Soaring Covid-19 Cases, Lockdowns Spell Trouble for Retail
Already high vacancy rates are expected to rise as restrictions tighten, but some indicators still point to the possibility of a healthy holiday shopping season.
November 24, 2020 | Rayna Katz | GlobeSt.com
As the coronavirus pandemic enters a new and deadly phase across the US, the retail sector appears poised to once again suffer losses as lockdown measures are stepped up.
New York, New Jersey and New Mexico already have instituted tighter limitations in the wake of increased hospitalization and infection rates, according to a new report from Marcus & Millichap. A number of counties across California also have started cracking down on behaviors that could lead to virus spreading. In the near-term future, more spots are expected to enact restrictive orders.
In addition, retail is entering this new phase in a weakened position with a vacancy rate that has climbed by 50 basis points to 5.5%. In fact, the vacancy for malls spiked in the third quarter to its highest level in two decades, according to research from Moody’s Analytics REIS.
