U.S. retail asking rent growth slowed to 1.6% year over year in the second quarter of 2026, the slowest pace in more than a decade, according to CoStar. Brandon Svec, national director of retail analytics at CoStar Group, said the deceleration reflects normalization rather than weakening demand, citing softer consumer spending growth, elevated interest rates, and greater tenant cost pressures. Despite the slowdown, landlords continue to realize substantial rent spreads when space turns over, particularly in high-traffic retail corridors where available space remains scarce. Several Sun Belt markets that led rent growth earlier in the cycle, including Phoenix, Orlando, Atlanta, Charlotte, and Las Vegas, remain among the stronger performers nationally, posting annual rent growth between roughly 3% and 6%, though many of these markets have seen moderating rent gains.
CoStar Group IncCoStar's retail analytics business is mentioned as the source of the data; the slowdown in rent growth is a neutral industry trend, not directly affecting CoStar's own product demand.