CoStar Raises Near-Term U.S. Retail Forecast

Business

CoStar Raises Near-Term U.S. Retail Forecast

2026-11-04 22:03 Last Updated At：22:20

ARLINGTON, Va.--(BUSINESS WIRE)--Nov 4, 2026--

U.S. retail projections are expected to improve in the near-term, according to a revised forecast from CoStar, a leading global provider of online real estate marketplaces, information and analytics in the property markets.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20261104669190/en/

National retail vacancy is now forecasted to end the year at 4.26%, down from 4.32% in the third quarter.

Asking rent growth is estimated to reach $26.36 per square foot at the end of the year before rising to $27.12 per square foot by the end of 2027.

“Compared with the prior forecast, the near-term vacancy outlook has strengthened as second-half demand outperformed earlier expectations,” said Brandon Svec, national director of retail analytics at CoStar Group. “Demand is expected to cool in 2027, however, as annual net absorption is projected to fall roughly 15 million square feet, which would trail 16.8 million square feet of anticipated deliveries. Limited availability continues to support pricing, even as slower near-term demand and a gradual slowing in retail sales growth moderate the pace of acceleration.”

“The forecast carries risks on both sides, though the balance remains tilted to the downside,” said Svec. “Higher energy prices and inflation could further erode the cushion for consumers while pressuring retailer margins, while an even-higher-for-longer interest rate environment could weigh on business formation, retailer expansion and development activity. These risks, however, should be viewed against a retail market that remains fundamentally tight, with low vacancy and limited new construction providing a meaningful buffer against a softer economic environment.”

The full forecast can be found here.

For more information about the company and its products and services, please visit costargroup.com.

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a leading global provider of online real estate marketplaces, information, analytics, and digital twins in the property markets. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces.

CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Zonda, a leading provider of data, analytics, software, and marketplace solutions for the residential construction industry; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted 121 million average monthly unique visitors in the third quarter of 2026, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that projected U.S. retail demand, net absorption, vacancy rates, rent growth, deliveries and supply trends do not occur as expected.

More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website ( www.sec.gov ). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Ice hockey world championship sponsors increase pressure on IIHF over Russia's return

DUESSELDORF, Germany (AP) — The pressure on the International Ice Hockey Federation grew Wednesday as two major sponsors of the men's world championship said they would review their involvement if Russia takes part.

The tournament's main sponsor, automaker Skoda, says it will “reassess” its involvement if Russia plays, and another longtime backer, Strauss, says it would refuse to have its logo shown.

A Court of Arbitration for Sport ruling last week obliged the IIHF to lift its exclusion of Russian national teams, which had been in place since 2022 over the war in Ukraine.

Almost half of the 16 nations in the men’s championship in Germany next May are refusing to play Russia. The Canadian government also says it will not allow Russia to compete at the world junior championship there starting next month.

“We do not support the Court of Arbitration for Sport’s decision regarding the participation of Russian national teams in IIHF competitions," the Czech Republic-based automaker Skoda, which is part of Germany’s Volkswagen Group, said in an e-mailed statement.

"With Russia’s aggression continuing, we believe the Russian national team’s return to the world championship is incompatible with the values we have consistently upheld.

“If the Russian national team takes part in the tournament, we will reassess our involvement in the tournament and take further action. We are actively monitoring the situation, remain in close contact with our partners and are confident that a constructive solution can be found.”

Skoda has been a tournament sponsor for more than 30 years.

The CEO of Strauss, which makes work clothing and equipment, said his company could withdraw as a sponsor if Russia plays, in a sign of further pressure from Germany.

“We have been a partner of the Ice Hockey World Championship for many years and value our collaboration with the IIHF," Henning Strauss said in an e-mailed statement.

"Should Russia’s national team participate in the 2027 World Championship in Germany as a result of the CAS ruling, we will forgo all logo exposure associated with the tournament. We are also considering withdrawing as a sponsor.”

Other sponsors have been critical of Russia's return. Nokian Tyres said it would end its backing if Russia takes part and furniture maker AJ Products, a tournament sponsor since 1989, said Monday it would ask for its logo not to be shown.

The IIHF said Wednesday that the impact of the ruling had been “significantly underestimated” and said it was still deciding how to react.

“The IIHF is aware of the recent statements made from key stakeholders regarding this decision and is carefully analyzing the scenarios around CAS’s ruling,” it said.

“As presented to the CAS, the immediate reintegration of Russian teams presents significant practical and sporting challenges, including visa and entry requirements, security provisions, logistical constraints and consequences for competition formats, all compounded by the limited time available, with some events only weeks away.

"The global impact of the decision made by the CAS Panel and the challenges it creates for all involved were significantly underestimated."

Finland, Sweden, the Czech Republic, Norway, Denmark and Latvia have said they will play the tournament but not games against Russia, in a growing boycott since Finland declared its position Monday.

The Austrian federation became the seventh to join late Tuesday when its CEO Alexander Helwig told broadcaster ORF that “as of now, we would certainly not play against Russia," as part of broader European opposition.

Russian Sports Minister Mikhail Degtyaryov said in a statement via the Tass news agency on Tuesday that he expected his country to be awarded wins if other nations forfeit games, and that Russia would send information to the International Olympic Committee about potential boycotts and the conduct of competition host nations.

See AP’s full sports coverage here