Small cities that have benefitted from population growth during the pandemic are also poised for rapid retail recovery. These smaller metros include Nashville, Austin and Charlotte, and they are seeing increased retail leasing demand from both national and mom-and-pop tenants.

It isn't only population growth driving the demand for retail. Major companies are also expanding in the Southeast. Amazon and Oracle have announced plans to open offices in Nashville and Austin, and Apple is expanding in Raleigh. "These smaller markets are attractive to smaller companies. Employees can have a shorter commute and can own some land or a house in case something like the pandemic happens again and they are working from home for six months or a year," Jeff Pape, managing director at GBT Realty, tells GlobeSt.com.

The population and job growth stabilized smaller metros through the pandemic, so few saw the retail tumble that occurred in major metros. "In Nashville, [for example] we didn't seem to have a slow down, especially on the development side, as what we saw in some of the bigger markets like New York or Chicago," says Pape. "We continued to have an active 2020 for development, and I think that is part of the strength of the market as well."