Retail entered 2026 with ongoing resilience, with shopping centers leading the way for activity across the sector. Physical shopping centers have maintained their status as essential CRE assets. So far this year, shopping centers noted increased competition for limited inventory, an uptick in valuations, and a shift in investor focus toward high-performing, service-oriented assets. 

 

Market Defined by Low Supply and Demand

Although shopping centers are recording robust performance, these properties still note an ongoing struggle with a supply-demand imbalance. After an influx of capital last year, with around $4.5 billion in sales, acquisitions have outpaced available listings. In 2025, more than 1,200 centers were sold, leaving a decreased pipeline of large-scale properties on the market. 

 

The lack of supply has pushed average pricing to around $142 per square foot, a double-digit rise over long-term averages. This growth is fueled by both lower financing costs and rental upside. Easing capital prices have made large-scale acquisitions more attractive. At the same time, landlords are capitalizing on opportunities while leases signed before 2020 expire, allowing for rent adjustments of 20% to 40% for some assets.

 

Anchor Strength and Record-Breaking Deals

Grocery-anchored centers remain consistently sought after for their stability, noting an increase in transactions so far in 2026. One of the most notable shopping center sales so far occurred in Orange County, with Seacliff Village in Huntington Beach trading for $151 million. This fully occupied property underscores the premium investors place on anchors. 

 

Another of the most recent notable deals occurred in the Mid-Atlantic. In Virginia Beach, Landstown Commons sold for $102 million. This deal demonstrates that national shopping centers with diverse tenant mixes remain highly resilient.

 

Key Sales to Track

• Seacliff Village: Huntington Beach, CA. Sale price: $151.0M
• Landstown Commons: Virginia Beach, VA. Sale price: $102.0M
• Bowie Town Center: Bowie, MD. Sale price: $50.0M
• Village of Mulberry Park: Dacula, GA. Sale price: $13.4M

 

Navigating the Rest of 2026

While the big-box and grocery sectors are thriving, the industry continues to track smaller tenants. Local businesses occupy around 40% of total shopping center space. While these tenants often pay higher rents, they are more vulnerable to changes in consumer spending. 

 

Forecasts anticipate that cap rates will continue to tighten through the end of the year. In order to reach full growth potential in 2026, landlords must balance record rents with the stability of their smaller retail tenants to avoid rising costs and decreased demand.