Retail Real Estate Investment Rallies, Outpacing Other Property Types

According to a new report by JLL, retail real estate investment saw an unexpected upswing in the first half of 2025, with transaction volumes climbing 23 percent year-over-year. The West led the charge, doubling its activity with a 107 percent jump, hinting that investor confidence is returning to certain corners of the market. After years of being considered the laggard of commercial real estate, retail is showing a resilience that few predicted.

The bounce isn’t coming from a flood of speculative bets but from a scarcity of quality product and a steady demand for space in centers anchored by essential services or strong experiential draws. With new construction stymied by high costs and prolonged timelines, vacancy rates remain near record lows, supporting stable rent growth. This scarcity has created an environment where well-positioned assets command competitive bidding, and capital that might have been hesitant a year ago is now moving more decisively...

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RSK: Hardly any new construction going on has put the pressure on existing retail so rents remain strong, especially for good locations. Investors know this.