Puerto Rico Retail Report, H2 2021
After enduring a fiscal crisis, an extended recession, a multitude of natural disasters, and a global pandemic, Puerto Rico has continued to be resilient. The Island’s resurgence is founded on its healthy business environment, its status as a part of the United States, its highly competitive tax code, its coming emergence from government debt restructuring, and its entrepreneurial spirit. As 2022 begins, we feel optimistic that Puerto Rico will continue to expand and grow.
Retail sales surged in Q2 2021 and are expected to exceed $3 billion across various properties such as shopping centers and department stores in 2022. MMajor leases were signed in 2021, particularly the various grocery stores located in Hatillo, Vega Baja, Burlington in Hatillo as well as several China Districts, Grand Stores, and Me Salve expansions. Much of the large-scale leases signed during 2021 were executed by local companies that are capitalizing on the increase of retail sales and large vacant junior box space, thereby expanding their footprint and capturing the retail sales left behind. Additional major leases signed will be announced Q1 2022, in excess of 350,000 SF. While the explicit data is not readily available, empirical evidence suggests that the Island has returned to pre-pandemic traffic in shopping centers and other retail stores, as it is observed that omicron is not deterring tourism or retail sales.