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
Rendering of Life Time’s resort at The Falls

Luxury athletic resort to take over Bloomingdale’s space at The Falls

Some of the top retail leases in 2019 (Credit: Google Maps)

These were South Florida’s biggest retail leases of 2019

Daily Digest Miami

Palm Beach estate hits market for $110M, Gulfstream Park bets on $20M renovation

Riverstone Capital Group founder Jorge Portela and Shoppes of Forest Hill at 4316-4450 Forest Hill Boulevard (Credit: Google Maps)

Walmart-anchored shopping center in WPB sells for $20M

Shoppes at the Lexi with Kirk Olson and Drew Kristol

Latvian investor buys North Bay Village shopping center

18901 Southwest 106th Avenue, MMG Equity Partners CEO Gabriel Navarro (Credit: Google Maps)

MMG Equity Partners picks up retail center in Cutler Bay

Rendering of the Plaza Coral Gables

Pinstripes bowling alley inks lease at The Plaza Coral Gables

Walgreens at 3200 South Federal Highway

Walgreens sells Delray Beach store on Federal Highway

arrow_forward_ios
Loading...