2022 Marks One of Retail Sector’s Best Years

Executive Summary

• Consistent demand for retail space and little new construction throughout 2022 dropped the retail availability rate below 5% and raised the average asking rent by 2.5% in Q4.
• The neighborhood, community & strip center sector had the strongest performance for the year, while the lifestyle & mall segment remained inconsistent.
• Consumer sentiment ticked up slightly in Q4 2022 but remained at a near-record low despite continued job and wage growth.
• Easing inflation and plummeting gasoline prices contributed to lower total retail sales, although restaurant and grocery sales remained strong on both a quarter-over-quarter and year-over-year basis.