CoStar’s new ranking of the top 10 U.S. retail markets for 2025 shows a Sun Belt–heavy lineup where tight availability, durable rent growth and solid total returns—rather than one-off leasing spikes—define performance across a diverse set of metros. The list, drawn from 43 markets with at least 100 million square feet of retail inventory, underscores how investors are being rewarded in markets that pair disciplined supply with steady consumer and capital flows.
CoStar developed the 2025 retail league table using five equally weighted metrics: percent of inventory leased, availability rate, market rent growth, year‑over‑year change in sales volume and total return for retail properties as measured by its market price index.
The result is a composite performance score that balances income durability, pricing strength and transaction depth, rather than favoring any single growth indicator. Among the 43 markets analyzed, the average availability rate was 4.6%, the average asking rent growth was 1.8% and the average total return was 6.6%.
Charlotte Sets the Pace
Charlotte, which straddles North and South Carolina, tops the list this year, moving up from sixth place in 2024 and leading all markets in both asking rent growth and total return. The market posted 7.4% annual asking-rent growth and an 11.6% total return, with 1.4% of inventory leased during the period and a 3.4% availability rate—each higher than the national large‑market averages.
“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, adding that Charlotte’s rise “was predicated on demographic tailwinds, a diversified economy, and a disciplined supply pipeline.”
Tampa and Orlando Extend Florida’s Run
Tampa takes the second slot, not by dominating any one metric but by producing consistent numbers across the board: 2% of inventory leased, a 3.8% availability rate, 4.5% asking rent growth and a 7.8% total return.
CoStar notes that Tampa continues to benefit from strong population inflows and tight retail space availability, supporting steady demand for space even as broader capital markets remain selective.
Moving more to the Southwest in the Sunshine State, Orlando ranks third, with 2.3% of inventory leased and 4.8% rent growth against a slightly higher 4.4% availability rate and its 10.2% total return places it among the most rewarding markets on the list despite a modest year‑over‑year dip in sales volume.
Dallas, Norfolk and Kansas City Show Breadth
Dallas lands in fourth place, illustrating how scale and transaction activity can translate into outsized performance when fundamentals stay tight. The metro recorded 2.1% of inventory leased, a 5.1% availability rate and 3.4% rent growth, but its standout figure is a 113.6% surge in sales volume, which helped deliver a 7.5% total return and confirmed deep investor interest in the market’s retail product.
Norfolk rounds out the top five with 2.4% of inventory leased—the highest share among the top 10—paired with a 5.2% availability rate, 4.5% rent growth and a 10.4% total return.
Kansas City sits sixth. Its availability rate, at 5%, is above the top‑10 average, but the market offsets that with 1.6% of inventory leased, 3.8% rent growth, a nearly 60% increase in sales volume and a 9.6% total return—figures that surpass the broader 43‑market benchmark on both development and pricing.
Nashville and Miami: Different Paths, Strong Outcomes
Nashville, at No. 7, reflects a maturing growth market where fundamentals remain tight but rent growth has normalized from earlier spikes. The metro added 1.3% of inventory leased with a 3.7% availability rate, delivering robust 5.2% rent growth—the third‑highest among the top 10 and an 11.1% total return, second only to Charlotte.
Miami, ranked eighth, shows the benefits of extreme space scarcity: availability sits at just 2.8%, yet rent growth is modest at 1.2%, while total return of 7.6% and a 75.7% jump in sales volume underscore how investors continue to pay up for limited product in a gateway‑plus Sun Belt market.
Phoenix and Columbus Close Out the List
Phoenix secures the ninth spot, supported by 1.9% of inventory leased and 4.9% rent growth, placing it among the stronger rent‑growth markets in the ranking. Availability in Phoenix is 4.9%, roughly in line with the broader 43‑market average, while sales volume rose 2% and total return reached 9%, signaling a market where both occupier and investor demand remain resilient after several years of rapid expansion.
Columbus rounds out the top 10 with 1.6% of inventory leased, a 3.6% availability rate and 2.9% rent growth. And while the market logged a 14.7% decline in sales volume, its 10.2% total return places it firmly in the upper tier for price performance.
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