Retail Market Update – Q3 2024 – Nationwide Overview & Kansas City Highlights
Q3 Market Overview
Nationwide
- Supply Constraints Amid Strong Demand: Activity remains slow as supply lags behind steady demand, though the industry looks forward to more stable ground.
- Retail Vacancies Making Headlines: Major closures like Bed Bath & Beyond and Rite Aid add 22 million square feet of retail space. Macy’s and Walgreens follow with selective downsizing.
- Creative Reuse on the Rise: Developers are creatively repurposing uniquely designed vacant spaces, bringing fresh uses to these locations.
- Rate Cut Sparks Mixed Market Reactions: A Fed rate cut brings a spark of optimism, but opinions are divided. Will it fuel the retail market or was the boost already expected? Time will tell as we close out the year.
Kansas City Highlights
- Record-Low Vacancies: Q3 vacancies sit at 3.76%, with over a million square feet absorbed as quick-service spots and repurposed spaces thrive.
- Tight Supply Meets High Demand: Only 490,000 square feet delivered last year, with strong demand for small spaces driving pre-leased developments.
- Rent Growth: Limited availability has boosted rents by 4.1%, with leasing hotspots in South Downtown and Country Club Plaza.
- Sluggish Transactions: Sales remain 60% below the 10-year average as buyer-seller expectations differ, slowing deal activity.
With access to nearly 400 retail markets nationwide, we provide invaluable insight to support your commercial real estate investment goals. Reach out to us today to begin a conversation about how we can help you navigate the complexities of the retail real estate landscape.