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Property market


12-month change in total vacancy (bps)


​​12-month net absorption (as % of inventory)


12-month completions (as % of inventory)


12-month rent growth (p.s.f.)

Investment market


Investment sales (YTD, billions of $US)


YTD investment sales growth


Average cap rate


12-month change in cap rate (bps)

  • Demand: Despite headlines, retail fundamentals remain strong in Q1 2018 with vacancy stable at 4.6 percent.
  • Transactions: Though all investors were slow to close transactions at the start of 2018, there is a large amount of capital looking to be deployed into retail. 
  • Markets: Given the limited amount of core product available, investors maintain a wide geographic purview for potential acquisitions, seeking growth opportunities.
  • Sources of capital: While retail transactions consistently slowed over the last two years leading to a 30.9 percent decline in investment sales quarter-over-quarter, renewed institutional interest hints at a promising full year.
  • Sources of risk: Although debt is available, interest rate increases are having an impact on retail asset valuations, dragging out completion of some transactions.

U.S. Retail cap rate map

While prime urban assets remain among the most liquid, some softening in cap rates has been seen throughout the first quarter.

Methodology: Cap rates pertain to JLL’s expected average ranges for Prime Urban assets being priced as of Q1 2018.

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View the complete Q1 2018 U.S. Retail Investment Quick Look for more on these latest trends.