U.S. Retail Asking Rent Growth Moderates in the First Quarter of 2026

U.S. retail asking rent growth moderated in the first quarter of 2026, according to data from CoStar , the leading global provider of online real estate marketplaces, information and analytics in the property markets.

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Rent growth has slowed to lowest level in over a decade

In Q1 2026, U.S. retail asking rent growth slowed to +1.9% year over year, extending a downward trend that began in 2024.

“While U.S. retail fundamentals remain healthy, a slight loosening in vacancy alongside moderating tenant sales growth has reduced landlords’ ability to push rents at the pace seen immediately after the pandemic,” said Brandon Svec, national director of retail analytics at CoStar Group. “This slowdown is less of a sign of weakening demand than a function of normalization. As sales growth has leveled out across most retail segments, occupancy costs have risen back to pre-pandemic norms. With rent-to-sales ratios now more closely aligned with historical averages, and operating costs and interest rates remaining elevated, tenants have become more resistant to additional rent pressure, particularly in discretionary categories. As a result, asking rent growth has moderated even as leasing activity and occupancy remain relatively strong.”

The asking rent growth deceleration is evident across most major markets, though performance continues to vary by region. Several Sun Belt markets that led rent growth earlier in the cycle, including Phoenix, Orlando, Atlanta, and Charlotte, still posted solid year-over-year gains at the end of the first quarter, but growth rates have clearly slowed as asking rents reset to higher plateaus.

In contrast, Midwestern markets are showing renewed momentum. Minneapolis posted the strongest year-over-year rent gains nationally, at 6.9%, with Columbus, Milwaukee, Cincinnati, Kansas City, and St. Louis also ranking among the better‑performing markets.

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For more information about the company and its products and services, please visit costargroup.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 139 million average monthly unique visitors in the fourth quarter of 2025, 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 .

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