Tuesday, April 24, 2018

Q1 Report: Decline in completions fuels rise in retail rents

Chain Store Age

Retail real estate completions came in just under 8 million sq. ft. in the first quarter of 2018, a 23% decline from Q1 2017. That plus a falloff in the number of store closures helped continue an ongoing trend toward an increase in net absorption and higher rents, according to CBRE Research.

Overall net absorption was positive at 14.2 million sq. ft. and up significantly from a record-low level of 811,000 sq. ft. in Q1 2017. Fewer closings had the biggest impact on this measure, which was also driven by gains in the high street, freestanding properties category (6.6 million sq. ft. absorbed) and the neighborhood, community & strip centers segment (5.6 million sq. ft. absorbed), according to CBRE analysts.. . . more