Freestanding retail real estate in the United States had the highest occupancy rate in the fourth quarter of 2024, at **** percent. This was *** percent higher than the average for the retail real estate sector. Malls, life centers and outlet centers had the highest vacancy, with **** percent of space occupied.

Graph and download economic data for Rental Vacancy Rate in the United States (RRVRUSQ156N) from Q1 1956 to Q2 2025 about vacancy, rent, rate, and USA.

The vacancy rates of shopping center real estate in the United States varied between different cities. Nashville, TN topped the list with the lowest vacancy rate of *** percent in the final quarter of 2024. At the same time, cities such as Montgomery, AL, Rochester, NY, New Haven, CT, saw vacancy rates above **** percent. Across different types of retail real estate, freestanding retail had the highest occupancy rate in 2024.

Vacancy rates across the office real estate sector in the U.S. increased in the second quarter of 2025. This was in line with a general trend of rising vacancies that started in 2020 during the COVID-19 pandemic. In the second quarter of 2025, about **** percent of office space across the country was vacant. In some major U.S. markets, vacancies exceeded ***percent. With a considerable part of the workforce working from home or following a hybrid working model, businesses are cautious when it comes to upscaling or renewing leases. Workplaces may never be the same again The COVID-19 pandemic has changed the way that companies operate, with working from home becoming the new normal for many U.S. employees. The function of the office has evolved from the primary workplace to a space where employees collaborate, exchange ideas, and socialize. That has shifted occupiers’ attention toward spaces with modern designs that can accommodate the office of the future. Many businesses used the pandemic time to revisit their office guidelines, remodel, or do a full or partial fit-out. With so much focus on quality, older buildings with poorer design or energy performance are likely to suffer lower demand, resulting in a two-speed market. What do higher vacancy rates mean for investors? Simply put, if landlords do not have tenants, their income stream is disrupted, and they cannot service their debts. April 2023 data shows that several U.S. metros had a significantly high share of distressed office real estate debt. In Charlotte-Gastonia-Concord, NC-SC, more than one-third of the commercial mortgage-backed securities for offices were delinquent, in special servicing, or a combination of both. As of March 2025, offices had the highest delinquency rate in the commercial property sector.

The average vacancy rate for shopping centers in Texas has declined since 2020, after rising under the effects of the COVID-19 pandemic. El Paso and Austin had the lowest vacancy rates at *** percent and *** percent in the first quarter of 2024. This was lower than both the national average and the average for the South region.

Vacancy rates of shopping center real estate increased across all regions in the United States at the beginning of 2021, but declined as the economy started to recover from the impacts of the coronavirus pandemic. As of the first quarter of 2025, the South region had the lowest average vacancy rate at *** percent. Meanwhile, the average for the country stood at *** percent. Nashville, TN, Raleigh/Durham, NC, and Sarasota, FL, were the markets with the lowest vacancy rates at under ***** percent.

In the United States, vacancy rates across the retail sector hit an average of 4.4 percent in the second quarter of 2022. Physical retail locations, such as shopping malls and free-standing stores, suffered a particularly heavy blow from the COVID-19 pandemic.

Brick-and-mortar retailers hit the hardest Vacancy rates have increased across a number of sectors in the U.S. during 2020, but none more so than the retail industry. Lockdown restrictions implemented across the country to contain the spread of the coronavirus led to steep declines in physical retail sector traffic. Retailers are once again open for business, but many stores are operating at a much lower capacity due to new health and safety guidelines. However, the reopening of the economy has come too late for some, and there have been widespread retail store closures.

Greater demand for industrial real estate Many vacant retail buildings could soon be repurposed as industrial properties. Demand for warehousing and flexible spaces has remained relatively high throughout the COVID-19 pandemic, and one reason for this is the sales growth of eCommerce platforms. Industrial properties are ideal for online startups that require extra storage and distribution space. Industrial vacancy rates stood at an average of 4.1 percent in the first quarter of 2022, which was lower than several other sectors.

The volume of retail real estate sold in the United States in 2020 varied slightly between shopping centers and regular shops. While the total volume of retail real estate amounted to **** billion U.S. dollars, **** billion U.S. dollars of this number came from shopping centers. The other **** billion U.S. dollars came from the sale of regular shops.

In the second quarter of 2020, retail vacancy rates in the United States rose drastically from * percent to ** percent, a change that can be explained by the effects of the COVID-19 pandemic.

The leading retail real estate markets by number of property acquisitions in the United States in 2020 encompassed several large cities throughout the country. Los Angeles took the lead with *** property acquisitions, a large step ahead of Chicago and Dallas, who share a second place with *** property acquisitions each.

In the second quarter of 2020, retail vacancy rates in the United States rose drastically from * percent to ** percent, a change that can be explained by the effects of the COVID-19 pandemic.

Malls had the most expensive rental space among the different types of retail real estate in the United States in 2023. As of the fourth quarter of the year, the average rent in malls was ***** U.S. dollars per square foot, compared to ***** U.S. dollars for all retail. General retail space, defined as single-tenant freestanding commercial buildings with parking, such as drugstores, grocery stores, and street front urban retail stores, had some of the lowest vacancy rates.