U.S shopping centers are boasting a near two-decade low vacancy rate, with just 5.4% of vacancy.
Even though foot traffic is slowly coming down compared to a year ago, the U.S. economy is mainly sustained thanks to retail activity.
Nonetheless, the absorption ended up being slightly negative (-1.2M SF, country-wide) in Q1, which can be explained by a lack of new developments and, as simple as it seems, available space for tenants to move in since the pandemic, as well as closures from some very large retailers.
Cushman & Wakefield insists that the situation is even better than pre-Covid with consumers increasingly favoring in-person shopping experiences.
As consumers are now prioritizing experiences and travel, shopping centers relying too heavily on discretionary spending may find themselves in trouble in the near future.
Despite 1,700 retail closures in Q1, more than 3,000 openings have been announced.
If you want to know more about what’s happening in the shopping center asset class, the full report is available by clicking on the button below.
