The United States is ‘under-retailed’ by 200 million square feet, or the equivalent of five-and-a-half Central Parks in New York City. This is according to CBRE’s latest analysis of the retail market, which examines post-pandemic shifts in shopper demographics and their evolving needs.

From the 1980s into the early 2000s, the country overdeveloped retail space, but development has sharply declined over the past 15 years. Annual retail construction completions were down by more than 80% between 2021 and 2023 compared with the mid-2000s, the report said.

“With ongoing population growth in many markets, this has resulted in a significant undersupply of retail space today," said James Breeze, vice president of global retail research for CBRE. "The retail sector is challenged not only by a shortfall in new development but also a need for new formats that complement online shopping and accommodate product returns and the shopping preferences of younger generations.”