Single-Tenant Net-Lease Retail

Vacancy sparse across food-related categories. Consumers’ prioritization of necessity goods, dining and experiences remained intact during 2024, supporting a moderate shift in demand for single-tenant retail space. Entering 2025, segment vacancy sat at 4.5 percent, which is 100 basis points below the sector’s long-term average. This metric, however, is skewed by recent drug stores closures and department store dark space, as vacancy in other single-tenant categories — convenience stores, fast food, restaurants and supermarkets — ranged from 1.0 percent to 3.7 percent at the onset of this year. Despite these scant rates, net absorption across each of these segments eclipsed the 2 million-square-foot mark last year, reflecting encouraging leasing and renewal activity.