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

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
Q2’s largest retail transaction: Regal Acquisitions’ $34 purchase of CVS-anchored retail at Boulan South Beach hotel (Google Maps)
South Florida’s retail market slowly emerges from pandemic woes in Q2
South Florida’s retail market slowly emerges from pandemic woes in Q2
Jorge and Jon Paul Perez with a rendering of the project (Getty, Related Group)
Related wins approval for another Wynwood mixed-use multifamily project
Related wins approval for another Wynwood mixed-use multifamily project
Cobblestone Commons at 8767 Boynton Beach Boulevard (Google Maps)
Tricor Financial sells Winn-Dixie-anchored Cobblestone Commons near Boynton Beach for $38M
Tricor Financial sells Winn-Dixie-anchored Cobblestone Commons near Boynton Beach for $38M
The Shoppes of Oakland Forest (Rich Commercial Group)
Shopping center in Oakland Park sells for $11M
Shopping center in Oakland Park sells for $11M
BridgeInvest's Alex Horn and Rieber Developments' Bernardo Rieber with a rendering of the project 
Rieber lands $15M loan for Aventura mixed-use project
Rieber lands $15M loan for Aventura mixed-use project
Arnaldo Bomnin and 8525 South Dixie Highway (Google Maps)
Bomnin Automotive pays $7M for former Pinecrest Mitsubishi dealership
Bomnin Automotive pays $7M for former Pinecrest Mitsubishi dealership
21046 Commercial Trail, Boca Raton (Google Maps, iStock)
New bowling alley lease couldn’t keep South Florida’s retail market out of the gutter in Q4
New bowling alley lease couldn’t keep South Florida’s retail market out of the gutter in Q4
2195 Northwest 103rd Street (Google Maps, iStock)
Four South Florida gas stations sell for $15M
Four South Florida gas stations sell for $15M
arrow_forward_ios

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

Loading...