Competition for prime retail space intensified in Q2 2024, as limited availability hampered expansion efforts.
Retail net absorption surged 75.4% quarter over quarter, driven by fewer moveouts and increased space leasing in community centers, lifestyle centers and Class C malls. Meanwhile, construction hit a record low — now 210 basis points below its historical average, giving landlords greater pricing power in rent negotiations due to limited availability.
Markets in the South and Southwest continue to lead in rent gains, fueled by consumption-driven demand and population growth. Despite all these challenges, optimism exists for retail capital markets to stabilize, potentially boosting investment activity in the latter half of the year. Read the full retail outlook report here.
