Retail Asset Types Show Continued Divergence, Says Partner Valuation Advisors
Partner Valuation Advisors’ Mid-Year 2025 Retail Market Snapshot reports a stable second quarter for the retail sector, with no major surprises. However, the report highlights a continued divergence among different retail asset types.
Grocery-anchored centers and long-term net lease properties remain highly desirable investment targets. In contrast, regional malls continue to face significant headwinds, further challenged by concerns that rising tariffs may weaken consumer spending.
Transaction volume saw a modest increase during the second quarter, while valuations and cap rates remained steady despite a wave of store closures. High-profile retailers, including Rite Aid, Hooters, Forever 21, and Joann Fabrics & Crafts, all filed for Chapter 11 bankruptcy protection in 2025.
Despite these pressures, tenant demand in specific segments—particularly experiential retail—remains resilient. Some brands, such as Dick’s House of Sports, are even expanding their presence in mall environments.
Looking ahead, Partner Valuation Advisors anticipates a period of stabilization during the second half of the year, as the pace of closures slows and more vacant spaces are absorbed back into the market.
Pictured: A Safeway-anchored retail center in West Seattle, which sold for $35.4 million in June.
