What retail real estate will look like in 2026

The turn of the new year means that, metaphorically, as one door closes, another opens, and the same is literally true on the daily in the world of retail real estate.

From Party City to Walgreens to Kohl’s, a number of retailers spent last year closing some—or all—of their doors, while others like Trader Joe’s and Barnes & Noble continued opening new ones. And those changes are happening quickly: Last year, 40% of retail space leased was absorbed in five months (that’s a good thing), with median lease-up time dropping below seven months for the first time ever, according to a recent report from real estate company Colliers.

With last year’s flurry of bankruptcy announcements now slowing, many new leasing deals mean many store openings are set to come in 2026, per Colliers. As retailers try different formats and expanding footprints, and international retailers make a play for the US market, there’s actually high demand for space, Anjee Solanki, national director of Retail Services and Practice Groups at Colliers, told Retail Brew. She shared the trends and keys to success for the year ahead.

Vibe check: To set the stage for sentiment entering the new year, there isn’t a ton of optimism from retailers or consumers. Compared to 2025, 48% of retailers expect this year’s sales to be worse, while 21.4% anticipate improvement, per Colliers. And 55.4% of consumers are pessimistic about the new year, though only 34.4% said they aim to spend less this year.

The consumer is still spending, just differently, Solanki noted. Beauty, footwear, and apparel are categories with strong momentum. Apparel in particular has been performing well within the outlet sector, she noted, due to deep discounting. The narrative of mid-tier retailers stuck in the middle of a “polarized market”—with budget-conscious consumers opting for value and higher income shoppers turning to luxury—will continue into 2026, Colliers predicted.

So retailers are certainly being careful—but not sitting still.

“Not everyone’s going to say, ‘I need 100 stores next year,’” Solanki said. “They’re definitely being cautious, because these are 10-year leases. You don’t want to lock down 10-year leases for 50 stores and then go, ‘Oh, now macroeconomics are really hurting us from all these different cost elements,’ right? So retailers are definitely being cautious, but they’re still expanding.”

Who’s growing: Barnes & Noble, Trader Joe’s, and Sprouts were among retail foot traffic standouts in 2025, according to Colliers, largely because of their “experience-driven” presence. For Barnes & Noble, which will continue to expand this year, figuring out the right size for its stores has been key, as well as leaning into in-store activations, Solanki said.

Experiential stores will continue to be important in 2026. Solanki pointed to brands like cowboy boot maker Tecovas cashing in on the western trend by opening its 50th location in New York City last year.

And Colliers is seeing a number of European food and beverage retailers and Asian beauty brands entering the US retail market, Solanki noted. Asian brands are looking to capitalize on K-beauty’s second wave of popularity in 2025. And while K-beauty itself is likely a lasting trend, Solanki warned the retail market could become oversaturated, particularly as major retailers like Sephora, Amazon, and Ulta Beauty (which is expanding this year, too) already sell many of those products.

Inside the stores: Retailers will be focused on “rebalancing pricing” this year, Solanki said, and she expects more retailers to lean into “visibility” and “transparency” in marketing value to consumers, whether that’s on tags or storytelling on social media. Private labels will continue to boom at retailers this year, too, she predicted.

And again, it’s all about new beginnings—brands that are constantly changing their product assortment will be some of the most bullish with their retail footprints. Solanki pointed to Miniso, a Chinese retailer of toys, cosmetics, and IP-related goods that operates stores in New York City, Florida, and California.

“When you have a brand like that, or a retailer like that that has the ability to constantly change, they can afford to have many stores because their product is always changing and it feels fresh and new,” Solanki said.