ICSC Las Vegas preview: CoStar’s 2026 U.S. retail update
ARLINGTON, Va. – 17 May 2026 – The U.S. retail sector’s available space and investable inventory continues to remain scarce into 2026, according to data from CoStar, the leading global provider of online real estate marketplaces, information and analytics in the property markets.
While national net absorption has fallen in three of the last five quarters, availability has held flat and remains about 15% below its prior 10-year average. Minimal retail space coming onto the market has allowed the sector to absorb pockets of softer demand without becoming oversupplied.
“The pipeline of new supply remains very thin, and most development activity continues to skew toward freestanding build-to-suits rather than multi-tenant product.,” said Brandon Svec, national director of retail analytics at CoStar Group. "Construction costs across much of the country are pushing into a range where developers often need blended rents north of $30-$35 per SF, and very few markets can justify building spec strip and shopping center space at scale. Blended national market rents sit closer to the mid-$20s per SF on average, which leaves a significant gap between what the market is currently paying and what new product costs to deliver. Until that gap narrows, low available inventory is likely not just a story, but rather the operating environment.”
Rent and pricing dynamics are largely flowing from constrained space markets. Lease spreads remain elevated, in large part because tenants are still paying up to secure the few high-quality options that fit their trade area, parking ratio, and signage needs. Rent growth has moderated from recent highs, but the market is still benefiting from a multi-year period of growth post-pandemic.
Brandon Svec will present at ICSC Las Vegas on Tuesday, 19 May from 2:30-3:00 p.m. PT at the LVCC Central Hall Show Floor Theater. CoStar will also have a booth (#2641I) in Central Hall.
For more information about the company and its products and services, please visit costargroup.com.
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Haley Luther
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(216) 278-0627
hluther@costar.com
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted over 131 million average monthly unique visitors in the first quarter of 2026, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
