Retail space availability shrinks in the face of robust demand
Retail net absorption increased 12.6 percent quarter-over-quarter to 10.8 million square feet. In contrast, deliveries – already low – decreased 5.1 percent from the previous quarter. Retail construction starts also have been falling the past year, with just 11.9 million square feet of projects started the first quarter – the lowest level since 2005.
There is now less space available for lease in shopping centers than at any other time since before the Great Recession of 2008. Availability within non-mall multi-tenant retail centers dropped to 7.5 percent in June, a precipitous drop from 2020 when pandemic measures caused availability to spike to double digits.
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