The International Council of Shopping Centers reported on May 15 that retail real estate activity is showing renewed momentum, with increases in lending, redevelopment projects, leasing efforts, and store expansions across the United States.
This trend is significant for the retail and commercial property sectors as it suggests improving confidence among investors, developers, and retailers after several years of uncertainty. Increased lending activity often signals greater willingness by financial institutions to back new developments or redevelopments.
According to the organization, the CBRE Lending Momentum Index reached 1.5 in the first quarter of this year—its highest point since 2021—reflecting increased loan sizes and improved loan-to-value ratios. Shopoff Realty Investments has begun construction on Bolsa Pacific, an 83-acre mixed-use redevelopment project at a former mall site in Orange County, California. Meanwhile, leasing has started for Village Landing in Wellington, Florida—a more than 400,000-square-foot mixed-use development led by Related Ross.
Retailers are also expanding their physical footprints. Aritzia plans to grow its U.S. store count from its current total of 76 up to between 180 and 200 locations over time. “We have a ton of runway in the U.S. still to go,” said Jennifer Wong during a recent earnings call. Target will open thirty new stores across thirteen major markets this year while remodeling over one hundred existing locations; Best Buy announced net domestic store growth for the first time in more than ten years with six new stores planned for fiscal year 2027.
Other notable developments include Wawa’s $375 million plan to launch fifty stores in Tennessee and Dutch Bros Coffee acquiring twenty-nine shops around Phoenix as part of its goal to reach over two thousand stores by 2029. Canadian grocery chain Loblaw Cos., following trends set by Aldi and Lidl, is focusing on value-driven shoppers with plans for approximately twenty-five additional discount-format stores this year.
Leadership changes were also highlighted: Paul Kurzawa will become CEO at Centennial as founder Steven Levin retires; Richard Kessler was promoted to CEO at Benenson Capital Partners; Nichole Popovics succeeds Sam Latone as president of TSCG; Brand Properties appointed Lynn Lewis and Shannon Lasswell to newly created executive roles.
