The Best Cities to Buy Retail Property in 2025
The retail commercial real estate market has experienced notable shifts, driven by rising interest rates, evolving tenant demand, and an increase in available retail space in some markets. While these changes have created challenges, they also present opportunities for savvy investors. Retail leasing has remained resilient, supported by strong consumer activity in key segments, particularly in non-merchant categories, and the continued recovery of physical retail spaces post-pandemic.
Vacancy rates across most US. markets are at or near 20-year lows, following three consecutive years of robust demand and limited new development. This trend, coupled with climbing rents, underscores the post-pandemic rebound in the demand for physical retail space and spell positive news for the future of retail property investment. Retail investments have also demonstrated relative stability compared to other commercial property types, as this sector did not experience the extreme price surges or cap rate compression seen elsewhere. Grocery-anchored community centers and open-air shopping centers have led leasing activity, supported by strong fundamentals and consistent consumer traffic.
Looking ahead to 2025, the retail market presents unique opportunities for investors. While challenges such as drug store closures and rising construction costs persist, these factors also create the potential for redevelopment and adaptive reuse. This article highlights the top ten US cities poised for growth in retail real estate, offering insights into where to invest for long-term success.
10 Top Cities for Retail Investing in 2025
Here are the top 10 US cities with the highest percentage of buy and hold recommendations for retail, according to insights Emerging Trends in Real Estate 2025 by the Urban Land Institute and PwC and other industry sources.
Commercial real estate statistics are from Crexi Intelligence as of April 2025. By leveraging Crexi, users can instantly analyze retail market trends and review retail properties for sale or lease. The detailed database of sales comparables, retail industry reports, in-depth analytics, and demographic data enables instant evaluation in today's continually evolving retail market landscape.
1. Miami
Miami continues to lead as one of the best retail real estate markets in 2025, with retail real estate growth in Miami driven by high consumer activity and low vacancy rates. Its vibrant culture, stunning beaches, and world-renowned hotels attract millions of visitors annually, creating a thriving environment for retailers. As a top city for retail property investment, Miami’s strong demand for grocery-anchored retail centers also underscores its appeal to national and international investors.
The city’s retail sector benefits from strong economic fundamentals, including a low unemployment rate of 1.4% as of mid-2024, which reflects a healthy and active local economy. This economic vitality is further supported by a growing population of over 440,000 residents, many of whom contribute to the demand for high-quality retail spaces.
Miami’s retail market also boasts some of the highest asking rents in the country, averaging $47 per square foot annually in 2024, underscoring the strong demand for space in this competitive market. The retail vacancy rate remains exceptionally low at 2.8%, highlighting the limited supply of available spaces in desirable locations. These factors, combined with the city’s robust tourism industry and its appeal as a global destination, make Miami a top-tier city for retail investors looking to capitalize on a dynamic and high-performing market.
Crexi Intelligence Miami Retail Trends
For Lease (active)
- Asking rent (annual): $37/SF
- Spaces available on Crexi: 649
- Median SqFt: 2,314
- Days on market: 222
For Sale (active)
- Asking sale price (median): $549.7K
- Price/SqFt: $559
- Asking cap rate: 5.4%
- Total listings: 635
- Days on market: 127
Sales Comps (past 12 months)
- Median sales price: $1.4 million
- Sold price /SqFt: $339
- Sold cap rate: 6.5%
- Total sales volume: $124 million
- Days on market: 139
2. Cleveland
Cleveland’s position as a Midwest retail market hotspot is reinforced by its low vacancy rates and adaptive reuse of retail spaces for urban redevelopment. As of the most recent data, the retail vacancy rate in Northeast Ohio, which includes Cleveland, stood at a record low of 4.6%, indicating strong demand for retail spaces. This demand is further reflected in the average asking rents, which registered at $10.58 per square foot in the first quarter of 2024.
The city’s economic environment also bolsters the retail sector. As of September 2024, the Cleveland-Elyria metropolitan area reported an unemployment rate of 4.4%, suggesting a stable labor market. Retail property investment opportunities in Cleveland also benefit from the city’s focus on urban retail redevelopment, its expanding consumer base, and its strategic location. These factors collectively position Cleveland as a viable market for retail property investment, offering opportunities for growth and returns.
Crexi Intelligence Cleveland Retail Trends
For Lease (active)
- Asking rent (annual): $22/SF
- Spaces available on Crexi:170
- Median SqFt: 2,550
- Days on market: 262
For Sale (active)
- Asking sale price (median): $549,900
- Price/SqFt:- $156
- Asking cap rate: 7.4%
- Total listings: 73
- Days on market: 123
Sales Comps (past 12 months)
- Median sales price: $100,500
- Sold price /SqFt: $31
- Sold cap rate: 6.4%
- Total sales volume: $86.9million
- Days on market: 255
3. Atlanta
Atlanta, a key player among the top cities for retail property investment, has demonstrated consistent retail real estate growth due to its strong economic indicators. As of September 2024, the Atlanta metropolitan area’s unemployment rate was 3.2%, reflecting a strong labor market that supports consumer spending and retail activity. The city’s population has been steadily increasing, reaching approximately 498,715 residents, with a median household income of $69,164, indicating a solid economic foundation and reinforcing its status as a top retail market in the South.
The retail real estate sector in Atlanta is experiencing significant demand, with a vacancy rate of 3.6% as of the first quarter of 2024, near historic lows and 250 basis points below the 10-year average. This high demand has driven average asking rents to a new high of $20.03 per square foot, with Class A spaces commanding $26.47 per square foot. Despite economic headwinds, rising rental rates and limited supply, Atlanta offers some of the best retail real estate opportunities in the Southeast. These factors, combined with Atlanta’s steady population growth and increasing household incomes, make it an attractive market for retail property investment.
Crexi Intelligence Atlanta Retail Trends
For Lease (active)
- Asking rent (annual): $32/SF
- Spaces available on Crexi: 460
- Median SqFt: 2,413
- Days on market: 263
For Sale (active)
- Asking sale price (median): $895,000
- Price/SqFt: $302
- Asking cap rate: 4.2%
- Total listings: 148
- Days on market: 152
Sales Comps (past 12 months)
- Median sales price: $787,500
- Sold price /SqFt: $198
- Total sales volume: $52 million
- Days on market: 93
4. Chicago
Chicago, known for its vibrant urban retail redevelopment opportunities, is among the best retail real estate markets in the country. As of mid-2024, the city’s retail vacancy rate reached a record low of 5.1%, marking seven consecutive quarters of decline and reflecting strong demand for retail spaces. This trend is further supported by significant absorption rates, with nearly 4 million square feet of retail space absorbed by the end of 2023, indicating a vibrant retail sector. The city's low vacancy rates and consistent demand signal a strong future for retail spaces, particularly in grocery-anchored centers.
The economic landscape in Chicago bolsters this positive outlook. As of September 2024, the Chicago metropolitan division reported an unemployment rate of 4.2%, suggesting a stable labor market conducive to consumer spending. The city’s population stands at approximately 2.7 million, with a median household income of $65,781, providing a solid consumer base for retailers.
Crexi Intelligence Chicago Retail Trends
For Lease (active)
- Asking rent (annual): $26/SF
- Spaces available on Crexi: 1,497
- Median SqFt: 2,223
- Days on market: 292
For Sale (active)
- Asking sale price (median): $1.1 million
- Price/SqFt: $185
- Asking cap rate: 7.5%
- Total listings: 414
- Days on market: 175
Sales Comps (past 12 months)
- Median sales price: $645,000
- Sold price /SqFt: $166
- Sold cap rate: 7.6%
- Total sales volume: $549.7 million
- Days on market: 325
5. Washington, D.C.
Washington, D.C., stands out for its urban retail redevelopment opportunities, attracting investors focused on long-term growth in high-demand areas. As of the third quarter of 2024, the city’s retail sector has demonstrated resilience, with a vacancy rate of 5.4%, indicating strong demand for retail spaces. This demand is further underscored by the city’s strategic location and status as a major urban center, attracting national and international retailers.
As of September 2024, the city’s unemployment rate stood at 4.8%, reflecting a stable labor market conducive to consumer spending. The District’s population is approximately 670,050, with a median household income of $90,842, providing a solid consumer base for potential retail businesses. Additionally, the city’s diverse economy and ongoing urban development initiatives create opportunities for retailers and investors alike. As vacancy rates remain low, retail property investment opportunities in D.C. continue to provide consistent returns for savvy investors.
Crexi Intelligence Washington, DC Retail Trends
For Lease (active)
- Asking rent (annual): $36/SF
- Spaces available on Crexi: 412
- Median SqFt: 2,363
- Days on market: 334
For Sale (active)
- Asking sale price (median): $1.9 million
- Price/SqFt: $549
- Asking cap rate: 5.8%
- Total listings: 82
- Days on market: 121
Sales Comps (past 12 months)
- Median sales price: $1.8 million
- Sold price /SqFt: $353
- Total sales volume: $73.6 million
- Days on market: 126
6. St. Louis
As one of the most affordable Midwest retail markets, St. Louis offers strong potential for investors exploring grocery-anchored retail centers. In the third quarter of 2024, the city’s retail market maintained a low vacancy rate of 5.2%, reflecting sustained demand for retail spaces. This trend is further supported by positive net absorption, with over 230,000 square feet absorbed year-to-date, indicating active tenant engagement and a healthy leasing environment in this up-and-coming retail investment.
The economic backdrop of St. Louis enhances its appeal for retail investors. The unemployment rate stood at 3.9% in the third quarter of 2024, below the national average of 4.1%, signifying a resilient labor market that supports consumer spending. Additionally, the region’s gross domestic product (GDP) grew by 2.4% year-over-year, underscoring economic stability. These factors, combined with a strategic location and ongoing urban development initiatives, position St. Louis as an attractive market for retail property investment, offering potential for sustained growth and favorable returns.
Crexi Intelligence St Louis Retail Trends
For Lease (active)
- Asking rent (annual): $16/SF
- Spaces available on Crexi: 517
- Median SqFt: 2,305
- Days on market: 325
For Sale (active)
- Asking sale price (median): $699,500
- Price/SqFt: $122
- Asking cap rate: 7.2%
- Total listings: 142
- Days on market: 199
Sales Comps (past 12 months)
- Median sales price: $525,900
- Sold price /SqFt: $79
- Sold cap rate: 7.4%
- Total sales volume: $14.8 million
- Days on market: 247
7. Boston
Boston’s retail real estate market continues to thrive, marked by high consumer spending trends and a strong retail property outlook. As of March 2024, the city’s retail vacancy rate was among the lowest in the nation, comparable to markets like Miami and Raleigh. This tight market is attributed to limited retail space supply and high area median incomes, which have collectively driven up average asking rents. By mid-2024, asking rents had increased by 1.3% over the previous year, indicating positive returns for owners.
Prominent shopping destinations such as Newbury Street and the Prudential Center exemplify the thriving retail market growth in Boston. These areas continue attracting national and international retailers, benefiting from the city’s affluent consumer base and steady tourism. The combination of high demand, limited supply, and strong economic indicators positions Boston as an attractive market for retail property investment, offering potential for sustained growth and favorable returns.
Crexi Intelligence Boston Retail Trends
For Lease (active)
- Asking rent (annual): $24/SF
- Spaces available on Crexi: 177
- Median SqFt: 3,000
- Days on market: 74
For Sale (active)
- Asking sale price (median): $1.7 million
- Price/SqFt: $530
- Asking cap rate: 4.7%
- Total listings: 30
- Days on market: 99
Sales Comps (past 12 months)
- Median sales price: $1.7 million
- Sold price /SqFt: $453
- Total sales volume: $225.8 million
- Days on market: 265
8. Indianapolis
Indianapolis is gaining attention as a Midwest retail market hotspot, with steady growth in consumer spending trends and retail leasing activity. As of the third quarter of 2024, the city’s retail market had a net absorption of 265,000 square feet, indicating strong demand for retail spaces. This positive absorption trend reflects the market’s capacity to attract and retain different types of retail tenants, contributing to a dynamic shopping environment for consumers.
The economic landscape in Indianapolis further enhances its appeal to investors. The unemployment rate in the Indianapolis-Carmel-Anderson metropolitan area stood at 3.4% as of September 2024, below the national average, signifying a healthy labor market and growing household income that supports consumer spending. Additionally, the city’s population has been steadily increasing, with a current estimate of approximately 874,000, providing a substantial consumer base for retailers.
Crexi Intelligence Indianapolis Retail Trends
For Lease (active)
- Asking rent (annual): $22/SF
- Spaces available on Crexi: 415
- Median SqFt: 2,439
- Days on market: 303
For Sale (active)
- Asking sale price (median): $1.1 million
- Price/SqFt: $210
- Asking cap rate: 7.1%
- Total listings: 118
- Days on market: 128
Sales Comps (past 12 months)
- Median sales price: $665,000
- Sold price /SqFt: $143
- Sold cap rate: 8.1%
- Total sales volume: $160.2 million
- Days on market: 116
9. Nashville
Nashville’s future of retail spaces is shaped by a growing population and vibrant economic indicators, positioning it as a top city for retail property investment. As of September 2024, the Nashville-Davidson–Murfreesboro–Franklin metropolitan area’s unemployment rate stood at 2.8%, reflecting a strong labor market. This economic vitality is further evidenced by a 6.04% increase in median household income, reaching $72,537 in 2021.
The city’s diverse economy, encompassing thriving sectors such as healthcare and music recording, has been instrumental in sustaining low unemployment rates and fostering economic resilience. Nashville’s population growth, with an estimated 1.96 million residents in the metropolitan area as of 2021, underscores its appeal as a dynamic urban center. This combination of economic diversity and demographic expansion ranks Nashville as a vibrant market with promising opportunities for investment and development.
Crexi Intelligence Nashville Retail Trends
For Lease (active)
- Asking rent (annual): $21/SF
- Spaces available on Crexi: 315
- Median SqFt: 2,282
- Days on market: 265
For Sale (active)
- Asking sale price (median): $2.2 million
- Price/SqFt: $379
- Asking cap rate: 5%
- Total listings: 82
- Days on market: 115
Sales Comps (past 12 months)
- Median sales price: $1.8 million
- Sold price /SqFt: $380
- Sold cap rate: 6.4%
- Total sales volume: $310.9 million
- Days on market: 347
10. San Antonio
San Antonio, a key player in Texas retail real estate trends, is experiencing rising demand for open-air shopping center investments and grocery-anchored developments. As of the third quarter of 2024, the city’s retail sector maintained a low vacancy rate of 4.0%, consistent over the past eight quarters, indicating strong demand for retail spaces. This sustained demand has led to a 5% year-over-year increase in average rental rates, reaching an all-time high of $19.90 per square foot.
The city’s diversified economy, with significant contributions from the healthcare, military, and tourism sectors, bolsters its retail market. As of September 2024, the San Antonio metropolitan area’s unemployment rate stood at 3.6%, reflecting a healthy labor market that supports consumer spending. Additionally, San Antonio’s population has been steadily increasing, with a yearly growth rate of 1.69%, providing a substantial retailer consumer base. These factors collectively position San Antonio as an attractive destination for retail property investment with the potential for sustained growth and favorable returns.
Crexi Intelligence San Antonio Retail Trends
For Lease (active)
- Asking rent (annual): $21/SF
- Spaces available on Crexi: 1,311
- Median SqFt: 2,388
- Days on market: 191
For Sale (active)
- Asking sale price (median): $1.3 million
- Price/SqFt: $229
- Asking cap rate: 6.5%
- Total listings: 234
- Days on market: 104
Sales Comps (past 12 months)
- Median sales price: $682,300
- Sold price /SqFt: $154
- Sold cap rate: 6.1%
- Total sales volume: $281.6 million
- Days on market: 110
These top retail real estate markets demonstrate where to invest in retail property while staying aligned with trends shaping retail investment in 2025. Investors scouting properties in these high-performing markets can capitalize on resilient demand and favorable market dynamics, achieving potential ROI on such investments.
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