Investment in retail properties nationwide rose in Q3 2023 to $11.86 billion, marking the first increase in deal volume since Q3 2022, according to a new report from Northmarq.
Though the upward movement was welcome after three quarters of steadily declining investment, it was still 31% below year-ago levels when sales hit $17.66 billion. It was, however, 34% higher than the $8.84 billion recorded in 2Q 2023 when volume fell below $10 billion for the first time since the Covid pandemic.
"Healthy demand from retail tenants and a thin development pipeline are helping to buoy market conditions. With continued consumer spending, many retail brands are actively expanding and vacancy rates are shrinking," the report commented. "If activity levels hold steady, during the final three months of the year, the market would post an annual sales volume similar to 2019 [$48.97 billion]."
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