Net absorption in the retail market was negative 1.125 million square feet in the second quarter, the lowest since the second quarter of 2018; while new construction of 365,000 square feet was the lowest since the prior recession.
Retail: National Vacancy & Rent Trends
Source: Moody’s Analytics REIS
Statistics by Metro
In the retail sector, which includes neighborhood and community shopping centers, vacancy rate changes ranged from -0.6% (Little Rock) to +0.6% (Greenville). Most metros saw very little change in vacancy. That said, every metro posted an effective rent decline in the quarter led by Dayton (-1.1%) as well as Orlando, Ventura County, Austin, Fort Lauderdale, Sacramento, and three other metros that all had declines of 0.8%.
The lack of response in the retail sector was especially striking given that many retailers were already suffering from diverted e-commerce sales even before the coronavirus struck. While many retailers have reopened in the last month, many may not survive a second wave of the virus that has crippled economies in much of the south and west.
Note: Preliminary trends are subject to revision.
Copyright © 2020 Reis Inc.