**Retail Sector Holds Steady in Q2 2025, According to Partner Valuation Advisors Report**
Partner Valuation Advisors has released its Mid-Year 2025 Retail Market Snapshot, offering a comprehensive overview of the retail landscape in the second quarter of the year. The report reveals that the retail sector remained stable, showing no significant surprises but underscoring a continued divergence in performance across different asset types.
Grocery-anchored shopping centers and long-term net lease properties continue to attract strong investor interest, maintaining their positions as favored asset classes. In contrast, regional malls are still grappling with structural challenges, including ongoing store closures and concerns over potential tariffs that could influence consumer spending.
Transaction volumes saw a modest uptick in Q2, but property valuations largely held steady despite these headwinds. Select categories within the retail space, particularly experiential retail, have shown resilience and sustained tenant demand.
While investor appetite remains robust for grocery-anchored centers and single-tenant retail properties, regional malls continue to face headwinds. Notably, retailers like Dick’s House of Sports are taking a targeted approach, expanding selectively into mall locations to leverage increased foot traffic.
Among recent high-profile transactions, Federal Realty Investment Trust acquired Town Center Plaza and Town Center Crossing in Kansas. The deal encompasses 550,000 square feet of retail space and was valued at $289 million.
This latest report from Partner Valuation Advisors emphasizes the stability of the sector alongside the shifting dynamics between asset classes, setting the tone for the remainder of 2025.
