U.S. Retail MarketView Q2 2013

Overview​

  • The U.S. retail market continued to improve in Q2 2013 with the national availability rate decreasing 60 basis points (bps) on a year-over-
    year basis to 12.3%.
  • The University of Michigan Consumer Confidence Index hit a six-year high in July, driven by rising home values and household balance sheets, which improves the long-term outlook for retail store sales. 
  • Prime rents in major shopping districts across the U.S. stabilized during the quarter, with 10 of the 12 surveyed markets reporting no change in prime asking rents from Q1 2013.
  • Investors continued to fan out to secondary markets, as retail investment sales transaction volume in non-major markets increased at twice the rate of the top six markets over the past year. 
  • Total returns from retail assets, particularly superregional malls, were strong in Q2 2013. One-year annualized total returns from retail assets were 12.8%, outperforming all other property types on an unlevered basis.

download the full U.S Retail MarketView

view Anthony Buono's commentary on the U.S. retail market’s performance during Q2 2013