When trying to judge a market, deciding which metrics represent a greater reality gets tricky. Cushman & Wakefield's recent look at retail in the third quarter of 2023 offers several takeaways that paint an upbeat picture in a tough environment.

"The U.S. retail real estate market remained strong in the third quarter of 2023, thanks to healthy tenant demand and resilient consumer spending," the firm wrote. "The vacancy rate came in at a historic low of 5.4% in the third quarter, down 5 basis points (bps) from the Q2 level; it's down 40 bps compared to the third quarter of 2022 and 80 bps versus the pre-pandemic rate, pushing average asking rents higher in a competitive market."

Cushman & Wakefield points to continuing increases in consumer spending, with retailers responding by expanding their locations. "Post-pandemic demographic and shopping patterns are also creating pathways for service-oriented companies to occupy more retail space in new locations, particularly in the suburbs of Sun Belt markets."