Q1 2025 US Retail Market Beat Report

• Softening market. Demand in the first quarter turned negative, with net absorption dropping 5.9 million square feet (msf), marking the weakest quarter since the onset of the pandemic. First quarters of any year are typically the slowest, but the trend over the past several quarters clearly signals an organic softening in the market.

• Tariff talk. Retailers are bracing for a more challenging operating environment due to far-reaching tariffs which will likely raise costs and dampen consumer demand. Prevailing economic uncertainty, if continued, is expected to result in cautious leasing behavior over the next several quarters, resulting in higher vacancy and easing rent growth.

• The big picture. Barring a recession, retail CRE is poised to weather this period of uncertainty with a relatively modest change to the fundamentals. The vacancy rate remains historically low, with minimal new construction and most tenants having already right-sized their real estate needs...

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RSK: Looks like Greater Milwaukee had and decent lease up of retail compared to others if I am reading these graphs correctly.