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U.S. Retail investment*
$39.2
Investment sales (YTD, billions of $US)
-21.4%
YTD investment sale growth (%)
4.3%
Average cap rate (%)
-8
12-month change in cap rate (bp)
U.S. Retail property market*
-7
12-month change in total vacancy (bps)
0.6%
​​12-month net absorption (% of inventory)
0.7%
12-month completions (% of inventory)
4.8%
12-month rent growth (p.s.f.)
  • Despite the headlines, retail demand remains stable but anticipated to decline through the remainder of the year.

  • Overall retail volume continues to decline, seeing a further dip in transaction volume by 23.4 percent year-over-year, though pipelines remain steady.

  • Investors continue to narrow focus on strong, reputable primary markets, though little product is available.

  • Volumes decline and buyer pools shrink in 2017.

  • Investors are willing to take on more risk for more upside as opportunities present themselves.

*Data is from Q3 2017 U.S Retail Quick Look.

U.S. Retail cap rate map

 Additional resources

Trophy retail site in Beverly Hills

​As investors examine how global market volatility impacts commercial real estate, one thing remains clear: REITs are back in the limelight with increased returns year-over-year. ​

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