Q2 Retail Preview: After A Solid 1H, What's Needed For Retail To Outperform in 2

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Q2 Retail Preview: After A Solid 1H, What's Needed For Retail To Outperform in 2

Real Estate | Retail

July 07, 2026

Michael Griffin, CFA Q2 Retail Preview: After A Solid 1H, What's

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Michael.Griffin@evercoreisi.com Needed For Retail To Outperform in 2H?

Steve Sakwa ◼ Heading into Q2 retail earnings, we expect a continuation of

212-446-9462 solid leasing momentum, healthy new and renewal spreads Steve.Sakwa@evercoreisi.com

and constructive commentary from C-Suites on demand for

retail space. It does not appear that the Middle East conflict

had an impact on consumers’ willingness to spend at

shopping centers or malls and, in fact, we have seen retail

sales continue to improve so far in 2026. That said, with the

stocks solidly outperforming YTD (mall REITs +26%,

shopping center REITs +23% vs. REITs overall +19%), the

bar is higher heading into the prints to keep the

outperformance going.

◼ Key areas of focus for Q2 include: 1) leasing fundamentals,

occupancy trends, the timing of SNO commencements and

how these translate into occupancy gains and FFO growth,

2) commentary on consumer spending trends, tenant

productivity and retailer demand for additional space, and 3)

capital allocation, including external growth opportunities,

redevelopment execution and accretion from investments

given continued private market demand for retail assets.

More broadly, investors will be focused on whether retail

REITs can continue converting strong leasing momentum

into sustained same store NOI and earnings growth.

◼ Tenant credit issues have become much less of a focus with

most REITs expecting bad debt to remain at or modestly

below long term averages. That said, tenant health remains

important, particularly for retailers operating in more