The retail sector’s record-low availability rate will buffer it from tariff headwinds, a CBRE report said. Although the Trump administration has paused sweeping reciprocal tariffs on most countries days after implementing them, questions still remain around the risk to retail real estate as companies weigh how much of the increased import duties they would absorb or pass on to customers.

Higher costs and uncertainty could eventually cause leases to be delayed or canceled as retailers reassess expansion plans and focus on operational efficiency. However, the sector’s 4.8% national availability rate provides some cushion against the potential negative impacts of tariffs. Slower new development driven by higher construction costs could also help keep this category low and support long-term market fundamentals, said CBRE.

Apparel is the consumer product category most likely to be impacted by higher tariffs, as nearly all of the inventory sold in the United States is sourced from other countries, according to the American Apparel & Footwear Association. About half of apparel imports come to the United States from China and Vietnam.

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Kristen Smithberg

Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.