U.S. retail vacancy held at 4.4% in Q2, foot traffic rose 2.2%, and leasing activity rebounded. Mall vacancy improved to 8.5%, supporting Apple's 270+ stores. The stable environment backs Apple's retail margins ahead of the iPhone launch.
U.S. retail vacancy held at 4.4% in the second quarter, according to a report on national retail market statistics. Open-air shopping centers, where many Apple stores are located, saw vacancy steady at 5.5%. Mall vacancy improved 30 basis points to 8.5%.
Net absorption rebounded to 10.2 million square feet in the quarter, reversing a soft start to the year. General retail – a category that includes freestanding stores and mixed-use developments – accounted for 7 million square feet of that demand. Shopping centers absorbed 1.7 million square feet, and malls took 1.6 million square feet.
Apple operates more than 270 U.S. stores, most in malls and shopping centers. The improvement in mall vacancy and the steady leasing activity suggest retailers are still competing for well-located space, real estate analysts said. That competition supports rents and foot traffic for existing tenants.
National foot traffic rose 2.2% on average during the quarter. Discount and dollar stores posted the strongest gains at 7.7% to 9.2%. Department stores and clothing retailers each recorded 4% to 7% growth. Apple stores, which fall under the electronics category, benefit from the broader consumer willingness to spend on experiences and durable goods, the report noted.
Average asking rents increased to $26.02 per square foot, up 0.5% from the prior quarter. New supply remains limited – 8.7 million square feet delivered in the quarter, with 56.1 million square feet under construction, concentrated in Sun Belt markets like Dallas, Houston, and Austin. Elevated construction costs and financing constraints keep speculative development low, which limits the threat of oversupply for existing landlords like mall operators.
For Apple, the stable retail environment means less pressure on store-level margins and less risk of rent spikes. The company's retail segment generated $24.4 billion in sales in fiscal 2025, or roughly 10% of total revenue. A tight leasing market with modest rent growth supports that contribution without squeezing occupancy costs.
Mall vacancy fell to 8.5% in the quarter, the lowest level since 2019. Leasing activity in the quarter reached 10.2 million square feet, the highest in a year.
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