Retail has been doing well. Open-air U.S. shopping centers have seen low vacancy levels. CoStar data said only 6.2% of such space was available for lease — the lowest level the firm had seen since 2006. Landlords have gained pricing power to raise rents on renewals.
Retail space availability was at a multi-decade low of 5% in the third quarter, according to Newmark. Only 5.9 million square feet were delivered in the quarter, keeping conditions tight. And although the 29.3 million square feet leased in the quarter was 33% below the 10-year average, it was due to its scarcity, especially for prime retail assets, the report said. “Retail demand for new space outpaces other CRE sectors,” it noted.
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