Big retailers are moving into empty buildings again. Here’s why

Despite consumer jitters and tariff pressures, retail landlords are heading into 2026 on steadier ground than expected, The Wall Street Journal writes. 

Retailers absorbed 5.5 million more square feet than they gave up in the third quarter, reversing early-year declines tied to bankruptcies and spending pullbacks. Appetite for vacant space is strongest among discounters like Dollar General, Aldi and Burlington, while construction remains historically limited, keeping vacancies tight at just 4.3%. CoStar expects a temporary hiccup this year—retailers are still poised to vacate more space than they absorb in 2025—but forecasts net positive demand again by 2026.

Expansions by operators such as Tractor Supply—planning 90 new stores this year and 100 annually by 2026—are helping fill voids left by chains like Big Lots, Rite Aid and Joann. Landlords are also landing better tenants and higher rents in some redevelopments. Still, rising costs, tariffs and ongoing e-commerce growth could pressure smaller retailers and rent gains next year.

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