4Q 2023 Retail National Report

Consumption Trends Foster Broad Demand for Space, Preserving Retail Sector’s Standout Performance

The retail sector is on solid footing, with the segment well equipped to handle potential headwinds that may emerge in the coming quarters. Consumers’ focus on necessity goods and dining out is motivating a diverse group of retailers to grow their store counts, a dynamic that will support the backfilling of vacant space during a span of limited construction. The positive leasing velocity this creates will extend a multi-year stretch of positive net absorption.
 

Key Features Include: 

• Broad demand drivers that will preserve low vacancy and record asking rents

• Breakdown of specific, property-type fundamentals and candidates likely to backfill vacant space

• Factors that will allow single-tenant demand to exceed near-term supply

• Discussion of retail investment landscape and capital availability