Retail properties passed an important milestone at the midpoint of the year, as the national vacancy rate returned to levels recorded in 2019, according to a report by Marcus & Millichap.
Operations at physical retailers are being aided by the labor recovery. The addition of 841,000 jobs in July and August pushed the employment base beyond the previous pre-pandemic high. That, paired with additional savings accumulation earlier in the health crisis, are supporting post-lockdown shopping. Spending as of July was up 19 percent from February 2020 on an inflation-adjusted basis, supporting leasing activity. Multi-tenant space, in particular, has seen an acceleration in absorption so far this year relative to 2021. While multi-tenant vacancy still trailed the 2019 rate by 30 basis points as of June, returning shoppers are bolstering fundamentals, especially in the suburbs.
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