Market Report
Boston Retail Market Report
3Q 2026
Nationally Low Vacancy Rate Poised
to Continue as Labor Market Improves
Strong retail sales help contain vacancy. Boston’s retail market remains one of the tightest in the nation in 2026 despite employment headwinds and weak retail space absorption since early 2025. In the 12 months ended in June, retail sales increased 5.0 percent, placing Boston among the top five major U.S. metros and making it the only market outside the Sun Belt to achieve that status. The metro’s comparatively affluent resident base, with a median household income of over $125,000, continues to support strong consumer demand despite job market headwinds. As a result, retail vacancy should remain below 4 percent through year-end, a threshold not exceeded since 2013.
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