JLL: Retail investors plan more acquisitions than sales for 2026
The commercial real estate market is expected to remain ultra competitive through the remainder of the year.
Nearly two-thirds (64%) of investors plan to ramp up their retail acquisitions this year, while only 48% expect to sell more, according to JLL's 2026 U.S. Retail Thematic Outlook and Investor Survey. More than half (56%) of those surveyed said they see the market as “mid-cycle,” meaning fundamentals are strong, with rents and occupancy rising.
JLL noted that retail now commands 14% of U.S. sector investment, its highest share in 10 years. Trailing 12-month volume hit $62 billion, marking a 31% increase.
"We're seeing a level of investor conviction in retail that we haven't witnessed in over a decade," said JLL’s executive managing director and co-leader of the retail group Danny Finkle. “The fundamental driver is clear: there's not much new supply coming, vacancies are low and consumers keep showing up. That's creating real landlord pricing power, and investors want in."
[READ MORE: JLL debuts new Retail Solutions Group]
More than two-thirds (68%) of investors said they'd rather chase higher yields in secondary or tertiary markets than pay premium prices in primary markets. Secondary and tertiary markets like Charlotte, San Diego, Orlando, Denver and Kansas City have posted 4.3% year-over-year rental growth for grocery-anchored centers compared to 3.7% in primary markets, according to JLL. The wide majority (81%) of investors said grocery-anchored centers are part of their acquisition plans.
Power centers have quietly become just as sought after, according to JLL, with nearly three-quarters (73%) of investors now targeting them. Cap rates between the two formats have compressed to just 50 basis points apart, which JLL says means the investors see them as almost “equally attractive.”
When asked which tenants they favor most, Whole Foods topped the list, followed by TJX Brands, with Trader Joe’s, Target, Lululemon and Publix next in line. Grocery and discount department stores alone represented more than half (56%) of all the retailers investors mentioned.
"The convergence in pricing between grocery-anchored and power centers reflects how investors have gotten more sophisticated in evaluating retail," said JLL’s senior managing director and co-leader of the retail group Chris Angelone. "Both formats deliver what consumers need no matter what's happening in the economy. Whether it's Whole Foods or TJX Brands, these centers generate consistent foot traffic and sales that translate into steady returns."
JLL surveyed nearly 150 retail investors for its report.
