Retail vacancy on a national basis dropped to an average of 6.7 percent from the fourth quarter of 2012 to the fourth quarter of 2013. That’s the lowest rate since 2008, according to CoStar Group, a Washington, D.C.-based research firm.
The most recent National Retailer Demand Monthly report from RBC Capital Markets stated that chain retailers feel enough optimism about consumer demand in 2014.
While the declines in retail vacancy from quarter to quarter have been slim, the dropping in vacancies since 2011 amounts to “pretty good improvement,” “It’s enough that now we see rent growth. The market went from totally tenant-dominated to more balanced, and there’s better productivity in retail storefronts than in the past.” according to Ryan McCullough, a real estate economist with CoStar.
Closer to home, here in Payson Arizona, Costar tracks the current Retail vacancy rate in Payson, at 7.9% ,down from 9.3% in the 4th quarter of 2012. with positive net absorption for 2013 and the 1st qtr of 2014.
Retail lease/ rental rates while down significantly from the 2nd qtr of 2009 are higher than they were in the 4th qtr of 2012 as well.
Let me know how I can help you with your commercial real estate investment needs.
The views and opinions expressed in this commentary are those of Richard D Chapin, PLLC as of the date of publication and are subject to change, and do not necessarily reflect the views of Arizona Elite Commercial Properties and/or its affiliates.
This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always seek legal and/or tax advice to obtain further information you deem necessary. I want you to be prepared.