LAS VEGAS—As part of our ICSC's RECon 2016 event coverage, we caught up with Peter Muoio, chief economist at Ten-X Research, who tells GlobeSt.com that while progress in the retail sector has not been quite as dichotomous as that of the office segment, some regional divides remain.
“Wide-scale growth has been achieved in the Southwest, due to strong demographics, as well as several West Coast markets such as San Francisco and San Jose, which boast booming economies and rapid population growth,” he explains. However, he says that the retail sector's improvement has been more disparate in the Eastern and Midwestern regions, where many markets with weak economies and demographics have contributed to comparatively higher vacancies and slowed NOI growth.
Nationally, he says, vacancies and rent growth are creeping closer to their pre-recession levels, but progress has been slow. “One of the most prevalent trends in the industry is e-retailing, which has in no small part contributed to the retail sector's sluggish recovery,” says Muoio. “The trend toward online shopping is contributing to smaller store footprints with less space needed for inventory, in addition to store closings.”
Check back with GlobeSt.com all week for all the coverage you need from ICSC's RECon 2016 event.
LAS VEGAS—As part of our ICSC's RECon 2016 event coverage, we caught up with Peter Muoio, chief economist at Ten-X Research, who tells GlobeSt.com that while progress in the retail sector has not been quite as dichotomous as that of the office segment, some regional divides remain.
“Wide-scale growth has been achieved in the Southwest, due to strong demographics, as well as several West Coast markets such as San Francisco and San Jose, which boast booming economies and rapid population growth,” he explains. However, he says that the retail sector's improvement has been more disparate in the Eastern and Midwestern regions, where many markets with weak economies and demographics have contributed to comparatively higher vacancies and slowed NOI growth.
Nationally, he says, vacancies and rent growth are creeping closer to their pre-recession levels, but progress has been slow. “One of the most prevalent trends in the industry is e-retailing, which has in no small part contributed to the retail sector's sluggish recovery,” says Muoio. “The trend toward online shopping is contributing to smaller store footprints with less space needed for inventory, in addition to store closings.”
Check back with GlobeSt.com all week for all the coverage you need from ICSC's RECon 2016 event.
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