Due to the retail sector’s high levels of occupancy and its undersupply of new development, current owners and investors are poised to capitalize upon the sector’s strong fundamentals and long-term rent growth.
According to JLL’s U.S. Second Quarter 2023 Retail Outlook, net absorption increased 12.6 percent quarter-over-quarter up to 10.8 million square feet, and deliveries decreased 5.1 percent from the previous quarter, driving the current year-over-year rent growth to 3.6 percent across all retail asset categories. This sets the overall average occupancy for retail centers across