Publicly traded retail REITs reported strong earnings in 4Qtr2024

Publicly traded REITs Simon Property Group, Kimco Realty Corporation, Regency Centers, Brixmor Property Group and Federal Realty Investment Trust all reported leasing activity at or near record levels that delivered high occupancy rates, rent growth and higher FFO projections going forward.

With retail occupancy rates up, demand for retail space is only improving. Retail vacancy was at a near record low of 5.4% during 4Qtr2024, according to Cushman & Wakefield. Nationwide, the U.S. experienced its highest net absorption of the year during Q4 at about 1.4M sq. ft. Average rent growth also rose around the country during Q4, hitting $24.59 per sq. ft., or 2.8% growth over the same period in 2023.

Headwinds in January and February 2025 may slow down retail somewhat, with things like the California wildfires, unseasonable cold weather throughout the country, a rise of retail tenant bankruptcies and new tenant credit risks. Specific reports from various REITs covering the fourth quarter results are in linked story.

Read more: Record Q4 Leasing Underpins Retail Optimism As REITs Predict A Rollicking 2025 (Bisnow)