United States | Retail Outlook Q1 2022
Experiential retail makes a comeback as consumers crave fun
- Keisha Virtue
Retail fundamentals continue to improve at the start of 2022, and shoppers are heading back to stores, with demand for fun and immersive experiences on the rise.
U.S. net absorption for the first quarter totaled 24.1 million square feet, after an already impressive fourth quarter of 2021 at 24.7 million square feet. Over the last 12 months, net absorption reached 94.2 million square feet the highest level since 2017.
As people head back to stores, the share of e commerce sales is dropping down almost 300 basis points since the quarantine period in Q2 2020.
Eatertainment (entertainment with an emphasis on food and beverage) concepts saw traffic surge 22% from April 2019 levels and more than 36% year over year.
Digitally native brands see leasing activity pick up.
Demand for high quality retail assets has returned, with grocery anchored centers accounting for more than one third of transaction volumes in the first quarter and roughly 72% of transactions identified as Core or Core plus.
Malls saw tremendous improvement in demand during the first quarter. Net absorption, which had been negative for seven of the past eight quarters, surged to 2.5 million square feet.
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