Connect CRE
Jan 16, 2026
The pandemic’s aftermath saw yet another prediction of retail’s demise. But fast-forwarding half a decade, and retail has been a robust commercial real estate asset class.
The pandemic’s aftermath saw yet another prediction of retail’s demise. But fast-forwarding half a decade, and retail has been a robust commercial real estate asset class. Despite the current K-shaped economy, shopping cutbacks from lower-income households and uncertain consumer sentiment, experts told Connect CRE that the sector is entering 2026 in decent shape.
While other CRE categories have been volatile or slowing, “retail has remained solid,” said Darren Pitts, co-founder and executive vice president of Velocity Retail Group. “The overall view for the sector in 2026 is that it will be steady.”
The 2025 Analysis: Steady
“Steady” was one word to describe retail over the past year. The other was “resilient.”
“Overall, retail performance was surprisingly strong, despite economic uncertainty and international conflict throughout the year,” said Axiom Broker Stephanie Skrbin. “Leasing activity remained strong, especially for A and B centers, while investment activity and pricing increased from last year.”
Additionally, physical locations have become even more relevant in the wake of disruptions from store closures, e-commerce, and the pandemic. According to Avison Young’s Principal and Director of Market Intelligence, Meghann Martindale, this led to strong leasing and investment fundamentals. Additionally, “new experiential, omnichannel and mixed-use formats invigorated the sector,” said Martindale, Avison Young’s Principal, Director Market Intelligence, Retail.
J. Wickham Zimmerman agreed that experiential retail motivated consumers to spend more time on-site. Additionally, “consumers prioritized convenience and price sensitivity,” added Zimmerman, who is CEO with Outside the Lines, Inc.