Despite Weaker Retail Sales Growth, Real Estate Metrics Remain Solid in Q2
U.S. Retail | Q2 2022
21 Jul 2022 1 Minute Read
- Total retail sales growth of 3.8% in Q2 was well below the five-year quarterly average of 7.0%—a sign that falling consumer sentiment is beginning to affect retail sales. Encouragingly, retail sales rebounded in June.
- Retail space absorption fell by 40% quarter-over-quarter and 20% year-over-year in Q2 to 19.9 million sq. ft.
- Expansion by existing retailers largely drove Q2 absorption as new construction remained muted.
- The average retail asking rent grew by 2.4% year-over-year, the highest increase in more than five years.
- The 9.1% inflation rate in June well outpaced wage growth of 4.4% in Q2, lowering the personal savings rate to pre-pandemic levels.