Consumer focus on necessity goods and experiences drives tenants to available space

The retail sector entered the second half on solid footing, according to Marcus & Millichap Research.

Consumers’ focus on necessity goods and experiences is motivating a collection of retailers to broaden their footprints and product offerings to capture market share. The positive leasing momentum this creates will preserve historically limited single-tenant vacancy throughout 2023 and enable multi-tenant availability to remain on par with immediate pre-pandemic levels.

While some consumers’ budgets are being tested, resulting in a greater reliance on credit, an estimated 45 percent of Americans are planning to travel more this summer than they did last year. With gas prices down notably from mid-2022, when the national mean exceeded $4 per gallon, travelers are likely to have more money to spend on necessities and food while on the road. This dynamic represents a boon for growing convenience stores, drive-thrus and fast casual restaurants — including Buc-eeâ