A new era in retail

A New Era in Retail

Right Sizing to a New Demand Reality

A New Era in Retail

Starting in the second half of 2017, the retail sector experienced a steep drop in demand in the face of rapid growth in e-commerce activity. This moment marked the beginning of a structural downward shift in the sector in which U.S. retail NOI slowed to 0% or lower—with prices following suit.

Key Takeaway


There’s evidence that the global retail sector has entered a new era in which it has found its footing after years of disruption.


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Retail had already endured significant disruption due to the Great Financial Crisis (GFC), in which demand for U.S. retail space dropped significantly. The sector also endured simultaneous shocks from both the growing popularity of e-commerce as well as impacts from COVID. The resulting drop in supply from these forces has translated into historic lows in vacancy rates in the U.S.

Further explore how the retail sector has entered a new era.

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Disclaimer


The content herein and in the report is provided for informational purposes only. Nothing above or in the report constitutes investment, legal, or tax advice or recommendations. Such content should not be relied upon as a basis for making an investment decision and is not an offer of advisory services or an offer to invest in any product or asset class. It should not be assumed that any investment in an asset class described herein will be profitable. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice. Opinions or beliefs expressed in these materials may differ or be contrary to opinions expressed by others. Certain information above and in the report has been obtained from third-party sources. Hines has not independently verified such information.


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