Jan 18

Recovery in Prices for Retail Space Accelerates

Retail space is in demand, and prices are rising. Net absorption of retail space during the third quarter reached the highest level since the fourth quarter of 2017, the National Association of REALTORS® reports. The biggest demand has been for general retail and neighborhood space.

New retail supply has been low throughout the year. That has led to higher prices due to strong demand. Retail asking rents climbed 2.7% over year ago amounts. Strip retail centers have posted the highest year-over-year increase of any retail property at 3.4%, NAR reports. “Power centers”—shopping centers that are usually anchored by tenants like home improvement, discount departments, and warehouse clubs and then have smaller tenants mixed in—have seen significant growth. Also, smaller shopping centers such as neighborhood and strip centers have seen increasing demand throughout the year, Brandon Hardin, an NAR research economist, writes at the association’s Economists’ Outlook blog.

The markets with the strongest year-over-year gains in asking rents were mostly centered in the Midwest, Southwest, and Southern metros, according to CoStar commercial data. The standout markets include Akron, Ohio; Las Vegas, Nev.; Tulsa, Okla.; Salt Lake City, Utah; Fort Lauderdale, Fla.; Jacksonville, Fla.; Atlanta, Ga.; Nashville, Tenn; Tampa, Fla.; and Cincinnati, Ohio.

Still, malls remain vulnerable, Hardin notes. Net absorption had been improving in the third quarter but started to reverse as of Dec. 9 as a new strain of COVID-19 sparks fears across the country. Mall vacancies have increased by 8.4% over the past year, and asking rents have risen 2.3% year-over-year, NAR reports.

Image by Nattanan Kanchanaprat from Pixabay

©National Association of REALTORS®
Reprinted with permission

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.