Rents grew 7x faster than wages in NYC.

Good afternoon, everyone.

• Banks are tightening their lending criteria for CRE assets while demand weakens.

• Apartment rents grew 7x faster than wages in NYC last year.

• 45,000 retail stores could close down in the next 5 years, according to UBS.

Colliers is predicting a slowdown in consumer spending in 2024, as job gains are gradually decreasing and lending terms remain tight.

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Consumer spending is expected to grow by 1.7% in 2024, compared to 2.0% in 2023.

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Nonetheless, Colliers says U.S. cities in the West, South, Southwest, and Mountains will be the ones experiencing the fastest growth thanks to a strong industry mix and solid demographics.

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Additionally, from a long-term standpoint, demographics will have a strong impact on consumer spending and where it will take place.

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Through 2050, one may expect a slower but steady growth of 1.7% per head, per year on average.

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A useful information for retailers is that most new high-income households are expected to emerge within smaller regions of States like Arizona, New Mexico, California and Texas.

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Colliers also recommends, during a slower growth environment, to pay more attention to the following: emotional connection, personal service, niche, fashionability, etc. with one end-goal in mind: differentiation.