Despite a wave of retailer bankruptcies and store closures, the US market for retail space also showed remarkable resilience, with a national vacancy rate of just 4.2% in 2025’s opening quarter. “Brick-and-mortar store locations are far from obsolete and they’re maturing from simple points of sale, into dynamic touchpoints that reflect how consumers want to engage,” Solanki says.

Retail is becoming increasingly omnichannel.Solanki notes that last year, physical stores supported over 30% of online retail sales through curbside pickup, in-store collection or direct shipping from stores, highlighting their essential role in today’s retail ecosystem.

“Colliers had projected this level of store-enabled digital fulfillment by 2025, but the industry hit that milestone ahead of schedule—demonstrating the accelerated pace of omnichannel adoption. By 2030, omnichannel methods are predicted to fulfill 36.3% of online orders,” she says.

Competition Increases for Retail Space

While physical retail has experienced some softening, most vacant locations have back-filled quickly, according to Colliers’ Nicole Larson, manager of national retail research. She adds that retailers are shifting to optimizing existing spaces, as new retail supply is projected to drop by 45% in 2025 and vacancy rates remain tight.

“Quality space is hard to come by. Vacancies are filling at the fastest pace in nearly 15 years, reflecting intense competition for prime locations,” says Larson.

Despite the headlines of store closure, the retail landscape is more nuanced. Larson notes that between 2018 and 2023, over 18,900 new stores opened nationwide, with international retailers accounting for more than 25% of that growth, signaling confidence in US brick-and-mortar.

Retailers Stay Focused as Tariff Landscape Evolves

Retailers are monitoring potential tariff impacts closely, especially as inflation continues to shape consumer spending habits “US consumer sentiment has declined significantly in 2025, reflecting growing concerns over inflation, tariffs and economic uncertainty,” says Larson, noting that retailers are acutely aware of how consumers would respond to price hikes. “Many consumers are likely to adjust their spending habits, such as comparison shopping or prioritizing essentials, according to recent surveys

As inflation and tariffs continue to weigh on sentiment—down 34% year-over-year—consumers are becoming increasingly price-sensitive, with 62% expressing concern over rising apparel costs, especially among younger shoppers, leading to more comparison shopping and reduced discretionary spending.

Despite ongoing challenges, physical retail continues to demonstrate its resilience and remains central to the equation.

“Retailers who embrace flexibility through strategic expansion, pricing agility, or channel integration will be best positioned to lead,” says Larson. “Today’s retail story isn’t about decline but transformation.”

Visit Colliers at ICSC Las Vegas, South Hall Upper booth 4009Q.