Retail Market Recovering More Quickly Than Expected; Investors Selective But Actively Acquiring Properties
- Retail sector poised for growth. Following the upheaval caused by the health crisis, retail property performance is expected to begin realigning with the new realities of space demand.
- Consumer spending surge to remain during second half. Since February of 2020, core retail sales have soared by 16.8 percent, largely supported by government stimulus.
- Job creation potential at record levels. Employers are having a challenging time finding and onboarding workers as the economy transitions out of the health crisis.
- Bevy of light headwinds persist for retail. Most indicators point toward a better-than-expected recovery for the retail market, though some concerns exist that could impact brick-and-mortar locations.
Sources: BLS; Federal Reserve; Office of Financial Research; U.S. Census Bureau
*Forecast | Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics, Capital Economics; Freddie Mac; Moody’s Analytics; Mortgage Bankers Association; National Association of Realtors; National Association of Home Builders; BLS; Federal Reserve; RealPage, Inc.; U.S. Census Bureau; Wells Fargo
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