CoStar: Sunbelt cities named top-performing retail markets of 2025
The Sunbelt continued to dominate the rest of the country when it came to retail performance in 2025.
Among the top 43 U.S. retail markets with at least 100 million sq. ft. of retail real estate inventory, Charlotte, N.C., ranked first, outperforming all other markets when looking at asking rent growth (+7.4%) and total return (11.6%), according to the latest data from CoStar Group.
This year's top-performing rankings were based on five equally weighted indicators: Percent of inventory leased, availability rate, market rent growth, change in sales volume and total return for retail properties as measured by CoStar’s market price index.
The Queen City was followed by Tampa, Fla., Orlando, Fla., Dallas and Norfolk, Va. in the rankings. Only two Midwestern cities – Kansas City, Mo., and Columbus, Ohio – landed in the top 10 for 2025. (List of top 10 at end of article.)
[READ MORE: CoStar: Retail vacancy rates to rise in first half of 2026]
CoStar credits Charlotte’s success in part with white-collar job growth in 2025 that outpaced a slower national labor market, fueling substantial greenfield housing development in the suburbs. Neighborhood retail centers, particularly newly-built grocery-anchored properties, have been a magnet for brand expansion from fitness, discounters, grocers, and home goods-related tenants, according to CoStar.
Other cities in the top 10 reflect a mix of "established growth hubs and emerging markets." In Florida, CoStar says Tampa and Orlando continued to benefit from strong population inflows and tight retail space availability in 2025, while Dallas’ performance was helped by its “scale and transaction activity.”
“Sunbelt cities continue to dominate rankings due to demographic growth and business-friendly conditions,” said Brandon Svec, national director of retail analytics at CoStar Group. “After coming in sixth place last year, Charlotte’s rise to the top was predicated on demographic tailwinds, a diversified economy, and a disciplined supply pipeline.”
Here is CoStar's ranking of the top 10 retail markets of 2025:
Charlotte, N.C.;
Tampa, Fla.;
Orlando, Fla.;
Dallas;
Norfolk, Va.;
Kansas City, Mo.;
Nashville, Tenn.;
Miami;
Phoenix; and
Columbus, Ohio.
CoStar’s full analysis of the top retail markets can be found here.
