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Retail Performance, Office Recovery Vary by Market
Overall U.S. shopping center foot traffic increased across most states in 2025, although some regions are softer and the level of performance is format-specific, led by convenience retailers, Placer.ai says in a new white paper. That being the case, “Broad-based traffic gains indicate consumer demand is more durable than anticipated,” the white paper states.
Another commercial property sector whose fortunes are tied to attendance—office—continues to see post-pandemic recovery trajectories vary meaningfully by metro area. The white paper cites a correlation between a market’s median household income and the level of recovery compared to 2019 and 2024.
These are two of the high-level conclusions drawn in Placer.ai’s 2026 CRE Outlook, which also chronicles domestic migration growth and its implications for commercial real estate. Here, the white paper reports that growth is concentrated in select states, with the strongest population increases occurring in smaller, lifestyle-oriented metros rather than major gateway cities.
“CRE operators should prioritize expansion, leasing and site selection in high-growth secondary metros where population inflows can directly translate into retail spending, housing absorption and service demand,” says Placer.ai.
- ◦Lease
- ◦Economy
