Smaller and Service-Oriented Retailers on Rise, Study Predicts

A trio of not-so-obvious trends are expected to help drive the retail market in the coming year, according to Marcus & Millichap’s just-released 2026 Retail Investment Forecast. They are:

• The number of smaller tenants is likely to expand. A record number of high-propensity business applications — those highly likely to become businesses with payroll— were filed last year. If traditional retail and service-related company formations increase in 2026, leasing activity could improve across strip centers and other properties with smaller storefronts suitable for new businesses.
• Healthcare construction to create nearby retail. At least 15 health systems unveiled or advanced hospital projects worth $1 billion or more last year. These and other expansions underway will support healthcare hiring across many major metros, which will be a boon for retail foot traffic in areas near new patient towers and campuses.
• “Insulated” service retailers – those less exposed to tariff- and e-commerce-driven pressures – may drive a larger share of leasing this year. Health providers, specialists, animal hospitals and tutoring operations will likely continue to aid shopping center owners, with these tenants having inked 1,000-plus new leases last year.

Click here to register to gain access to the full Marcus & Millichap report.