Available retail space increases for first time in two years
The recent stretch of store closings has pushed retail space availability to a new two-year high.
Commercial real estate data firm CoStar’s newest report reveals that store closures more than doubled in 2024 compared to 2023, pushing the retail space availability rate to 4.8%. This marks the most retail space available for lease than at any point in the past two years.
CoStar says that since the start of 2024, retailers have announced plans to close more than 10,000 stores, with chains like Big Lots, Joann, and Party City closing hundreds of locations. Closures have led retail space availability to increase by approximately 12.5 million sq. ft. since the start of 2025.
Of the 143 U.S. markets within the CoStar national retail index, available retail space increased in 79 over the past year, while 64 saw a decline in retail space availability over the same time frame. In comparison, in the first quarter of 2024, just 58 of the 143 markets increased retail space availability over the prior year, whereas 85 saw availability decline.
Among the 44 major U.S. retail markets, defined as those with at least 100 million sq. ft. of retail space, availability increased in 24 over the past year. Austin saw the largest increase in retail availability, followed by Pittsburgh, St. Louis, San Antonio, and Atlanta.
Overall, Detroit has the highest availability rate, at just above 6.5%. The Motor City is closely followed by several markets in California, including the Inland Empire, Sacramento, and Los Angeles.
[READ MORE: CBRE: Available anchor space in Georgia rose by 57% in 2024]
While retail space is still tight overall, 20 major retail markets have seen retail space availability decline over the past year, including three of the fastest-growing markets in the country in Tampa, Nashville, and Orlando. Each market has seen availability drop more than 50 basis points during that time.
“The U.S. retail market is undergoing a shift as available space increases due to the large number of store closures and bankruptcies,” said Brandon Svec, national director of U.S. retail analytics at CoStar. “However, the overall market for retail space remains tight, particularly for prime locations, even as the loosening of availability for mid-sized boxes in power and community centers offers a fresh batch of expansion opportunities for retailers.”
