Dismal first half gives way to optimism for U.S. retail real estate

TRD MIAMI /
Sep.September 08, 2011 04:49 PM

The U.S. retail sector is showing signs of a rebound, and that could have a much-needed positive impact on retail real estate, according to Cassidy Turley’s September retail report released yesterday.

The report cites U.S. Bureau of Economic Analysis data showing consumer spending rose 0.5 percent in July, the largest increase since December 2009, and wages and disposable income gained 0.4 percent. Combine these improvements with gas prices dropping 40 cents per gallon since mid-May, and consumers appear ready to spend for the first time since the start of 2011. In fact, since April, the retail sector has added 97,000 jobs to accommodate the trend.

But that has yet to be reflected in the sector’s real estate. National retail vacancy rates are still hovering above 10 percent, whereas the historical average is 7 percent. Net absorption also declined in this year’s second quarter, by 2 million square feet, for the first time in a year.

Thus, while the retail real estate sector experienced a clear setback in the first half of 2011 — when Gross Domestic Product rose just 1 percent, compared to a healthy 3 percent in 2010 — there’s reason for optimism going forward. — Adam Fusfeld


Related Articles

arrow_forward_ios
27359 South Dixie Highway and Longpoint Realty Managing and Founding Partner Dwight Angelini (Google Maps)

Longpoint buys Fresco Y Mas-anchored center in Naranja

Longpoint buys Fresco Y Mas-anchored center in Naranja
Hard Rock Cafe at Bayside Marketplace (Hard Rock)

Bayside Marketplace sues to evict Bubba Gump, Hard Rock Cafe and three other tenants

Bayside Marketplace sues to evict Bubba Gump, Hard Rock Cafe and three other tenants
Commissioner Ricky Arriola and an aerial of Sunset Harbour in Miami Beach (Compass)

Miami Beach moves toward banning chain restaurants and stores in Sunset Harbour

Miami Beach moves toward banning chain restaurants and stores in Sunset Harbour
Diane Von Furstenberg, Brookfield Properties Bruce Flatt, and the DVF store in the Shops at Merrick Park (Getty, Google Maps)

Brookfield seeks to evict Diane Von Furstenberg at Merrick Park

Brookfield seeks to evict Diane Von Furstenberg at Merrick Park
Rendering of American Dream Miami, Triple Five Group chairman Nader Ghermezian

Triple Five “inching closer” to construction on American Dream Miami

Triple Five “inching closer” to construction on American Dream Miami
4402-4678 North University Drive, Todd Nepola

Miami Beach parking lot mogul sells retail center in Lauderhill for $13M

Miami Beach parking lot mogul sells retail center in Lauderhill for $13M
Mitchell Kaplan and Books & Books at 927 Lincoln Road (Google Maps) 

Books & Books closes its chapter on Lincoln Road

Books & Books closes its chapter on Lincoln Road
Diesel USA and Original Penguin Lincoln Road stores skipped April and May rent payments: lawsuit

Diesel USA and Original Penguin Lincoln Road stores skipped April and May rent payments: lawsuit

Diesel USA and Original Penguin Lincoln Road stores skipped April and May rent payments: lawsuit
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...