Retail REITs are reporting stable to slightly compressing cap rates

Major public retail REITs are reporting stable to slightly compressing acquisition cap rates—averaging 6.0% to 6.8% for open-air, grocery-anchored shopping centers (e.g., Brixmor Property Group and Kimco Realty Corporation) and 6.8% to 7.6% for single-tenant net-lease properties (e.g., Agree Realty Corporation and Realty Income Corporation)—as tight retail supply and robust rent growth keep buyer demand strong.

According to CBRE’s H1 2026 U.S. cap rate survey, which outlines investor sentiment, pricing trends and capitalization rates across commercial real estate asset classes, cap rates across major CRE sectors are expected to compress slightly by 5 to 15 basis points as market liquidity returns, pricing stabilizes and interest rate volatility moderates.

Grocery-anchored and other neighborhood and community open-air centers are experiencing the strongest pricing resilience and lowest cap rates within retail. Investor demand remains high due to consistent foot traffic, necessity-based tenants and near-historic low vacancy rates.

Many malls and older power centers are suffering from high CapEx requirements and slower re-tenanting leading investors to demand higher yields, keeping cap rates elevated compared to open-air neighborhood centers.

Total returns in 2026 are primarily driven by rising NOI rather than sharp capital appreciation. High-quality assets with stable credit tenants are benefiting from stronger pricing power.

Construction costs and tight financing continue to limit new retail deliveries, keeping national availability near historic lows. This structural lack of new supply coupled with increase demand for existing space underpins retail valuations and prevents cap rate expansion despite broader consumer spending caution.

Read more: U.S. Cap Rate Survey H1 2026 (CBRE)