CoStar: US retail construction pipeline holds near post-pandemic lows at 72.1 million sq ft in Q2 2026
CSGP•US retail construction pipeline remains near post-pandemic lows
CoStar analysis showed US retail space under construction at 72.1 million square feet in Q2 2026, up 0.9% y/y.
The pipeline stayed below the 10-year average of about 78.9 million square feet, keeping activity near post-pandemic lows.
Higher land prices, construction costs and interest rates lifted required rents above market levels, limiting new projects.
Fifteen markets held nearly 47% of the pipeline; Dallas, Houston and Austin totaled 21%, or 15 million square feet.
