Kimberly Blair, a San Diego-based wellness practitioner specializing in grief counseling, noticed an uptick in “screen fatigue” among her clients, whom she had been counseling largely virtually. So, she decided to open a storefront location and offer more in-person sessions. When she began searching for locations, she found that there were many prime options because shopping center space was plentiful.<\/p>\n
“I was able to negotiate a fantastic monthly rent, but also a flexible lease term. Which in turn secures better outcomes for my clients who need in-person support, and also for my business as a competitive advantage,” Blair said.<\/p>\n
Across the country, small businesses, including health practitioners, yoga instructors, and artists, are finding it easier to secure prime commercial space that was once out of their reach. However, experts caution that the opportunities for small businesses vary largely by geography.<\/p>\n
According to a recent report from commercial real estate firm Cushman & Wakefield, the national vacancy rate in shopping centers rose to 5.8% in the second quarter of 2025, a 20 basis point increase from Q1 and a 50 basis point increase from a year ago. The report indicates an overall softening of demand, which is leading to easing pressure on asking rents, including for shopping center space specifically.<\/p>\n
“Main Street opportunities are definitely on the rise for tenants beyond the traditional retail model,” said Elizabeth Lafontaine, director of research at Placer.ai, which monitors business foot traffic. Opening up retail real estate, especially in booming markets with high consumer migration, presents opportunities for independent retailers and boutiques, Lafontaine said, and she added that malls are also now more open to local businesses, especially if they are ones locally recognizable.<\/p>\n
Blair’s experience is not uncommon, according to Teresha Aird, co-founder and chief marketing officer of real estate brokerage Offices.net. “We’ve seen a noticeable uptick in small businesses taking advantage of vacancies in areas that used to be off-limits due to pricing,” Aird said, adding that some of the hardest-hit retail corridors, like inner-ring suburbs and mid-sized city centers, are seeing a reset.<\/p>\n
To be clear, while vacancies are growing in strip malls, the rents are still rising. “Typically, rental rates don’t go down,” said James Bohnaker, senior economist and Cushman & Wakefield. “The rental rates are going up, but not at the same rate of increase,” he said, adding that post Covid, rental rates were going up 4%, but now they are closer to 2%.<\/p>\n
It’s this flattening of the rental rate rise along with increased vacancies that is creating an opening for small businesses wanting to expand into once priced-out commercial property. “We are seeing a rise in medical offices and spas and other uses you wouldn’t have typically seen,” Bohnaker said.<\/p>\n
Andrew Spatz, a partner at the New York City law firm of Dorf Nelson & Zauderer who specializes in commercial real estate & land use development, says that the small business opportunity is determined by geography. The marketplace in and about New York City, for example, is “absolutely counter” to the idea that smaller businesses can gain better deals.<\/p>\n
Jacob Naig, a real estate broker and property rehabber in Des Moines, Iowa, said that landlords in his area generally don’t want space to sit empty, which opens up opportunities for smaller businesses. “In West Des Moines, a family-owned restaurant recently assumed an old chain pizzeria location at a rent of almost 30% below the original asking rent,” Naig said.<\/p>\n
Marc Norman, associate dean at New York University’s SPS Schack Institute of Real Estate, points to several variables that determine whether a non-traditional business can secure a spot once occupied by a pricey chain. For more information on this trend and its implications, you can find the full report Here<\/a><\/p>\n When considering a move into a formerly chain-occupied commercial space, small business owners should carefully evaluate the location’s foot traffic, local demand, and potential for community engagement to ensure the best chance of success. Researching the area’s economic conditions and speaking with local business owners can provide valuable insights into the viability of the location.<\/p>\n","protected":false},"excerpt":{"rendered":" Introduction to the Shift in Commercial Real Estate Kimberly Blair, a San Diego-based wellness practitioner specializing in grief counseling, noticed an uptick in “screen fatigue” among her clients, whom she had been counseling largely virtually. So, she decided to open a storefront location and offer more in-person sessions. When she began searching for locations, she […]<\/p>\n","protected":false},"author":1,"featured_media":987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108200144-1758133019980-gettyimages-2231363422-298140final.jpeg?v=1758133117&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-986","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-small-business"},"_links":{"self":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/comments?post=986"}],"version-history":[{"count":1,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/986\/revisions"}],"predecessor-version":[{"id":988,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/986\/revisions\/988"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/media\/987"}],"wp:attachment":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/media?parent=986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/categories?post=986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/tags?post=986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Smart Tip for Readers<\/h2>\n