Retail real estate recovery still on, says CBRE
Los Angeles -- For the second consecutive quarter, the retail availability rate has fallen 30 basis points, according to the latest analysis from CBRE Group. The rate now stands at 12.2% and testifies to improved retailer confidence as consumer spending continues to rebound.
The availability rate tracks space that is actively being marketed and available for tenant build-out within 12 months.
All but three markets are seeing availability rates improve or stabilize compared with the second quarter of last year. Top performing markets, according to the report, include Louisville, Kansas City, Columbus, Charlotte and Memphis. Each of these markets recorded a decline of 70 basis points or more.
At the other end of the spectrum, markets such as Denver, Raleigh and Edison, N.J., recorded increases in availability rates of 30 or more basis points during second quarter 2013.
That aside, sales growth at retail centers across the U.S. has gained momentum in recent months, says the report. While growth remains slightly below long-term trends, consumers seem to be maintaining spending across most categories of goods.
The report also notes projections that the housing recovery will likely improve in coming months and benefit retailers that sell housing-related goods.
In addition, discretionary and necessity retailers have reached and surpassed pre-recession sales highs.
CBRE says that a slow but steady recovery has taken hold in all commercial real estate property sectors.