US Retail Availability Hits New Low in Q1
May 1, 2023 | Karl Angelo Vidal and Ali Imran Naqvi | S&P Global Market Intelligence
The availability of retail properties in the US fell to a 4.8% record low in the first quarter, CBRE Group Inc. said in a report.
Power centers logged the biggest annual decline in availability to 5.2% from 6.1%, according to the commercial real estate services firm’s “Q1 2023 US Retail Figures” report. The availability rate of neighborhood, community and strip centers was down to 6.8% year over year, while lifestyle and mall properties dropped to 6%.
Retail absorption slipped 47% quarter over quarter to 8.6 million square feet in the first three months of 2023, the lowest total since the third quarter of 2020.
Rental growth stood at 2% in the first quarter, down 50 basis points year over year, although it remained above the 1.7% 10-year average. Rents at neighborhood, community and strip center properties were up 2.7% annually, while those for the lifestyle and mall space, as well as the power center segment, were intact.
