IRVINE, CA—E-commerce is gaining a larger share of consumer dollars, and valuations are beginning to falter, but the outlook for retail varies depending on region, Ten-X Research shows.
According to the infographics below, the share of retail sales from e-commerce has nearly doubled since 2007, and this share is only growing. This could continue to have a dampening effect on retail space absorption. And, after retail square footage per person peaked in 2008, it has been dropping and is now lower than it was in 2006.
Retail valuations are also beginning to soften, with average prices decreasing from the beginning of 2016 to the beginning of 2017.
But, like most sectors of commercial real estate, the retail picture is still a regional one. Looking at past-year employment growth, the housing recovery and demographics in the different regions of the country, the retail outlook is brightest for the West, Southeast and Southwest, while the Midwest and Northeast are lagging.
To learn more about what's happening in commercial real estate, visit Ten-X Research for full access to the latest reports.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
