Retail rent growth slumped 0.5% at year's end, marking the first time the US retail market has seen negative rent growth since 2011. Unfortunately, this trajectory is expected to continue this year.
Colliers predicts rents will decline further over the next year as space give-backs push vacancies higher. The firm predicts retail rents will fall 3% this year and should return to pre-pandemic levels in 2022, noting that rent collections continue to tick up and signal stabilization may be on the horizon.
Large coastal markets like Boston, New York, and Los Angeles showed the most negative rent growth last year, while Southeastern markets liked Nashville, Tampa, and Orlando fared better and sustained positive momentum.
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