Insights sourced from the Alabama Center for Real Estate (ACRE) Conference, featuring leading retail brokerage and advisory professionals.
Alabama Retail Real Estate Is Shifting Heading Into 2026
Alabama’s retail real estate market is shifting heading into 2026. Insights from the Alabama Center for Real Estate (ACRE) Conference highlight how store closures, expanding brands, and changing consumer behavior are reshaping retail opportunities across markets like Birmingham, Mobile, and Tuscaloosa. Here’s what commercial real estate decision-makers need to know.
The Retail Narrative Is Changing—Fast
At this year’s Alabama Center for Real Estate (ACRE) Conference, the Retail Panel featuring Gregg Hess (Partner, The Shopping Center Group), Mary Beyer Lell (Principal, Crawford Square Real Estate Advisors), and Bryan Holt, CCIM, CLS (Principal, Southpace Properties), reinforced a key theme:
Retail isn’t declining—it’s recalibrating.
The headlines may highlight closures, but the underlying story is far more strategic—and full of opportunity.
Closures Are Creating Opportunity
2025 brought a wave of national retail closures:
- Conn’s
- JoAnn Fabrics
- Rite Aid
- Bargain Hunt
- Forever 21
- Winn-Dixie
- Party City
- Big Lots
- AMC Theatres
- PopShelf
These closures are releasing inventory back into the market across Alabama and creating new leasing and investment opportunities, particularly in well-located retail corridors.
Comeback Brands Signal Demand
- Chili’s
- Abercrombie & Fitch
- Target
- Home Depot
- Barnes & Noble
Winning brands are leaning into experience, value, and consumer behavior shifts.
Who’s Expanding
- TJ Maxx, Marshalls, HomeGoods, Burlington, Five Below
- Valvoline, Jiffy Lube, Circle K, RaceTrac
- OneLife Fitness, Crunch Fitness, Planet Fitness
- Chick-fil-A, Chipotle, Raising Cane’s
- Chase, Fifth Third Bank
Many of these expanding tenants are actively targeting high-growth areas and secondary markets across Alabama, where demand remains strong and competition is more limited.
Key Retail Trends in Alabama
- Low unemployment (~2.7% Alabama)
- Small shop rents exceeding $40 PSF
- Tenant improvement allowances returning
- Rising NNN expenses
- Experience-driven retail ('shoppertainment')
2026 Retail Outlook
- More retail bankruptcies (creating opportunity)
- Casual dining contraction
- Debt maturity challenges
- Growth in secondary markets
- Value over brand loyalty
What This Means for Property Owners, Tenants, and Investors
Property Owners: Repositioning opportunities are increasing.
Tenants: More availability, but higher costs.
Investors: Watch for distressed and value-add deals.
Final Thoughts: Retail Is Evolving, Not Disappearing
Retail is not disappearing—it’s evolving. This is a strategic window for those ready to act.
FAQ: Alabama Retail Real Estate Trends
What is happening to retail real estate in Alabama?
Retail in Alabama is not declining but shifting, with store closures creating new opportunities and expanding brands targeting high-performing locations.
Are retail vacancies increasing in 2025–2026?
Yes, some vacancies are increasing due to national closures, but much of this space is being backfilled by growing retailers and service-based users.
Which retail tenants are expanding in Alabama?
Discount retailers, quick-service restaurants, auto service providers, and fitness concepts are among the most active tenants expanding across Alabama.
Is now a good time to invest in retail CRE?
For investors focused on value-add and repositioning opportunities, current market conditions are creating a strong entry window.
Looking for Retail Opportunities in Alabama?
Looking for retail space or investment opportunities in Alabama? Explore available listings or connect with our team to identify value-add opportunities in Birmingham, Mobile, Tuscaloosa, and other high-growth markets.
