BOSTON — Boston’s retail market remains among the tightest in the nation, with a 3.4% vacancy rate and retail sales growth of 5.0% over the past year, according to the third quarter 2026 Boston Retail Market Report released by Marcus & Millichap.
The commercial real estate brokerage firm published the report September 14, providing an overview of retail market conditions across the Boston metropolitan area.
Boston’s retail vacancy rate stood at 3.4% in June, keeping the metro among the nation’s tightest retail markets.
“Boston remains one of the nation’s tightest retail markets despite recent employment headwinds and subdued space absorption,” said Thomas Shihadeh, managing director and market leader, Boston, at Marcus & Millichap.
Shihadeh said strong retail sales and Boston’s affluent resident base continue to support consumer demand.
Retail sales increased 5.0% in the 12 months ended in June, placing Boston among the top five major U.S. metropolitan areas for retail sales growth. Boston was also the only market outside the Sun Belt to achieve a top-five ranking during the period.
The region’s employment picture showed improvement during the first half of 2026. Approximately 17,000 jobs were added on net during the first six months of the year, following the loss of approximately 30,000 positions in 2025.
Retail space absorption varied across Boston-area submarkets. Worcester recorded the strongest retail space absorption during the past 12 months, supported by steady leasing of small-format properties.
Investment activity has also shifted toward certain types of retail properties. Marcus & Millichap reported that institutional buyers have increased their share of mixed-use storefront investment volume, indicating a greater focus on higher-quality assets in and around Boston’s urban core.
“That shift stands out even as overall transaction activity has moderated,” Shihadeh said.
The report’s findings point to a Boston retail market characterized by low vacancy and continued consumer demand, while employment conditions and overall transaction activity remain important factors in the market.
Boston’s combination of a 3.4% retail vacancy rate and 5.0% annual retail sales growth keeps the metropolitan area among the country’s strongest-performing major retail markets, according to the third quarter report.
