Rent Increases Across All Retail Property Types
- Net asking rents increased across all retail property segments on both an annual and quarterly basis. The lifestyle & mall segment posted year-over-year rent growth of 6.7%, the segment’s first rent increase since Q3 2017.
- Net absorption totaled more than 14.8 million sq. ft. in Q4, largely driven by the high-street, single-tenant and “others” segments, which combined recorded more than 6.7 million sq. ft. of positive absorption.
- Consumer sentiment continued to increase in Q4 and outperformed the 10-year average. However, it fell in early January to a two-year low, which the University of Michigan attributed to a number of economic headwinds, including tariffs, stock market volatility, the global economic slowdown, the partial U.S. government shutdown and lack of clarity about monetary policies.
- Driven by low unemployment and tax cuts, continued healthy growth in wages and spending is expected in 2019.
Note: Due to the partial government shutdown, U.S. Census Bureau data on retail sales was not available at the time of publication. This report will be updated once that data is available.