While retail remains a standout performer across the country, the segment is navigating a restructuring period. The move is driven by the mass store closures of several brands, such as Bed Bath & Beyond, Party City, and JOANN. 

 

The influx of closures, which left behind vacant spaces, served as a necessary market correction for retail. Many of the shuttered chains struggled with less foot traffic and the inability to keep up with larger tenants. The fallout of these stores allows remaining tenants to operate with a stronger foundation. 

 

Retail has also maintained strong performance levels, together with a low national vacancy rate of 4.3%. This resilience is largely attributable to the rise of discount and value-focused retailers, which are actively strengthening the broader market structure.

 

Tampa Focus

The influx of store closures across Tampa has allowed retailers to capitalize on an influx of availabilities. While the metro’s availability rate has hovered around 4% for the past three years, store closures have increased availability in 2025. Yet, the metro’s strong fundamentals continue to support asking rents, attracting discount retailers to Tampa. 

 

Across the metro, Tampa noted asking rents rising by about 5% year-over-year to a market average of $27.26 per square foot. Discount retailers have increasingly moved to Tampa with these positive levels in place. The most recent movement for these tenants includes leases by HomeGoods and Nordstrom Rack in Q3 2025. As Tampa is forecast to record an annual rent growth rate of 3% to 4%, discount tenants will continue to be attracted to the metro.

 

Discount Tenant Growth

The most direct contribution of discount retailers to the segment’s health is their role as economic stabilizers for the consumer. Against a backdrop of economic strain, characterized by elevated consumer debt, many Americans have increasingly sought after lower-priced goods. Discretionary spending has contracted, forcing a fundamental shift in consumer behavior toward value. 

 

Tenants like Dollar General, T.J. Maxx, Burlington, and Walmart thrive in this environment because their business goals align with consumers’ behavior of seeking high quality at the lowest possible cost. They provide an essential service by allowing consumers to stretch their budgets, acting as a crucial safety net that sustains purchasing activity despite broader economic pressure.

 

By capitalizing on economic conditions, discount tenants channel consumer demand that has been pushed by high costs and debt. Their financial ability helps aid the market by replacing weaker tenants, leading to a structure that has less risk. The strong performance of discount chains is an essential factor that is steering the retail sector toward a balanced future.