Report: Retail rents rising and vacancy rates falling in 2016

Though it forecasts a stronger-than-anticipated closure season, Cushman & Wakefield sees average retail rents ending the year 4.6% higher than they were in 2016.



The company’s U.S. Macro Forecast released this week said that consistent demand for space in Class A retail centers is the biggest factor in rental-rate growth. Cushman analysts also predict that 2016 will see a drop in the retail vacancy rate to 5.8% from 6.6% last year — though they see it moving back up to 6% in 2017.



“Vacancy rates are falling, rent growth is positive and, for some asset classes, reaching a cyclical peak. Leasing velocity remains healthy as well,” said Rebecca Rockey, Cushman’s head of Americas forecasting.

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