Retail Leasing Demand Surges Amid Store Closures

Despite high-profile store closures, demand for retail space continues to rise, with nearly 13 million square feet of space leased in Q2 2024. Vacancy rates remain at a historic low of 4.5%. Discover how retail tenants are expanding and how this trend could shape the future of commercial real estate.

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Big lots filed for chapter 11 recently and although store closings are making headlines the demand for retail space across the U.S. remains surprisingly strong.
In fact, according to a recent CoStar report, the second quarter of 2024 saw a net demand increase of nearly 13,000,000ft² for retail space.
That's an 80% jump compared to the first quarter.
While move ins and move outs have balanced each other out in recent years, retailers are continuing to expand, driving demand and completion of new pre-leased space.
Vacancy rates are at historic lows around 4.5% and this trend is expected to continue through the end of 2024.
It shows a strong retail sector, mostly in suburban areas
where shopping centers are in high demand.
Looking ahead will likely see fluctuations as store closures may slightly increase. However, we expect that this will be offset by new tenants looking to enter the market keeping space occupied.

If you’re considering investing in retail properties or are curious about how these trends affect your portfolio, feel free to contact to me to talk.

www.linktr.ee/raycrebroker
www.shopcenterpros.com


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