Growth in Retail Spending Positive for Commercial Real Estate Outlook
March 21, 2018 | James Sprow | Blue Vault
Marcus & Millichap, in a March 19 Research Brief, report that core retail sales growth has been increasing across many categories, extending past the holiday season as rising discretionary income has strengthened retail spending.
The growth in employment in February by 313,000 jobs and the addition by retail employers of 50,000 new hires, with general merchandisers accounting for over one-third of that figure, is a healthy trend.
Median household income is expected to increase by 3.3 percent year over year, with positions in healthcare and professional and business services becoming more prolific. These high-wage jobs are contributing to higher retail sales.
The continued growth in e-commerce sales sustains the demand for industrial properties, contributing to a vacancy drop despite the anticipated delivery of nearly 200 million square feet.
