Q2 2023 US Retail Figures

Executive Summary

• Net absorption of U.S. retail space totaled 5.9 million sq. ft. in Q2—the lowest level of demand since the sector recorded 10.1 million sq. ft. of negative net absorption in Q3 2020.
• The overall availability rate fell by 10 basis points (bps) in Q2 to a record-low 4.8%.
• The average asking rent increased by 2.1% year-over-year to $23.21 per sq. ft., driven by big gains in Raleigh and several Florida markets.
• Construction completions remained at historically low levels due to elevated construction costs and economic concerns.
• Suburban submarkets continued to outperform downtown submarkets as retailers adjusted their expansion strategies.