According to Marcus & Millichap’s 2011 National Retail Report, we can expect to see the national retail market pick up momentum toward the end of 2011 into 2012. Here are some highlights from the report:
- The high unemployment rates and limited credit continue to hamper consumer spending this year. Businesses are more likely to fuel recovery this year through hiring and capital expenditures.
- The gains made by e-commerce retailers last year creates uncertainty for traditional retailers this year.
- New retail development is more likely to take place in densely developed, inner perimeter areas through mixed use and redevelopment of existing spaces rather than outer ring retail centers.
- The new supply of retail space in 2010 and 2011 was 85-million square feet, compared to an annual average of 202-million square feet between 2004 and 2008.
The report also ranked 44 major retail markets based on projected economic and supply and demand variables. In that ranking, Minneapolis/Saint Paul slipped from No. 12 to No. 17. Marcus & Millichap attributed the slippage not to weakening economic conditions, but to out-performance of retail recovery in East Coast and West Coast markets.