The retail property market has kept historically tight as spending continues to grow, though at a slower pace with consumers relying more on savings and credit to buy goods.
The retail vacancy rate of 5.3% in the second quarter of 2024 was the lowest in the last 20 years. A net 1.4 million SF of retail space was absorbed in 2Q2024, recovering from the first quarter's first negative reading in three years, according to Cushman & Wakefields' 2Q2024 report on U.S. shopping centers.
Retail was buoyed by a 2.4% increase in real personal consumption spending compared to 2023 as real disposable personal income rose 1.1%. However, "Credit card usage is at an all-time high and delinquencies for some cohorts are rising," the report noted. The personal saving rate averaged 3.7% over the past six months, or about half the 2019 rate.
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