- Charlotte, N.C., ranked No. 1 among major US retail markets in 2025, thanks to strong rent growth (+7.4%) and double-digit total return (11.6%), according to CoStar.
- Sunbelt cities filled most of the top 10, including Tampa, Orlando, and Dallas, driven by demographic trends, business-friendly environments, and limited space availability.
- Midwestern markets saw limited representation, with only Kansas City and Columbus breaking into the top 10, showing the regional tilt of retail growth toward the South and Southwest.
Charlotte Leads The Pack
Charlotte earned the top spot in CoStar Group’s annual ranking of retail markets, reports CSA. It stood out among the 43 largest US metro areas with over 100M SF of retail space. The city posted the highest rent growth at 7.4% and an 11.6% total return in 2025, driven by job gains and suburban growth.
Grocery-anchored centers and neighborhood retail attracted demand from fitness chains, discount retailers, grocers, and home goods stores. These tenants are capitalizing on the city’s surging population and housing development.
The Sunbelt Surge Continues
Following Charlotte were Tampa and Orlando, two Florida metros that continue to benefit from migration and low retail vacancy. Dallas also ranked highly due to its market scale and steady transaction volume, while Norfolk, Va., rounded out the top five.
CoStar cited business-friendly policies and population growth as key factors driving top-performing retail markets, especially in Sunbelt regions.
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Methodology And Market Trends
CoStar’s 2025 retail rankings are based on five equally weighted metrics:
- Percent of inventory leased
- Availability rate
- Market rent growth
- Change in sales volume
- Total return (via CoStar’s Market Price Index)
Markets with limited supply and rising demand stood out, particularly where new retail development aligns with growing suburban expansion.
Top 10 US Retail Markets of 2025 (CoStar)
- Charlotte, N.C.
- Tampa, Fla.
- Orlando, Fla.
- Dallas
- Norfolk, Va.
- Kansas City, Mo.
- Nashville, Tenn.
- Miami
- Phoenix
- Columbus, Ohio
Looking Ahead
Retail real estate in Sunbelt metros continues to outperform the broader US market. With developers maintaining supply discipline and consumers continuing to migrate southward, these markets are expected to remain top performers in the near term. As CoStar’s Brandon Svec notes, “Demographics and disciplined development continue to drive the story.”
