ENCINO, CA, Feb. 13, 2012 – Retail properties performed remarkably well and have a strong potential for an upside surprise despite setbacks to the U.S. economy in the second half of 2011, according to the National Retail Report (NRR) released by Marcus & Millichap, the largest real estate investment services firm. Space absorption improved for the ninth consecutive quarter, while construction starts fell to their lowest levels in 20 years. An anticipated rise in net absorption to 77 million square feet will surpass the 32 million square feet of new supply, tightening the U.S. vacancy rate to 9.2 percent by year’s end.
“The retail sector’s strong performance defied pundits’ expectations,” says Hessam Nadji (top right photo), managing director, research and advisory services for Marcus & Millichap.
“Retail assets overcame a mid-year plunge, as well as a slide in consumer confidence and a modest contraction in per-capita disposable income.
“ Ultimately, core retail sales increased 6.5 percent by year’s end, with holiday sales growing by 3.8% over 2010. Private-sector hiring totaled 1.8 million in 2011, with the addition of 466,000 jobs in 4Q.
“Consumers are still under tremendous pressure, but have shown significant resilience amid the financial-market turmoil and recession talk of the past five to six months.”
All 44 markets tracked in the report’s National Retail Index (NRI) are forecast to post job growth, vacancy declines and effective rent growth in 2012, with San Francisco, San Jose and Seattle ranking at the top of the index.
For a full copy of the NRR and rankings, contact
Stacey Coroso, Public Relations Manager, stacey.corso@marcusmillichap.com or (925) 953-1716.
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