Charlotte and Raleigh Secure Top Spots in U.S. Retail Rankings

Marcus & Millichap’s 2026 forecast names Charlotte and Raleigh as the leading retail investment markets in the U.S. Learn about the low vacancy rates and big-box demand.

By: AXL Media

Published: Mar 21, 2026, 6:58 AM EDT

Source: Bisnow

Charlotte’s Big-Box Momentum and Low Vacancy

Charlotte’s ascent to the top spot was driven by a surge in net absorption during the latter half of 2025. The market currently maintains a 3.5% vacancy rate, which is 40 basis points lower than its 10-year average. Growth has been largely attributed to large-format, single-tenant move-ins from major supermarket chains including Publix, Harris Teeter, and Lowes Foods. Additionally, the "soft goods" discount category—represented by retailers like T.J. Maxx, Marshalls, and Burlington—has become a primary engine for occupying vacant anchor spaces, reflecting a sustained consumer shift toward value-based shopping.

Raleigh-Durham’s Small-Shop Resilience

While Raleigh-Durham ranked second, its market fundamentals differed slightly from its neighbor to the south. Despite the departure of several national big-box retailers, the Raleigh-Durham area maintained a 3.0% vacancy rate—the second-lowest in the nation. This stability was primarily supported by high demand for "small-shop" spaces and local service providers. Although a wave of completed construction projects caused a slight uptick in overall vacancy, the region’s robust household formation continues to absorb new supply faster than most other U.S. secondary markets.

Retail as the New Preferred Asset Class

As the office sector continues to grapple with high vacancy and the multifamily market works through a glut of oversupply, retail has emerged as the most coveted asset class for institutional investors in the Carolinas. Andrew Margulies of Marcus & Millichap noted that retail centers are currently seeing cap rate compression and upward pricing pressure. From a financing perspective, retail is viewed as a safer bet; if a tenant is lost, owners often have multiple backup options ready to lease the space, a stark contrast to the challenges currently facing the suburban office market.