The Retail Rebound: What’s Really Happening in the Retail Market Today

Not long ago, the headlines declared a “retail apocalypse”—and for good reason. From 2020 through 2022, the commercial retail sector was rocked by store closures, pandemic-induced slowdowns, and the seemingly unstoppable rise of e-commerce. But fast forward to 2025, and retail is no longer in decline—it's reinventing itself.

From revitalized urban storefronts to omnichannel innovation, the retail market is experiencing a dynamic comeback. Here's what you need to know.

The Experience Economy is Leading the Way

Forget transactional shopping. In 2025, consumers are prioritizing experiential retail—immersive, engaging, and personalized. Leading retailers like Nike and Lululemon are designing their stores as destinations, merging physical space with tech and lifestyle programming to drive traffic and loyalty.

While experiential features grab headlines, only 35% of consumers consider them essential. The key for retailers is finding the right balance between innovation and convenience.

Urban Retail Corridors Are Heating Up Again

High-street retail is roaring back in top metros. Neighborhoods in Los Angeles, New York, and San Francisco—once plagued with pandemic-era vacancies—are now experiencing strong leasing activity, especially from digitally-native brands testing physical locations.

Omnichannel Retail Is the New Standard

Rather than replacing brick-and-mortar, e-commerce has become a strategic partner. Retailers are retooling physical stores to act as micro-fulfillment centers, return hubs, and branding touchpoints. This omnichannel approach is particularly effective in urban infill markets and lifestyle centers. 

Recent studies indicate that 73% of retail consumers engage in omnichannel shopping, utilizing multiple channels throughout their purchasing journey. This underscores the importance of seamless integration between online and offline platforms to meet evolving consumer expectations.

Adaptive Reuse & Smart Redevelopment Are in Focus

New retail construction remains conservative, but redevelopment is thriving. Across the U.S., outdated malls and big-box vacancies are being repurposed into medical centers, coworking spaces, or last-mile logistics hubs—often with a curated retail component.

In particular, Placer.ai notes that redevelopment projects offering flexible layouts are attracting a wider mix of tenants, particularly in suburban and mixed-use corridors.

Investors Are Re-entering the Retail Market

Retail assets, particularly neighborhood shopping centers and net lease properties, are back on investor radars. Demand is strong for properties anchored by grocery, fitness, healthcare, and pet services—tenants considered recession-resistant. CAP rates remain relatively stable, with some compression in high-demand submarkets.

Retail's Next Chapter Has Begun

The 2025 retail landscape reflects a deeper transformation—not a return to old norms, but the birth of something smarter, leaner, and more aligned with consumer expectations. For brokers, investors, and developers, this presents an opportunity to lead with creativity, data, and long-term vision.