.5%
E-commerce share of total retail sales
15.4%
Value of retail sales
631.06bn USD
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Editor’s Picks Current statistics on this topic

Average capitalization rate of retail real estate in the United States in 1st quarter 2022, by type

Retail

Cap rate of retail property in the U.S. Q1 2022, by segment

Average monthly asking rent of shopping center real estate in United States from 2020 to 2023, by region (in U.S. dollars per square foot)

Retail

Average rent shopping center property in the U.S. 2020-2023, by region

Average sales price of retail real estate in the United States in 4th quarter 2020, by property type (in U.S. dollars per square foot)

Retail

Sales price retail properties per square foot in the U.S. Q4 2020, by property type

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