SAN FRANCISCO-On a national level, the retail landscape in the year ahead remains varied with distinct high and low features. According to Jones Lang LaSalle’s retail group, bright spots will be the food and beverage industry, and select markets with strong population growth and job creation.
For the local San Francisco market, the firm says that “steadily increasing retail sales have translated to demand growth and increasing confidence among retailers, who are focusing their expansions in the periphery of the CBD as well as in surrounding residential areas.”
According to JLL’s retail group, San Francisco retail vacancy rate fell 10 basis points, year over year, and are now more than one percentage point below the 10-year historical average of 4.3%. The market is likely to witness a boom in rent recovery, with growth at its highest during the next two years.
“The last year paved the way for a successful 2013, however higher taxes will cause retailers to compete for lower disposable income dollars,” explains Greg Maloney, president of the retail group.
The theme for both retailers and retail owners will be flexibility and nimbleness, he says. “Those who adapt to technology and mobile advancements, yet keep traditional methods in check will be poised to capitalize on the steadily recovering market.”
Check back later today for more from SVP Craig Killman and more graphs specific to the local market.