Why institutional investors are returning to retail 'in a very big way'

Key Points More stores closed or downsized than opened or expanded during the first quarter, according to a report from JLL, but vacancies are still low at just 4.4%. Retail offers much better yields than other commercial real estate sectors. Investment transaction volumes reached more than $15 billion during the first quarter, an increase of 5% compared with Q1 2025, according to the report. A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox. The U.S. retail market started 2026 on relatively healthy footing, and investors, especially institutional investors, are starting to pay more attention. Retail appears to be moving from a story of recovery to one of scarcity. More stores closed or downsized than opened or expanded during the first quarter, according to a report from JLL, but vacancies are still low at just 4.4%. That is because there has been very little new construction in the sector. Retail also offers much better yields than other commercial real estate sectors. And that's why investors are returning, with transaction volumes reaching over $15 billion during the first quarter, an increase of 5% compared with Q1 2025, according to the report. …