For Non-Gateway Retail, 5 Years of Growth

The Lawrence Group’s City Foundry STL will include what’s reportedly the first true food hall in St. Louis.

LOS ANGELES—A climate of disruptiveness brought on by e-commerce and demographic shifts has varying implications for US retail real estate this year, says CBRE. On the one hand, it will lead to more collaboration between retail tenants and their landlords; on the other, the performance gap between top-tier and lower-rung shopping centers will only widen.

That being said, CBRE anticipates five years of solid rent growth for retail properties in non-gateway markets, thanks to their employment and population growth and their available runway for rent gains. Near term, Atlanta, Houston, Nashville and Denver all are expected to see year-over-year rent gains of at least 2.5% during 2018.