Categorized | Residential

Available Retail Space in the United States is Dwindling

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The retail sector of the commercial real estate market continues to outperform expectations. Overall space available for leasing is expected to decline next year in the United States retail property sector for the first time in seven years.

The improving retail real estate sector can largely be attributed to increased consumer spending. Sales are up almost two percent in retail stores, with electronic stores seeing the largest gains. With new construction expected to be minimal, the limited amount of retail space has enabled rent prices to increase. A two percent increase in rent prices is expected over the next two years.

The availability rate of retail space in the United States is expected to continue dropping over the next two years, which will largely contribute to the increasing rent prices.

An improving retail real estate market is a good sign for the overall economy in the United States. While recent reports indicate that consumer confidence is dipping, the overall performance of the retail sector of the real estate market may suggest otherwise. Consumers are spending more than they have in previous years, and as such, demand for retail properties is again growing.

Analysts believe that the growth over the next two years may spawn for construction in the market, as developers see opportunity with increasing demand and little available space.

The retail sector of the real estate market has largely outpaced the residential real estate market, and that trend will likely continue over the next few years. Many potential homeowners have opted not to buy a home, but rather use their income to buy more consumer goods.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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