The retail sector is recording mixed performance. The economy has been on an extended upward trajectory, with labor markets expanding and the unemployment rate near 50-year lows. While consumers are in a strong position, the nature of how we buy things is impacting retailers and retail real estate.
As store closures continue, those vacancies put stress on individual centers. However, the overall market fundamentals are not as bleak as one might imagine. The retail vacancy rate in the U.S. has held very steady in recent years, while rents have been on the rise, after posting minimal gains until 2016.
Download the Research Rundown: National Retail Overview for a more detailed look at the state of the retail market, including construction and investment activity trends.
Read the related Q3 Market News: Despite Market Challenges, Retail Properties Receive Steady Financing Interest