Economic volatility is continuing to steer capital toward segments of the retail property market that are viewed as more resilient, according to Marcus & Millichap’s latest national retail report. The firm notes that many buyers have prioritized retail assets that can provide relative stability in an uncertain macroeconomic environment.
The report finds that a significant share of investors has gravitated to single-tenant, net-leased retail properties. These assets are being targeted largely for their perceived lower risk profile, as investors seek predictable cash flows and simplified management structures. Net-lease deals can also offer clearer visibility on long-term income streams, which is proving attractive against a backdrop of shifting interest rates and inflation expectations.
At the same time, another cohort of investors is focusing on multi-tenant shopping centers that offer identifiable upside. According to Marcus & Millichap, these buyers are looking for value-add opportunities through re-tenanting, physical upgrades and stronger day-to-day management. In such cases, investors are betting that active asset management can enhance tenant mix, lift occupancy and ultimately drive higher net operating income over time.
National transaction data in the report underscores the durability of investor demand for retail. The number of retail trades of $20 million and above completed during the first half of 2026 registered as the second-highest tally ever recorded for a January-through-June period. That activity level indicates that, despite economic headwinds, qualified buyers and sellers are still finding common ground on pricing for larger retail assets.
Looking ahead, Marcus & Millichap suggests that continued inflationary pressures could further concentrate demand in specific retail property profiles. Assets leased to high-credit tenants with built-in rent escalations may draw increased attention from capital that is focused on income durability and inflation protection. Properties that offer contractual rent growth are particularly well positioned to appeal to investors who remain cautious about future rate movements and operating costs.
Recently renovated retail assets also stand out in the report’s findings. Properties that have undergone renovations within the past five years have commanded a notable pricing premium, trading at an average of more than $700 per square foot over the past 12 months. That pricing signals that buyers are willing to pay up for well-located, updated properties that may require limited near-term capital expenditure.
The report adds that an uptick in institutional capital targeting retail, combined with firmer pricing in parts of the sector, could support additional sell-side activity in the second half of 2026. If more institutional investors continue to allocate to retail and sellers respond to stronger valuations, the market could see a further increase in larger transaction volume as the year progresses.
