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Back in the black: Demand for retail space turns positive

Turnaround picks up in third quarter for store properties
Strong demand to backfill recent closures helped push the net change in retail occupancy positive in the third quarter. This former Party City in the 380 Towne Crossing shopping center in McKinney, Texas, was available for three months before it was leased by Western apparel retailer Cavendars. (CoStar)
Strong demand to backfill recent closures helped push the net change in retail occupancy positive in the third quarter. This former Party City in the 380 Towne Crossing shopping center in McKinney, Texas, was available for three months before it was leased by Western apparel retailer Cavendars. (CoStar)
CoStar Analytics
October 27, 2025 | 2:45 AM

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After recording the first consecutive quarterly declines since 2020, retail demand is back in the black heading into the final quarter of the year.

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News | Back in the black: Demand for retail space turns positive