Rich McMahon’s Post

Retail space is being snapped up at a record pace. After more than a decade of minimal shopping center development, retail tenants are now competing fiercely for available space—if they can find it. Riding the tailwinds of the post-pandemic sales boom, the amount of available shopping center space has declined steadily, hitting historic lows. Demand for retail space is broad-based, with availability shrinking across box sizes and regions. Major national retailers are aggressively pursuing significant store expansions, signaling Wall Street to expect thousands of future openings. This scarcity has intensified competition for prime locations across the U.S. Retailers are paying higher rents, accepting pricier escalations, and jumping on spaces as soon as they hit the market—or even before they do! Take Dollar Tree, for example. To keep pace with its expansion plans, it acquired 170 former 99 Cents Only leases in bankruptcy court. The time from space availability to tenant securing has dropped to just 8.5 months, the fastest in over two decades. Even more impressive, more than 80% of retail spaces listed in the past year were leased within six months, and 98% within nine months—doubling the average pace from the past decade. In the past year, nearly half of all retail spaces have landed a tenant within just three months of listing, compared to the nine-month average over the past decade. The game has changed. Landlords are no longer seeking tenants; tenants are competing for space. The retail real estate sector is now characterized by fierce competition, creative leasing strategies, and a tenant base willing to pay a premium for prime locations. https://lnkd.in/grJm6Gjz #RetailTrends #CommercialRealEstate #RetailExpansion #CRE #RetailDevelopment #TenantRepresentation #Leasing #RetailMarket #PhoenixCRE #RealEstateTrends

What's the latest on the NYC retail landscape? Today, leasing agents, operators and owners are gaining a better understanding of the appropriate rent levels for different submarkets and the true value of retail spaces.     According to Jackie Totolo, Senior Managing Director at Newmark, now "Retailers have enough data to understand the flows of traffic and can report sales more accurately to determine how much rent they can pay."    Read the full France Media Inc. article to learn more about NYC’s evolving retail landscape.    #NYCRetail #RetailMarket #Retail #CRE #RetailCRE #CommercialRealEstate 

Good news for Retail today, how about tomorrow? If you do not have time to read the entire article, please allow me to extract and apply the relevant.  “Retail tenant move-ins (openings) eclipsed move-outs (closings) by 21 million square feet during the first half of the year." Big positive number, first time or ongoing trend? "Demand for space has now increased for 10 consecutive quarters.” The consumer is alive and spending. Are they visiting any specific retail asset type? "For the fourth consecutive quarter, there was rising demand for space in single-tenant properties as well as strip, power, and neighborhood centers." Easy access shopping, which probably means malls continue to suffer, right? "Malls are a major exception.... as demand for space in malls continues to drop, particularly for Class B and C properties." Any part of the country doing better than others? "The South and West accounted for 11 of the top 12 markets that experienced relative demand gains in the past four quarters." How does growth compare to prior months? "Even though demand is growing, its pace of growth has slowed from 2021 and 2022." Growing at a slower rate is a trend worth watching. #cre #retailrealestate #creinvesting #commercialrealestateinvesting #commcap

"Brick and Mortar Retail Is Dead" was often the lead story during Covid. During the "Covid era", I did a number of interviews with the media and was adamant that retail was experiencing a much-needed accelerated evolution, but brick and mortar storefronts were far from dead. My career has been split almost evenly between the tenant and landlord sides of the business. I've seen the pendulum swing back and forth more than once between the leverage of the landlord or the tenant. CoStar Group is reporting that more than 80% of retail spaces listed on the market during the past year were leased within six months of becoming available, while 98% were leased within nine months. This is the most rapid pace on record and is more than double the average from the past decade. Brick and Mortar wasn't dead. Nor will it die. Evolve, yes. Tremendous opportunities for entrepreneurs that recognize how to benefit from the evolution of retail! #cre #retailnews #retail #retailtrends #leasing #dealmakers https://lnkd.in/euwbuiEk

Retail space demand skyrockets! In a dramatic shift, retail tenants are now fiercely competing for limited shopping center space. Over the past decade, available space has plummeted to historic lows. Retailers like Dollar Tree are snapping up leases at an unprecedented pace, with prime locations often secured within months of becoming available. For example, Dollar Tree recently acquired 170 former 99 Cents Only leases to fuel its expansion plans. This fierce competition means higher rents and quicker lease signings, with 80% of retail spaces leased within six months. 💡 Key takeaway: Retailers must adopt creative leasing strategies and be prepared to act swiftly to secure prime locations. Retailers compete, pay up for prime spots! How has the demand for retail space impacted your business strategy? Share your thoughts below! #RetailTrends #CommercialRealEstate #RetailSpace #BusinessStrategy #CoastlineEquity

The first six months of this year have been very good to the brick-and-mortar retail sector, according to new data from CoStar Group. Demand for retail space increased by 21 million square feet in the first half of 2023. Despite a lethargic economy, CoStar found retail tenant move-ins (openings) eclipsed move-outs (closings) by 21 million square feet during the first half of the year. #commercialrealestate #CoStarGroup #malls #Phoenix #retailspace

🛍️ Despite retail giants facing bankruptcies in 2023, U.S. retail tenants displayed remarkable resilience. The overall retention ratio for shopping centers hit 97.4%, surpassing post-2017 store closings by 0.8%—42 million square feet defiantly retained. Limited new development left just 6.2% of shopping center space available, the lowest since 2006. With tenants staying put amid limited options, landlords are benefiting. The average time a retail space stays available before leasing has dwindled to 9.5 months, the shortest since pre-Great Recession. The retail space market is shifting—proving its adaptability. 🔄🛒 #costar #data #proptech #realestatestrategy #commercialrealestate

Interesting read on the current state of retail spaces! For every 2 "retail apocalypse" articles out there, there's 1 like this. According to recent data, nearly half of all retail spaces have secured a tenant within just three months of listing in the past year. This is a significant improvement compared to the past decade, where it took an average of nine months to achieve the same level of leasing activity. Check out the full article here: [Read more](https://lnkd.in/efPfY2sa) #RetailRealEstate #RetailTrends

The first six months of this year have been very good to the brick-and-mortar retail sector, according to new data from CoStar Group. Demand for retail space increased by 21 million square feet in the first half of 2023. Despite a lethargic economy, CoStar found retail tenant move-ins (openings) eclipsed move-outs (closings) by 21 million square feet during the first half of the year. #commercialrealestate #CoStarGroup #malls #Phoenix #retailspace

Retail is on the rise. As store openings outpace closings, space availability is becoming limited. As a result, rent rates have increased 3.6% across all asset classes, with primary markets seeing an increase of 7% to 8%. Shopping center owners are benefiting from the rise in rent caused by the gap between the demand for store space and new supply. Read more about the disconnect between supply and demand here [paywalled content]: https://bit.ly/459T5c9 #CommercialRealEstate #CRE #RealEstate #Retail #SupplyandDemand