Brick-and-mortar retail REITs gain value as e-commerce growth plateaus near 16.4%, driven by omnichannel and service shifts.

Brick-and-mortar retail REITs are showing strong fundamentals as e-commerce market share plateaus around 16.4%, signaling a shift to coexistence rather than dominance. Rising shipping and return costs, reduced subsidies, and a pivot to service-oriented tenants have increased the value of physical retail spaces. Shopping center REITs like Brixmor and Kimco benefit from limited new supply, strong leasing spreads, and landlord-favored negotiations, making them attractive investments. The future retail landscape is expected to be omnichannel, with both online and physical stores growing steadily rather than competing for market share.