Retail’s comeback continues with soaring rental growth

Retail’s journey from underdog to a favored asset class has continued into the second quarter of 2022, according to JLL.

Increased occupancies, population growth and low delivery of new product mixed with high construction costs are all driving market rent growth for retail, making the sector even more attractive to investors. Several markets show they have the most momentum for rent growth, with four emerging ones identified as having the most potential.

The top eight markets with high population growth are also leading when it comes to rental growth. With a nearly 63 percent growth in rental rates since 2011, Nashville is the top momentum market, followed by South Florida at 47.1 percent and Austin and Tampa both at 39 percent. Other top markets for rental growth include Denver with 37 percent and Charlotte, Dallas-Fort Worth and Raleigh-Durham all around 30 percent rental growth. These momentum markets have seen rental growth since 2011 above the national 10-year