Retail Fundamentals Strengthen as Consumer Sentiment Rebounds
- Average retail net asking rents increased on both an annual and quarterly basis to $18.01 per sq. ft., reflecting increased demand for retail space.
- Net absorption totaled nearly 3.6 million sq. ft. in Q2.
- Total retail sales increased nearly 3.0% year-over-year to $1.55 trillion, driven by growth in the e-commerce (non-store retailers) and restaurants (food service & drinking places) categories.
- Low unemployment, rising wages and increased consumer spending are positive indicators for the retail industry in the second half of the year.
- New supply is limited, creating opportunities for redevelopment of existing properties.
- Total retail availability held steady at 6.2%, with continued demand for grocery-anchored neighborhood community & strip centers.