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Retail Asset Types Show Continued Divergence, Says Partner Valuation Advisors
Partner Valuation Advisors’ Mid-Year 2025 Retail Market Snapshot reports that the sector remained steady in the second quarter with no major surprises, but showed continued divergence among asset types. Grocery-anchored centers and long-term net lease properties continue to be highly sought after, while regional malls face ongoing challenges, including the potential impact of tariffs on consumer spending.
Transaction volume increased modestly in Q2, though valuations as well as cap rates held steady amid persistent store closures. Rite Aid, Hooters, Forever 21 and Joann Fabrics & Crafts have all filed for Chapter 11 protection since 2025 began.
Despite these headwinds, tenant demand in select segments, such as experiential retail, continues to show resilience, with some retailers actively expanding into mall environments, notably Dick’s House of Sports. Looking ahead, Partner Valuation Advisors forecasts stabilization as closures level off, and vacant spaces are reabsorbed in the year’s second half.
Pictured: A Safeway-anchored retail center in West Seattle, which traded for $35.4 million in June.
- ◦Sale/Acquisition
