California sees a record high in the number of shopping locations despite ongoing concerns about the retail industry.
In a surprising turn of events, the anticipated decline of shopping centers in the United States has given way to a net increase in retail space, defying widespread predictions of a retail apocalypse. An analysis of CoStar data from 2020 to 2025 uncovers that while many physical retail locations were indeed shuttered, notable expansions in new shopping space have also been registered.
According to a study conducted by Media News Source, California alone saw the addition of 8 million square feet of retail space during this period, culminating in a national total of 257 million square feet. This growth occurred despite the upheaval experienced during the COVID-19 pandemic, which prompted widespread lockdowns and shifting consumer habits. Notably, even as California holds the title of the leading retail state with 1.7 billion square feet of retail space, Texas took the crown for the most impressive percentage growth, adding 82 million square feet, followed closely by Florida and North Carolina.
Bill Shopoff, a key figure in retail development, expressed surprise at the data indicating that more retail space was developed than removed. He is currently leading a transformative redevelopment project at the Westminster Mall site, which will transition the former 1.2-million-square-foot shopping center into a mixed-use environment featuring residential homes, hotels, parks, and new retail establishments. This shift highlights the evolving nature of retail spaces and how they might be repurposed to better serve community needs.
Despite California’s relatively modest growth in retail space, the state recorded the highest rate of demolition, removing 23 million square feet of retail space over the last six years. This trend was largely driven by an accelerated pivot toward online shopping during the pandemic, prompting many traditional shopping venues to close permanently.
While demolitions captured significant media attention, new construction continues unabated, albeit with a change in the type of retail spaces being built. Today’s developments tend to focus on smaller, neighborhood-centric centers rather than sprawling malls. This shift is accompanied by an increase in service-oriented establishments—such as medical and fitness centers—tailored to changing consumer preferences, while discount retailers and dining experiences are also on the rise.
Experts assert that the supposed decline of physical retail space may have been mischaracterized. It appears that the sector is undergoing a transformation rather than experiencing an extinction event. Many consumers are gradually returning to in-person shopping, valuing the experience and engagement that physical retail can offer.
As the retail landscape continues to adapt in response to changing consumer dynamics, the addition of new shopping space signals a potential resurgence in brick-and-mortar establishments. With retail largely reflecting overarching economic conditions—such as job growth and population changes—this sector reveals considerable resilience amid a backdrop of evolving buying habits. Collectively, these indicators suggest a more nuanced picture of the retail industry than initially perceived, pointing toward a resilient future where well-conceived retail strategies continue to thrive.
