Holiday Spending Drives Retail Gains Holiday retail spending grew 4.2% in the US as in-store sales captured 73% of spend, with strong gains in electronics and apparel...

By Marc Perlof | MarcRetailGuy December 29, 2025 If you own retail real estate, here is what just changed for you. The New Year signifies more than just a new calendar. It marks the official reset point for tenant expectations, capital planning, and leasing strategy for retail property owners. Preliminary data for 2026 suggests that moderate but consistent growth is on the horizon. The Conference Board anticipates that consumer spending will increase by approximately 2% in Q1, primarily fueled by essential goods and neighborhood convenience retail.¹ The status of discretionary categories is still unclear. At the end of 2025, vacancy rates in neighborhood centers throughout the U.S. stood at 5.2%, marking the lowest level in over ten years.² While strong demand and limited new construction give landlords more leverage, it is crucial for them to use data to guide their decisions. The tone is set in January. Those tenants who ended the holiday period with a flat or negative performance are the most susceptible to cash flow stress in the early part of the year. This year, online commerce is projected to increase by another 7%, with mobile now leading the way in discovery and price comparison.³ Centers that facilitate easy access, smooth parking flow, designated pickup areas, and good visibility will attract tenants who are ready to pay higher rents for operational efficiency. It should now be simple for you to focus. Check year-end tenant sales or foot traffic counts, if they are available. Assess the recovery and operating costs of CAM. Determine areas that require repositioning. And begin discussions about renewal ahead of time with tenants who have done well. Powerful operators have already devised their strategy for 2026. Also, landlords should. Call or DM me. I can walk you through a New Year portfolio checkup that turns uncertainty into a strategy you can execute. Are you starting 2026 with clear data or just waiting to see what happens? #retailrealestate #CRE #2026retailoutlook #retailinvestment #leasingstrategy