Retail real estate’s fourth-quarter performance signaled a modest upturn in conditions as consumers prepped for the holidays and vaccine breakthroughs pointed to a 2021 recovery.
The $1.9 trillion coronavirus relief package approved by congress will help keep struggling US households stay afloat and boost spending.
Major markets in the Sun Belt – including Tampa, Atlanta, and Dallas - show strong year-over-year rent growth. Warmer weather and more mobile consumers are boosting retail traffic and performance.
Net absorption during the fourth quarter totaled 3.0 million square feet – the first positive absorption seen since the end of 2019. Freestanding retail and strip centers lifted performance.
Some mall retailers like Sephora and Gap are betting on off-mall locations for future growth.
Vacant mall space is being repurposed into distribution centers, schools and other new uses.
Retailers selling home-related goods for home improvement projects continue to see high demand and strong growth in comp sales.
Vacancy for smaller shopping centers remains lower than it did during the Great Recession.
To learn how other major retail sectors performed, download the full report.
