The Retail Market
As expected, the overall retail market continued to do well through the first half of the year. Overall market vacancy declined to 9.2 percent from 10.1 at the end of last year. The improvement was fairly broad across all submarkets and retailers. At this point, the economy is fully open and virtually all retail sectors have recovered from the pandemic. There remains a shift toward value which has favored discounters and is being reinforced by current rising prices.
As the economy reopened and people went back to work, there was a shift from durable goods, people spending money on their homes, to clothing and services. Spending habits are more or less returning to pre-pandemic patterns. This includes the pandemic-influenced rise in online shopping which rose above 20 percent of all retail sales at the height of the pandemic but has since dropped to 13-14 percent… still above 2019 levels but manageable. Probably nothing signals this change more than Amazon shutting down their warehouse development and actually selling a few warehouses because of excess capacity... Read More