Retail properties held steady through the second quarter of 2020, but vacancies are likely to increase and rents poised to fall as the pandemic continues to severely impact the retail industry, according to a new analysis.
Barbara Byrne Denham, a senior economist in the research and economics department at Real Estate Information Services—a branch of Moody's Analytics—wrote in a report that the retail sector will absorb nearly 46 million square feet in 2020, and another 11 million square feet the following year.
"This will push the vacancy rate to 12.6% at the end of 2020. Rent declines are forecasted to decline a total of 8.1% (asking) and 11.2% (effective) by the end of 2020," Denham wrote.
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Jacqueline Thomsen
Jacqueline Thomsen, based in Washington, is a reporter covering D.C. federal courts and the legal side of politics. Contact her at [email protected] and follow her on Twitter @jacq_thomsen.
