Retail Availability Rate Hits Record Low

January 19, 2024 2 Minute Read

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Executive Summary

  • Net absorption of 12.5 million sq. ft. in Q4 brought the 2023 annual total to 40 million sq. ft.
  • Texas markets accounted for five of the top 10 U.S. markets for annual net absorption, with Dallas-Ft. Worth ranked first.
  • The overall retail availability rate hit a record-low 4.7% at year-end, with the neighborhood, community & strip center segment tightening the most.
  • Construction completions set both Q4 and annual record lows of 5.3 million and 27 million sq. ft., respectively, as construction costs remained prohibitive.
  • Texas had the top three and half of the top 10 markets for annual construction deliveries in 2023, as well as 28% of the annual total.
  • Average asking rent increased by 0.8% in Q4 and 2.4% for the year to $23.76 per sq. ft.