At a glance
- The quarter was the second consecutive period of positive net absorption, according to JLL's quarterly U.S. retail report, first reported by Connect CRE.
- Over the past 12 months the market absorbed 24.4 million square feet, a swing from a 7.0 million net loss a year earlier, JLL said.
- For allocators underwriting retail, the spread between the 1.8% rise in market asking rents and 3.7% consumer price inflation is the key underwriting input.
U.S. retail properties absorbed 8.3 million square feet of net space in the third quarter, down from 10.2 million in the second quarter, JLL reported. The quarter was the second consecutive period of positive net absorption, according to JLL's quarterly U.S. retail report, first reported by Connect CRE.
Over the past 12 months the market absorbed 24.4 million square feet, a swing from a 7.0 million net loss a year earlier, JLL said. National vacancy edged down to 4.3%, with new deliveries partly offset by demolitions.
For allocators underwriting retail, the spread between the 1.8% rise in market asking rents and 3.7% consumer price inflation is the key underwriting input. That pushes due diligence onto lease-level spreads, where the report says owners are faring better than the index suggests.
Retailers announced 5,800 store openings so far in 2026, against 4,000 closures, a reversal from 2025.
JLL said publicly traded landlords are signing new leases well above expiring rents, with larger annual increases and smaller concession packages. That means headline rents understate how owners are doing.
"With consumer prices up 3.7%, rents are slipping in real terms, though today's space is roughly average by historical standards," JLL said.
With consumer prices up 3.7%, rents are slipping in real terms, though today's space is roughly average by historical standards.JLL, quarterly U.S. retail report
Reported by the Sectors desk from Connect CRE, citing JLL. Published . Corrections