Retail Top & Bottom Markets, Q4 2018

Retail Top & Bottom Markets: Effective Rent Growth

Orlando had a year-over-year growth rate of 4.8% this quarter, putting it easily in the top spot on the chart. It was also one of the top five markets in the third quarter. The rest of the markets in the top five range from 3.3% (Cincinnati) to 3.9% (Charleston). The national average is 1.4%, down slightly from last quarter’s 1.6%. Fairfield County, New Haven, and Lexington were in the bottom five markets last quarter as well.

Effective Revenue Per Square Foot, Percent Change 2017Q4 – 2018Q4

Source: Reis, Real Estate Solutions by Moody’s Analytics


In the fourth quarter, the Albuquerque market had some of the worst performing properties by a margin. About 20% of the properties in the sample for Albuquerque had year-over-year effective revenue growth rates lower than -10%. The worst performing property in the metro had a growth rate of -21%. On the flip side, the best performing property in the metro had a quite competitive growth rate of 17%.


Analysis by Victor Calanog, PhD CRE®. Calanog is the Chief Economist & Senior Vice President at Reis. He and his team of economists and analysts are responsible for the firm’s market forecasting, valuation, and real estate portfolio analytics services. He holds a PhD in Applied Economics and Management Science, trained by a dissertation committee composed of faculty from the Wharton School of the University of Pennsylvania and Harvard Business School.


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