Leasing Trends, Tax Changes, & What's Next

The second half of 2025 is well underway, and there are some trends emerging that are shaping the retail landscape for the rest of the year. The August Retail Investment update covers the following:

• Recent changes implemented within the last 30 days have increased the estate tax rates in Washington
• 100% first-year bonus depreciation is back, leading to increased demand for assets like gas stations, automotive properties, and net leased retail
• Medium and big-box spaces are experiencing rising vacancy rates, primarily driven by bankruptcies of three major tenants
• Buyers are preferring newer construction over older  properties, leading to a 50-100 basis point cap rate separation in  multi-tenant assets 

Plus, we share what we are seeing on the ground, and what opportunities are emerging for the second half of the year. If you have any questions, would like to talk further, or want to discuss your property, please do not hesitate to reach out to our team at anytime.