As keen observers are already aware, reports of the “death of brick-and-mortar” retail have been greatly exaggerated. Neither the ubiquity of e-commerce nor global pandemic have led to the industry’s demise. Unlike other commercial real estate markets, vacant retail space is in historically low supply, with an availability rate nearly 200 basis points below its historical average of 6.8%. So despite the current high interest rate environment and concerns over inflation, how is retail leasing managing not only to survive but to thrive?
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Thriving in 2024: Brick-and-mortar retail is back in fashion
With consumers willing to spend, and available space in short supply due to a lack of construction starts, retail continues to provide investors with exciting opportunities in an otherwise-bearish commercial real estate market.
As U.S. businesses face ongoing economic headwinds, commercial lenders are acting more aggressively to reduce their exposure to rogue...