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Retail Real Estate Outperforms as Vacancy Rate Sits Below 5%

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November 14, 2025

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Hessam Nadji, CEO of Marcus & Millichap, discusses retail real estate resurgence and investor optimism heading into 2026.

Mortgage rates in the US increased for a second week, adding to costs for homebuyers already facing a precarious economy.

The average for 30-year, fixed loans rose slightly to 6.24%, up from 6.22% last week, Freddie Mac said in a statement Thursday.

Homebuyers have been reluctant to jump into the market, even with rates now well below year-ago levels. Signs of economic weakness are leading to more caution, as cost-of-living pressures continue to squeeze budgets.

Pending home sales fell 0.3% from a year earlier during the four weeks ending Nov. 9, the first drop in four months, according to a report from Redfin. Listings are lingering on the market, taking a median of 49 days to go under contract.

That’s the longest span for this time of year since 2019, according to the brokerage.

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