Turning a Retail Slowdown Into Opportunity
If you’ve been following retail real estate headlines lately, you’ve likely seen the words “slowdown” and “softening” more than once. Cushman & Wakefield reported a 6 million square foot leasing deficit in Q1 2025, the weakest since the pandemic and ongoing big-box closures including Big Lots, Party City, and Joann, according to The Wall Street Journal.
In Q2 2025, Colliers reported U.S. retail net absorption remained negative at roughly 6.4 million square feet, with vacancy rates ticking up to 5.3%. Closures persist, from national big-box brands to fashion retailers, while leasing activity has slowed about 5% quarter-over-quarter.
But here’s the thing: slowdowns don’t stop retail, they reshape it. As the market shifts, opportunities shift along with it. For landlords, this is a moment to adapt, get creative, and fill spaces with concepts that energize properties and communities. For retailers, the current climate can be a springboard. High-quality concepts and innovative models like pop-ups and experience-driven activations are standing out, capturing attention, sparking curiosity, and motivating shoppers.
Why the “Slowdown” is Also an Opening
While it’s true that leasing cycles are stretching, it’s equally true that:
Prime locations are opening up — The current market is creating greater access to well-located spaces that were once out of reach, often at more favorable terms. For retailers, it’s a rare chance to secure high-visibility sites; for landlords, an opportunity to attract unique concepts that previously faced high competition for space.
Retailers are still growing just selectively — From specialty fitness to emerging food concepts and digitally native brands ready to go brick-and-mortar, plenty of operators are still in expansion mode. Landlords who take a proactive, research-driven approach can still land exciting deals.
Short-term activations create low-risk, long-term potential — Pop-ups, seasonal activations, and local artisan markets fill space quickly while allowing brands to test markets, refine offerings, and build buzz. Many of these concepts can evolve into permanent leases, giving both retailers and landlords strategic growth opportunities.
Negotiation flexibility and incentives are on the rise — From tenant improvement allowances to marketing support, deals are often sweeter for operators who can move quickly. Retailers can secure more favorable lease terms, while landlords can structure agreements to encourage investment in build-outs, promotions, and events that drive traffic.
Experiential concepts drive loyalty — From in-store workshops to live music and community classes, landlords and tenants can collaborate to create spaces that are more than just transactional; they become part of a shopper’s lifestyle.
Less competition creates stronger visibility — With fewer new openings in the market, the concepts that do launch are better positioned to capture attention, stand out, and build a loyal customer base.
Practical Strategies for Landlords Right Now
Curate with intention. Seek out retailers who offer something distinct in your market, be it a new-to-market brand, an Instagrammable café, or a hands-on craft studio.
Double down on relationships. Build connections with local entrepreneurs, franchise operators, and emerging brands. Often, your next great tenant won’t come from a national broker list; they'll be discovered through networking.
Blend retail with other uses, Consider bringing in fitness studios, co-working pods, or healthcare services to diversify foot traffic and reduce reliance on a single retail category.
Use data to matchmake. Lean on location analytics, demographic data, and shopper behavior trends to target prospects who will thrive in your space.
Activate your property beyond the lease. Seasonal events, farmers markets, or art installations keep the property vibrant and make it more attractive to prospective tenants.
Practical Strategies for Retailers Right Now
Act quickly on prime openings. Desirable spaces are hitting the market at more attractive terms, be ready to move fast with a clear decision-making process and prepared financials.
Negotiate from a position of value. Use the current climate to secure tenant improvement allowances, flexible lease lengths, and marketing support from landlords eager to fill space.
Test before committing. Consider short-term leases, pop-ups, or seasonal activations to gauge market response before signing a long-term deal.
Lean into experiential retail. Offer events, workshops, or interactive elements that give customers a reason to visit beyond a simple transaction.
Align with complementary neighbors. Choose locations near businesses that share your target audience and can drive cross-traffic.
Maximize omnichannel integration. Use your physical store to support online growth through click-and-collect, same-day delivery, and in-store-exclusive products.
The Bigger Picture
A retail slowdown is not a retail stop. The companies who will come out ahead are those who treat this moment as a runway, one where creativity, collaboration, and strategic leasing decisions shape stronger, more resilient tenant mixes.
Every market cycle presents new opportunities. Right now, those opportunities belong to landlords and retailers alike who stay curious, build relationships, and view every vacancy as a blank canvas. Landlords who curate intentionally and retailers who adapt strategically can both position themselves for lasting success. Leasing may take a little longer, but the right deals made today can define a property’s, and a brand’s growth for years to come.
