Consumer spending on retail has rebounded, eclipsing pre-COVID-19 levels. Now, investor confidence — and demand — is following, evidenced by a bounce-back in retail real estate transaction volumes, reported JLL.
Retail, especially non-essentials goods and services, was one of the hardest hit sectors early on during the pandemic, but with an increase in vaccinations and easing restrictions, those property sectors feeling the deepest impacts in 2020 are experiencing increased investor favor and returning to pre-pandemic levels. For retail, that means capturing an 11 percent share of transaction volume year-to-date in 2021, approximately where it was prior to the 2020 lockdowns.
“Consumer shopping patterns have bounced back due to pent-up demand over the past 12 months. People are spending money across the spectrum of retail locations,” said Danny Finkle, senior managing director on JLL’s retail co-leader in capital markets. “This increased spending goes hand-