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ccupancy costs for pet supplies stores skyrocketed by 48% in 2024, outpacing other retail categories. Despite historically low available retail space, landlords took an average of 124 days to fill vacancies last year, a six-year high. According to Datex Property Solutions' "2025 Market Outlook Report," rent and occupancy costs reached new highs, with the national average occupancy cost for retail brands rising to 7.73% in 2024.

    This surge is attributed to nearly 70% of rents on new leases increasing, compared to 63% the previous year. Datex CEO Mark Sigal notes that existing tenants are more confident in their locations, but new tenants are cautious due to rising occupancy costs and economic concerns. Pet supplies stores were particularly hard hit, while sporting goods retailers (-29%) and grocers (-15%) saw decreases in occupancy costs.

    Average rental rates reached $16.59 per sq. ft., a 9% increase over 2022. Rent collections remained strong at 92%, another six-year high. Sigal observes that merchants are becoming more selective about new locations, but renewal activity remains robust as brands stick with proven sites.