Some 9 million square feet of space got absorbed in the first quarter, more than half of it (about 5 million square feet) in neighborhood, community and strip centers, according to a just released CBRE report. Only power centers saw a net loss in retail absorption: of 316,000 square feet.
Overall retail availability fell to 6.2 percent, down by 10 basis points from the fourth quarter of 2018. Availability rates for the neighborhood, community and strip, and lifestyle and mall sectors were down by 20 basis points from the previous quarter.
Responsible development contributed to the healthy numbers: Total retail completions declined to slightly more than 4 million square feet for the quarter, the lowest rate in about 15 years, the report says.
Del Amo Fashion Center, Torrance, Calif.
Net asking rents rose by 1.5 percent in the first quarter (up by 4.8 percent year over year), with the average asking rent reaching $17.84 per square foot, the highest level since the first quarter of 2008.
Total retail sales increased by 3.2 percent year over year, the report says. Core retail sales (excluding gas, motor vehicles and car parts) rose by 3.8 percent year over year, and they were up by 6 basis points for the quarter.
By Edmund Mander
Director, Editor-In-Chief/SCT
