COVID-19 Weakens Retail Real Estate Fundamentals in Q3
- Retail sales rebounded to pre-COVID levels in Q3 as consumer sentiment improved.
- Retail real estate fundamentals weakened in Q3. The total retail availability rate increased by 20 basis points (bps) to 6.6%.
- Negative net absorption totaling nearly 15 million sq. ft.—largely in the neighborhood, community & strip center segment—was the largest decline since Q1 2009.
- Construction completions of less than 6 million sq. ft. were the lowest quarterly total ever recorded.
- Experience-based retail, including full-service restaurants, fitness centers and movie theaters, remained particularly hard hit by the pandemic.