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More Retail Openings Than Closings in First Half of ‘23

But malls continue to lose ground to such rivals as single-tenant properties

Published

1 year ago

August 16, 2023

VMSD Staff

More Retail Openings Than Closings in First Half of ‘23 — PHOTOGRAPHY: Rawpixel/iStock.com

PHOTOGRAPHY: Rawpixel/iStock.com

Retail tenant move-ins (openings) eclipsed move-outs (closings) by 21 million square feet during the first half of the year, according to the CoStar Group Real Estate Data Update for August 2023, an analysis from GlobeSt.com has found. That translates into the 10th consecutive quarter where demand for retail space has grown, CoStar notes.

But there is a major exception to this pattern: malls, where demand for space continues to drop, particularly in older Class B and C properties. But for the fourth consecutive quarter, demand rose for space in single-tenant properties as well as strip, power and neighborhood centers, CoStar reported.

When it comes to geographics, the South and West accounted for 11 of the top 12 markets that experienced relative demand gains in the past four quarters, thanks mainly to demographic growth. Phoenix topped the roster with 4.6 million square feet, followed by San Antonio, Austin, Fort Lauderdale, Fla., and Kansas City.

Click here for more on the analysis of the CoStar report by GlobeSt.com.

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