The pandemic drove office workers, tenants, and tourists away in 2020 and 2021. However, according to a JLL report released at ICSC Las Vegas 2022, urban retail corridors are rebounding nationally. They haven’t returned to pre-pandemic levels but appear to be heading steadily in that direction.
According to the report, of the ten major markets research firm Kastle System tracks, the average occupancy climbed to 43.4% the week of April. 27 from just 27.9% the week of January 12.
Naveen Jaggi, president of retail advisory services at JLL, said, “In the next 18-20 months, office levels will plateau at 70-80%. It will vary by the market.”
Also driving the rebound is the public becoming more comfortable dining out again, where JLL believes most popular dine-in restaurants are located. Since the beginning of the year, there has been a 22-point increase in the number of Americans who feel comfortable dining out, currently at 82%, only down 1.4% compared to 2019.
Lastly, JLL points to the spike in tourism for increased urban shopping. With warmer weather and the easing of international restrictions, travelers will bring an influx of dollars to retailers in urban centers.