The city of Charlotte has maintained a strong retail market, with smaller spaces proving to be especially competitive within the sector over the last year.

Charlotte ranked first among the top 43 U.S. retail markets with at least 100M SF of inventory in asking rent growth and overall investment performance, according to a recent CoStar report.

Brandon Svec, national director of retail analytics at CoStar Group, noted that several fundamentals combined in Charlotte’s retail rise.

“After coming in sixth place last year, Charlotte’s rise to the top was predicated on demographic tailwinds, a diversified economy, and a disciplined supply pipeline,” Svec said in a statement.

Retail rent growth in Charlotte averaged 7.4% last year, according to CoStar. Over the past 10 years, the city’s retail rents have increased 57%, compared to just 34% nationwide. 

Retail vacancy in Charlotte was just 2.9% in Q3 2025, marking three consecutive years below 3%, according to an Oct. 2025 Colliers report. 

The rumors of retail’s demise in the city turned out to be greatly exaggerated, said Clay Grubb, CEO of Grubb Properties.

“Retail had 10 brutal years, with everybody saying retail was dead,” Grubb said, speaking at the Bisnow Charlotte Commercial Real Estate Market Kickoff on Jan. 15. “But ever since coming out of Covid, the consumer has been very strong, and so the retail sector has been very strong.”

Smaller spaces were especially competitive for retail tenants, with vacancy in buildings under 10K SF at only 1.77%, Colliers reported. 

Converting the first floors of office buildings into spaces for retail tenants has proven to be a successful strategy in Charlotte, Grubb noted.

“They’re paying real rent and changing the images of office buildings, making the retail sector much healthier than we’ve seen in 15 years,” he said at the Bisnow event last week at the Union at West Station.

Macerich published its detailed Path-Forward plan to simplify the business, improve operational performance and reduce leverage under the leadership of new president and CEO Jackson Hsieh. The publication follows the Santa Monica-based retail REIT’s acquisition of the remaining 40% interest in Arrowhead Towne Center (metro Phoenix) and South Plains Mall (Lubbock, TX) for $36.5 million earlier this month.

The company said its Path-Forward plan is designed to:

• Deleverage the capital structure to a low-to-mid 6x range over the next three to four years.
• Invest in and fortify key assets in the portfolio.
• Proactively consolidate selected joint venture assets that are core to the overall strategy.
• Deliver clean FFO/share launch point of ~$1.80/share over the next three to four years.
• Improve various internal processes that are being evaluated and realigned to achieve outstanding operational results.
• Position the company to take an offensive stance on acquisitions, reinvestment and selected development.

“I am excited to chart a new direction for Macerich and lead the company to elevated performance as we launch a simple, executable plan that forwards our mission to add long-term value for shareholders, partners, and customers,” said Hsieh. “I am very optimistic and confident about our company’s future as we undertake this well-crafted path forward.”

Pictured: Macerich’s Tysons Corner Center in McLean, VA.