Why everyday retail Is leading the market
When people think about retail real estate, they often picture big malls or luxury shopping districts. But some of the strongest performers in retail are the places we all visit every week without thinking twice, like grocery stores, hair salons, pharmacies, fast casual restaurants, and neighborhood goods and services.
In other words, necessity retail.
Across the U.S., we’re seeing that centers focused on everyday needs are holding up extremely well. Even with economic ups and downs, people still need food, healthcare, and basic services. That steady demand is helping keep many retail centers full and rents stable. Today, many open-air and grocery-anchored centers are nearly full, with vacancy rates in the low single digits nationwide. With limited new construction adding supply, existing centers remain in high demand, helping sustain positive rent growth.
Another factor shaping retail is how people are working today. With more hybrid schedules, many consumers are spending more time closer to home. That often means shopping locally on an even more frequent basis than in prior decades. Neighborhood retail benefits directly from this shift.
Florida, and Miami in particular, is a great example. Miami’s retail market has been stabilizing after years of rapid growth. Strong tourism, population gains, and active consumer spending are keeping brick-and-mortar retail relevant. Miami has about 109.7 million square feet of retail space in total, and only about 3.2% of it is vacant, which is very low for a major metro area, signaling strong demand from retailers. Over the past year, retailers have filled about 178,500 square feet of space, meaning more stores are opening or expanding than closing. At the same time, only about 545,400 square feet of new retail space is under construction.
That measured level of new development helps prevent the market from becoming oversupplied, which supports healthy occupancy levels and rent growth for existing centers. Areas like Brickell, Wynwood, and Coral Gables continue to attract retailers, while places like Coconut Grove and South Miami are seeing renewed or emerging interest.
The elimination of the sales tax on commercial leases is also helping retailers in Florida. Lower occupancy costs make it easier for businesses to open and expand, which can encourage more leasing and investment. This policy went into effect on October 1, 2025, and directly reduces tenant costs statewide.