Retail sector poised for growth and adaptation

Feb 29, 2024
Written by WR Communications

Recent analyses from Marcus & Millichap and JLL paint an encouraging picture for the future of the retail sector in the United States. With the number of store openings surpassing closures and a projected increase in the consumer base, the retail industry is on track to become the most sought-after category in commercial real estate. Urban retail markets are demonstrating resilience, marked by strong tenant demand and steady rent escalation.

Despite facing challenges such as escalating levels of consumer debt and evolving consumer preferences, retailers specializing in discount goods, health services, and pet-related products are expected to thrive. This optimism is fueled by consumers’ continued focus on essential purchases and experiences, as well as the anticipated growth in spending across various retail segments.

One noteworthy trend shaping the retail landscape is the integration of health providers and specialists into retail settings, contributing to a sustained period of positive net absorption in multi-tenant properties. Urgent care facilities, health systems, and even animal hospitals are increasingly occupying retail spaces, catering to the growing demand for convenient healthcare access and pet-related services.

Retailers are expected to adapt to changing consumer behaviors and market dynamics, leveraging opportunities for growth and innovation. As the retail sector continues to evolve, it demonstrates its resilience and capacity for transformation in response to emerging trends and challenges.

Read more:


Return to newsletter