Is Retail Property Still a Good Investment in the E-Commerce Era?
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Retail real estate has faced intense scrutiny in recent years due to the rapid rise of e-commerce. Yet in 2025, retail property continues to show resilience and profitability—especially for investors who understand the evolving landscape.
Best-Performing Retail Formats
1. Retail Isn’t Dead—It’s Evolving
The narrative of a “retail apocalypse” has faded. Instead, retail is adapting to complement online shopping. Experiential retail, click-and-collect models, and hybrid storefronts are thriving. Consumers still value in-person interaction, especially for fashion, fitness, and food.
2. Grocery-Anchored and Neighborhood Centers Are Strong Performers
Retail centers anchored by grocery stores and essential services have seen consistent foot traffic and low vacancy rates. These properties are less vulnerable to e-commerce disruption and offer stable, long-term tenants.
3. Mixed-Use Developments Drive Foot Traffic
Retail spaces integrated into mixed-use developments—combining residential, office, and entertainment—are gaining popularity. These environments create built-in customer bases and diversified income streams, making them attractive to investors.
4. Suburban Retail Is on the Rise
As remote work and population shifts continue, suburban retail centers are seeing increased demand. Smaller footprints, flexible leases, and proximity to residential areas make these properties ideal for service-oriented tenants.
5. Investor Confidence Is Rebounding
Retail investment sales volumes are rising, and cap rates are stabilizing. High-quality retail assets—especially those with long-term leases and essential tenants—are commanding strong prices and attracting investor interest.
Insurance Considerations for Retail Properties
Retail properties face unique risks—from customer liability to inventory loss and property damage. Wexford Insurance offers customized commercial property insurance for retail spaces, including strip malls, standalone stores, and mixed-use developments.
Our coverage includes:
Business interruption
Equipment and inventory coverage
Whether you're leasing to national chains or local businesses, Wexford Insurance ensures your investment is protected.
Final Thoughts
Retail property remains a viable and profitable investment in 2025—especially when aligned with consumer trends and supported by strong insurance coverage. From grocery-anchored centers to experiential retail, opportunities abound for savvy investors.
Contact Wexford Insurance today - your trusted partner for retail property insurance.
FAQs
Q1: What retail formats perform best in the e-commerce era?
Grocery-anchored centers, experiential retail, and mixed-use developments are leading performers.
Q2: How does insurance protect retail property owners?
It covers property damage, liability claims, lost income, and tenant-related risks—essential for long-term stability.
Q3: Is suburban retail a good investment in 2025?
Yes. Suburban centers are benefiting from population shifts and increased demand for local services.
