Source: Economics Group of Wells Fargo Bank, N.A.
Summary
Retail Market Gains Ground Heading into the Holiday Season
In the world of commercial real estate, demand for retail space appears to have strengthened heading into the holiday. The year began with a back-to-back quarterly decline in retail net absorption, a rare occurrence outside of recession.
During Q3, however, net absorption rebounded to 5.0 million square feet, roughly in line with the quarterly average in 2024. This improvement is consistent with strong retail sales in July and August, which demonstrated consumer resilience in the face of policy changes, high uncertainty and a softening labor market.