Real Estate
Home›Real Estate›Commercial›Luxury retail leasing slows as brands rethink store fo…
Luxury retail leasing slows as brands rethink store footprints
JLL data show leasing for luxury retail rose above 500,000 square feet in 2025, but fell to 123,334 square feet leased in the first half of 2026.
Luxury retail leasing activity is showing signs of cooling as brands adjust how they deploy space, according to ConnectCRE. The publication cites JLL data showing luxury retail leasing totaled more than 500,000 square feet in 2025, with 277,000 square feet completed in the first half of the year.
ConnectCRE reports that during the first half of 2026, luxury retail spacing declined, with 123,334 square feet leased, based on JLL figures. It frames the shift as part of brands moving away from certain corridors and centers.
JLL said that corridors and centers able to meet specific format requirements are more likely to win flagship deals. Those that cannot accommodate the specification, JLL added, will instead compete for compact formats.